## Facts

- Gross, a jeweler, held a jeweler’s block insurance policy issued by Hanover Insurance Company.
- Gross consigned jewelry to 3‑R Jewelers, owned by Anthony Rizzo, and left additional jewelry at the store for safekeeping.
- Jewelry was stolen from the store, and Gross sought coverage under the policy for the loss.
- Hanover suspected that Joseph Rizzo (Anthony’s brother and store employee) may have facilitated or been responsible for the theft or related wrongdoing.
- Hanover asserted factual grounds including: an alleged witness account that Joseph handed a bag to a third party at closing on the night of the theft; Joseph’s explanation that the theft occurred when he turned away briefly; and allegations of Joseph’s cocaine addiction.
- Hanover also asserted that Anthony Rizzo negligently hired, retained, or supervised Joseph despite knowledge of Joseph’s drug problem and position of trust.
- Hanover moved for leave under Federal Rule of Civil Procedure 14(a) to file a third‑party complaint against Anthony and Joseph Rizzo; Gross opposed, arguing speculation, delay, and prejudice from expanded discovery.

## Issues

1. Whether Rule 14(a) permits Hanover, in an insurance coverage action, to implead Anthony and Joseph Rizzo as third‑party defendants on the theory that they are or may be liable to Hanover for all or part of Gross’s claimed loss.
2. Whether Hanover’s proposed third‑party allegations were sufficiently connected to the main action and sufficiently supported to justify impleader despite asserted delay and potential prejudice.

## Decision

- The court granted Hanover’s motion for leave to file a third‑party complaint under Rule 14(a).
- The court found Hanover’s third‑party claims arose from the same event as the coverage dispute: the theft at 3‑R Jewelers and the circumstances surrounding it.
- The court held Rule 14(a) requires only a showing that the proposed third party “is or may be liable” over to the defendant; proof of liability is not required at the impleader stage.
- The court concluded the motion was not so late as to warrant denial and that any additional discovery burden did not constitute significant prejudice when weighed against resolving related disputes in one action.

## Legal Principles

- Under Fed. R. Civ. P. 14(a), a defending party may implead a nonparty who “is or may be liable” to the defending party for all or part of the plaintiff’s claim.
- A Rule 14(a) impleader claim must be derivative of the main claim and sufficiently tied to the same transaction or occurrence; it is improper when it injects an unrelated controversy.
- At the impleader stage, allegations need only plausibly support potential liability over; the defendant need not establish the third party’s liability on the merits.
- Courts consider case management factors, including delay and prejudice, and commonly permit impleader when joinder will reduce duplicative litigation and no significant prejudice is shown.

## Conclusion

The court allowed Hanover to implead the store owner and employee because Hanover plausibly alleged they may be liable over for the loss Gross sought to recover under the policy, the third‑party claims were factually bound to the theft at issue, and consolidated litigation served efficiency without significant prejudice to Gross.


Gross v. Hanover Ins. Co., 138 F.R.D. 53 (S.D.N.Y. 1991)