Barden v. Murphy-Brown, LLC

• Decision Date: 15 March 2021
• Docket Number: No. 7:20-CV-85-BR,7:20-CV-85-BR
• Court: U.S. District Court — Eastern District of North Carolina
• Parties: JEANNIE MAE BARDEN, et al., Plaintiffs, v. MURPHY-BROWN, LLC and SMITHFIELD FOODS, INC., Defendants.

JEANNIE MAE BARDEN, et al., Plaintiffs, v. MURPHY-BROWN, LLC and SMITHFIELD FOODS, INC., Defendants.

No. 7:20-CV-85-BR

UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF NORTH CAROLINA SOUTHERN DIVISION

March 15, 2021

ORDER

This matter is before the court on defendants' (1) motion to dismiss, (DE # 28), and (2) motion to strike, (DE # 30).

I. BACKGROUND

In May 2020, plaintiffs initiated this action against Murphy-Brown, LLC ("Murphy-Brown") and Smithfield Foods, Inc. ("Smithfield"). According to plaintiffs, Murphy-Brown owns over 20,000 swine located at Vestal Farms in Magnolia, North Carolina. (Am. Compl., DE # 18, ¶¶ 2, 4, 6.) The swine have allegedly caused odor, dust, feces, urine, and flies, among other things, to infiltrate plaintiffs' neighboring properties. (See, e.g., id. ¶¶ 5, 10, 38-40.) Transportation of the swine (dead and alive) and their feed in large trucks on streets outside plaintiffs' homes causes noise, dust, liquid, and dead animal parts to enter plaintiffs' properties. (Id. ¶ 12.) Dead swine, placed in boxes, attract buzzards, flies, and vermin, which drop swine body parts on plaintiffs' properties. (Id. ¶ 13.) Plaintiffs allege that Murphy-Brown has caused its swine to create the injurious conditions and that defendants exercise control over the management of the swine and operation of Vestal Farms. (Id. ¶¶ 6, 261, 304, 315, 316, 325, 326.) Plaintiffs allege claims for trespass, negligence, civil conspiracy, and unjust enrichment.¹ (Id. at 45-54.) They seek compensatory and punitive damages.² (Id. at 55.)

Defendants contend the court should dismiss plaintiffs' amended complaint for failure to join an indispensable party and for failure to state any claim for relief. Also, defendants request that the court strike from the amended complaint certain allegations they deem objectionable. Plaintiffs oppose dismissal and the removal of any allegations from the amended complaint.

II. DISCUSSION

A. Motion to Dismiss

1. Failure to join an indispensable party

First, defendants argue that plaintiffs' amended complaint should be dismissed for their failure to join Circle K II, Inc. ("Circle K") pursuant to Federal Rule of Civil Procedure 12(b)(7). (Mem., DE # 29, at 2-9.) That rule permits a party to assert the defense of failure to join a party under Rule 19 by way of motion. See Fed. R. Civ. P. 12(b)(7).

Rule 19 sets up "a two-step inquiry." We ask "first whether the nonjoined party is necessary under Rule 19(a) and then whether the party is indispensable under Rule 19(b)."

Pursuant to Rule 19(a), a party is necessary if

(A) in that person's absence, the court cannot accord complete relief among existing parties; or

(B) that person claims an interest relating to the subject of an action and is so situated that disposing of the action in the person's absence may: (i) as a practical matter impair or impede the person's ability to protect the interest; or (ii) leave an existing party subject to a substantial risk of incurring double, multiple, or otherwise inconsistent obligations because of the interest.

A necessary party should be ordered into the action. But "[w]hen a party cannot be joined because its joinder destroys diversity, the court must determine whether the proceeding can continue in its absence or whether it is indispensable pursuant to Rule 19(b) and the action must be dismissed."

Rule 19(b) provides guidance on the identification of an indispensable party: "If a person who is required to be joined if feasible cannot be joined, the court must determine whether, in equity and good conscience, the action should proceed among the existing parties or should be dismissed." In this regard, we are given the following nonexclusive factors to consider:

(1) the extent to which a judgment rendered in the person's absence might prejudice that person or the existing parties;

(2) the extent to which any prejudice could be lessened or avoided by: (A) protective provisions in the judgment; (B) shaping the relief; or (C) other measures;

(3) whether a judgment rendered in the person's absence would be adequate; and

(4) whether the plaintiff would have an adequate remedy if the action were dismissed for nonjoinder.

"Courts are loath to dismiss cases based on nonjoinder of a party, so dismissal will be ordered only when the resulting defect cannot be remedied and prejudice or inefficiency will certainly result."

Neither prong of Rule 19 is to be applied merely as a "procedural formula." To the contrary, the "[d]ecisions must be made pragmatically, in the context of the substance of each case, and courts must take into account the possible prejudice to all parties, including those not before it."

McKiver v. Murphy-Brown, LLC, 980 F.3d 937, 950-51 (4th Cir. 2020) (citations omitted).

Defendants contend Circle K is a necessary party because "Circle K[] has a direct pecuniary interest in the litigation, and as the party whose conduct is targeted, it has the right to defend itself not just as a witness, but as a party, to avoid any prejudicial ruling." (Mem., DE # 29, at 7 (citation omitted)). According to Circle K, as the operator of Vestal Farms and pursuant to an agreement with Murphy-Brown, it has raised swine at the farm since 2016. (Kilpatrick Decl., DE # 29-1, ¶¶ 3-4, 6.)³ It is concerned that unless it participates directly in this litigation, it cannot protect its use of the farm, its farming practices, and its financial investment in the farm.⁴ (Id. ¶ 8.)

Circle K's pecuniary interest in this action is not direct. Plaintiffs do not seek to modify the operations of Vestal Farms, and the validity of Circle K's agreement with Murphy-Brown is not at issue here. Rather, plaintiffs seek to hold defendants monetarily responsible for their actions regarding the swine at Vestal Farms. While Circle K's conduct will likely be relevant, the outcome of this litigation does not "turn on" its conduct. Cf. Nat'l Union Fire Ins. Co. of Pittsburg, Pa. v. Rite Aid of S.C., Inc., 210 F.3d 246, 251 (4th Cir. 2000) (affirming the district court's dismissal of a declaratory judgment action between a subsidiary and its insurer for failure to join the subsidiary's parent company where the result of the suit turned on the parent company's conduct in notifying the insurer of the underlying action and the district court would be required to interpret the notice provisions of the policy between the parent company and the insurer). Any impact an adverse judgment against defendants might have on Circle K's interests related to Vestal Farms is speculative and not sufficient for the court to conclude that proceeding without Circle K as a party will impair or impede its ability to protect its interests at Vestal Farms. See McKiver, 980 F.3d at 952 ("Even if an absent party is alleged to have played a central role in the action at issue, and even if resolution of the action will require the court to evaluate the absent party's conduct, that party in many cases will not have interests that warrant protection under Rule 19(a)(1)(B)(i). The interest in question should be more than a financial stake, and more than speculation about a future event." (cleaned up and citation omitted)). Therefore, Circle K is not a necessary party under Rule 19(a), and the court will not dismiss this action for plaintiffs' failure to join it as a party.

2. Failure to state a claim

Next, defendants argue the amended complaint should be dismissed because plaintiffs have failed to state any claim for relief pursuant to Rule 12(b)(6).

To survive a 12(b)(6) motion, a complaint must contain enough facts "'to raise a right to relief above the speculative level' and 'state a claim to relief that is plausible on its face.'" "[A]lthough a court must accept as true all factual allegations contained in a complaint, such deference is not accorded legal conclusions stated therein," and "[t]he mere recital of elements of a cause of action, supported only by conclusory statements is not sufficient."

Md. Shall Issue, Inc. v. Hogan, 963 F.3d 356, 361 (4th Cir. 2020) (citations omitted), pet. for cert. filed, No. 20-855 (U.S. Dec. 29, 2020).

i. Right to Farm Act

Defendants initially contend North Carolina's Right to Farm Act ("RTFA"), N.C. Gen. Stat. § 106-700, et seq., bars all of plaintiffs' claims.⁵ (Mem., DE # 29, at 9-14.) The Act's purpose is "to reduce the loss to the State of its agricultural and forestry resources by limiting the circumstances under which an agricultural or forestry operation may be deemed to be a nuisance." N.C. Gen. Stat. § 106-700. In furtherance of that purpose, it places certain requirements on a plaintiff to successfully assert a nuisance claim against agricultural and forestry operations. Relevant here is the requirement that the action be filed within one year of the establishment of the subject operation. Id. § 106-701(a)(3). Notably, the RFTA's requirements "do[] not apply to any cause of action brought against an agricultural or forestry operation for negligence, trespass, personal injury, strict liability, or other cause of action for tort liability other than nuisance . . . ." Id. § 106-702(d).

Defendants argue that plaintiffs' claims "are merely disguised nuisance claims," (Mem., DE # 29, at 9), and should be dismissed because "[p]laintiffs admit operating hog farms have existed at Vestal Farms . . . for decades," (id. at 11 (citation omitted).) Plaintiffs urge the courtto accept plaintiffs' claims for what they are—non-nuisance-based claims—such that the RTFA does not preclude them. (See Resp., DE # 38, at 7-8.)

"A complaint 'must be judged by its substance rather than according to its form or label . . . .' As courts have recognized, the plaintiff's designation of the counts in a complaint does not control the interpretation of those counts." Edwards v. Bank of N.Y. Mellon, No. 2:14CV304, 2014 WL 5594876, at *8 (E.D. Va. Oct. 31, 2014) (citations omitted). Courts do not hesitate to recharacterize a party's denominated claim to align it with its...