Delcon Construction Corp. v. United States Department of Housing, & Urban Development
Deleon Construction Corporation (plaintiff) filed an action against the United States Department of Housing and Urban Development (HUD) and its Secretary, Mel Martinez (defendants), based on quantum meruit/unjust enrichment and conversion of trust funds. The defendants moved to join Russand, Inc., as a necessary party, arguing that Russand was a party to the underlying construction contract and Building Loan Agreement, which are central to Deleon's claims. The court found that Russand is a necessary party under Rule 19(a)(1) of the Federal Rules of Civil Procedure because complete relief cannot be accorded among the existing parties without Russand's presence, and its absence could subject HUD to inconsistent obligations. Therefore, the court granted the defendants' motion and ordered Deleon to join Russand as a necessary party defendant within thirty days, or face dismissal of the action.