Continental Insurance v. N.A.D., Inc.

MEMORANDUM *

Appellants Continental Insurance Company, Continental Assurance Company, and Continental Casualty Company (collectively, “CNA”) appeal the District Court’s dismissal of their federal action for failure to timely substitute the real party in interest pursuant to Rule 17(a).

Following a tragic accident during a routine operation at Southern Nevada Surgical Center (“SNSC”), a state lawsuit was initiated and, after approximately two years, a settlement was reached. CNA paid $14 million of the settlement on behalf of SNSC, who then filed a claim for Indemnity and Contribution against Drager and Invivo (collectively, the “Appellees”), the manufacturers of some of the operating room equipment. Appellees argued that CNA was the real party in interest, a claim they took to the Nevada Supreme Court and the resolution of which took *661 approximately three years. CNA in the meanwhile filed a protective action in state court preserving its rights. Appellees removed the protective action to federal court. The District Court stayed the case pending resolution of the state proceeding.

Shortly after the Nevada Supreme Court ruled that SNSC was the proper party to be pursuing the…