Yelin v. Carvel Corp.

The Yelins (defendants) took over a lease for franchise retail space from a Carvel subsidiary, which had leased the space from the Doolittles (plaintiffs). After the Yelins' business failed and they closed early, the Doolittles sued them for breach of the lease. The Yelins impleaded Carvel, alleging Carvel had fraudulently induced them into the franchise, breached the franchise agreement by not timely providing materials, and thereby caused the business failure that led to the lease breach. The trial court dismissed the third-party complaint against Carvel.

Whether a defendant may file a third-party complaint if the alleged liability of the third party does not depend upon the outcome of the plaintiff's claim against the defendant.