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Watergate (P) notified Legum & Norman (D), its management company, that the balconies of the units required repair. D hired Wiss (D1), an engineering firm, to design the repairs. D hired Brisk (D2) to make the repairs designed by D1. The repairs were unsatisfactory, and P sued D and D1 in federal court. The pleadings by P conceded that D2 did the repairs per D1's specifications. D filed a cross-complaint against D1, and a third-party claim against D2 alleging D2 performed the repairs negligently. D2 moved for dismissal under Rule 12(b)(6); the claim against it was derivative of the main claim.

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