P sued D for nonpayment of construction work. D removed the action to federal court and counterclaimed against P. P answered the counterclaim and, pursuant to Rule 14(b) of the Federal Rules of Civil Procedure, filed a third-party action against sub-contractor R.K. Elite-HydroVac Services, Inc. (Hydro), alleging claims for indemnity and contribution for any amount that may be determined to be owed to National Can by Guaranteed Systems as a result of the counterclaim initiated by National Can. Hydro moved to dismiss for lack of supplemental jurisdiction.