3. Multiparty Litigation Flashcards
When may multiple people sue together as co-plaintiffs?
When there claims:
(1) arise from the same transaction or occurrence and
(2) raise at least one common question
What are three reasons a party may be necessary and indispensable?
- Without her, the court cannot accord complete relief among existing parties (multiple suits)
- Her interest may be harmed if she is not joined (practical harm) (most likely on bar)
- She claims an interest that subjects a party (usually D) to risk of multiple obligations
Are joint tortfeasors necessary?
No
When can a necessary party be joined and what happens when they can’t?
A necessary party can and will be joined if joinder is feasible:
(1) there is PJ over him and
(2) joining him will not goof up diversity jurisdiction..
If a necessary party can’t be joined the court must either :
(1) proceed without him OR
(2) dismiss the entire case because the absentee is indispensible
This is determined based on whether:
(1) there is an alternative forum available
(2) there is an actual likelihood of harm to him
(3) the court can shape relief to avoid harm to him
Impleader
Defendant, either within 14 days of serving answer or with court’s permission, brings in a new part as a third-party defendant to pay all (indemnity) or part (contribution) of his own liability by:
(1) filing a third-party complaint naming the TPD; and
(2) serving process on the TPD (must have PJ)
Plaintiff can then assert a claim against the TPD and the TPD can assert a claim against the plaintiff as long as it arises from the same T/O.
Remember: check for SMJ
Note: this must be the attempt of the defendant to deflect his own liability
Intervention
Nonparty TIMELY brings herself into the case as either a plaintiff (asserting a claim) or as a defendant (defending a claim) through either:
INTERVENTION OF RIGHT: her interest may be harmed if she is not joined and is not adequately represented now (same as a necessary party)
or
PERMISSIVE INTERVENTION: her claim or defense and the pending case have at least one common question. This is within the courts discretion but is usually ok unless intervention will cause delay or prejudice to someone
Class Action
Representative suing on behalf of a group must:
- Meet all four of these initial requirements:
a. NUMEROSITY: too many class member for practicable joinder (no magic number)
b. COMMONALITY: some issue in common to all class members, so resolution of that issue will generate answers for everybody in one stoke
c. TYPICALITY: representative’s claims are typical of those of the class
d. REPRESENTATIVE ADEQUATE: the class representative fairly and adequately represents class - Fall within one of three types:
a. PREJUDICE: class treatment necessary to avoid harm (prejudice) either to class members or to the non-class party (many people with claim to limited fund)
b. INJUNCTION (type 2): Class seeks an injunction or declaratory judgment because defendant treated the class alike
c. DAMAGES (type 3): (i) common questions predominate over individual questions; and (ii) class action is the superior method to hand the dispute
When does a claim become a class action?
Although the representative’s complaint will say class action it is not a class action until the court certifies it by:
(i) defining the class and the class claims, issues or defense AND
(ii) appointing class counsel who must fairly and adequately represent the interests of the class
What are the notice requirements for a class action?
In the type 3 class, the court must notify class members that they are in the class by individual notice (usually by mail) to all reasonably identifiable members. The notice is paid for by the representative and tells them that they:
(i) can opt out
(ii) will be bound if they don’t
(iii) can enter a separate appearance through counsel
There are no notice requirements for types 1 and 2 classes and therefore no rights to opt out and are not bound by the judgment.
Can parties settle or dismiss a certified class action?
Only with court approval. In all three types, the court gives notice to class members to get their feedback on whether the case should be settled or dismissed. In a type 3 class the court might give members a second chance to opt out.
How does subject matter jurisdiction affect a class action claim?
If a class action asserts state-law claims, brought under diversity of citizen consider only the representative’s citizenship. And the rep’s claim must exceed $75k
SO: as long as the rep is diverse from all defendants and as long as the rep’s claim exceed $75k, the class action will invoke diversity
CAFA (Class Action Fairness Act)
Lets a federal court hear a class action (of at least 100 members) if any class member (not just the rep) is of diverse citizenship from any defendant and if the aggregated claims of the class exceed $5M. Makes it easier for interstate class action to go to federal court.
