Fed Jx Flashcards
What are necessary (“required”) parties that must be joined?
If a party is “necessary”, the court may order joinder of the absenteePROVIDED the ct has pjx over ∆ and joinder won’t mess up diversity “Necessary” = Without the absentee party, the ctcannot accord complete relief among those already joined (worried about multiple suits); The absentee’s interest will be harmed if he isn’t joined (practical harm); OR Absentee claims an interest which subjects a party (usually ∆) to possibility of multiple obligations NOTE: Joint tortfeasors are NOT necessary If party CANNOT be joined, the ct has 2 choices: (1) proceed w/o absentee ∆; OR(2) dismiss the ENTIRE case→based on balancing: Whether there is an alternative forum available where EVERYONE can be joined Likelihood of real harm to anybody by proceeding w/o absentee Can the ct do anything to avoid harm to absentee IF ct, dismisses, then absentee was “indispensable”
What 6 types of claims may be joined in a pending case?
Type of Joinders
- Counterclaims
- Cross-claims
- Impleader
- Intervention
- Interpleader Class Action
What is a counterclaim?
Claim against π filed with the responsive pleading (answer) 1) Compulsory CC– arises from same T/O as π’s claim MUST be filed with ∆’s answer or else waived – cannot sue on it in separate case Not waived if ∆ moved to dismiss w/o answering→ if granted, ∆ can still bring action against π in separate case 2) Permissive CC – NOT from same T/O so may assert here or a separate case. **REMEMBER: a ct must be smjx over claim!!→ look to diversity, alienage, FQ first - THEN try supp jx Supp jx okay for comp. CC even if less than $75k (maybe o.k. for permissive if has “loose connection w/ original claim”)
What is a crossclaim?
Claim against a ∆co-party MUST arise from same T/O as the underlying action You do NOT have to file a crossclaim or risk waiver (NEVER compulsory) **REMEMBER: a ct must be smjx over claim!! → look to diversity, alienage, FQ first - THEN try supp jx
What is a impleader?
∆ joins a third-party defendant (TP∆) b/c TP∆ might be liable to the defending party for the claim against the defending party (e.g. indemnity; contribution) ∆ has right to implead w/in 14 DAYS after serving answer but after that need Ct. permission Need pjx over TP∆ π & TP∆ can assert a claims against each other IF same T/O **REMEMBER: a ct must be smjx over claim!! → look to diversity, alienage, FQ first - THEN try supp jx
What is a intervention?
Intervention= absentee wants to join a pending suit Can choose whether to intervene as a π or ∆& the court can realign her if she came in on the wrong side. Application to intervene must be “timely” TYPES 1) Intervention of right – must show that absentee’s interests may be harmed if she is not joined & not adequately represented now 2) Permissive intervention - A’s claim or defense & the pending case have at least one common question Court has discretion to allow intervention **REMEMBER: a ct must be smjx over claim!! → look to diversity, alienage, FQ first - THEN try supp jx
What is a intervention?
Intervention= absentee wants to join a pending suit Can choose whether to intervene as a π or ∆& the court can realign her if she came in on the wrong side. Application to intervene must be “timely” TYPES 1) Intervention of right – must show that absentee’s interests may be harmed if she is not joined & not adequately represented now 2) Permissive intervention - A’s claim or defense & the pending case have at least one common question Court has discretion to allow intervention **REMEMBER: a ct must be smjx over claim!! → look to diversity, alienage, FQ first - THEN try supp jx
What is a interpleader?
Interpleader= one holding money or property (“stakeholder”) wants to force all potential claimants into a single lawsuit to avoid multiple litigation & the threat of inconsistent results Ct. may issue injunction stopping parties from litigating ownership question in another court. TYPES 1) Rule Interpleader – (1) Complete diversity (stakeholder must be diverse from every claimant); (2) AIC = $75k+; (3) regular service of process; (4) regular venue rules 2) Statutory Interpleader – (1) Minimal diversity (1 claimant must be diverse from 1 other claimant - don’t even look at the stakeholder’s citizenship); (2) AIC = $500 or more; (3) Nationwide service of process; (4) venue lies in a district where any claimant resides Easier std
What are the reqs for a class action?
STEP 1: must meet the following 4 reqs (1) Too numerous for practicable joinder (2) Some questions of law or fact in common to the class (3) Rep’s claims/defenses typical of those of the class (4) Representative will fairly & adequately represent class STEP 2: must fit w/in one of these 3 types of actions (1) Prejudice - class treatment necessay to avoid harm to class members or to opposing party (numerous claimants to a fund would deplete) (2) Injunction or declaratory judgment (not damages) sought b/c class members were treated alike by the other party (e.g. employment discrim.) **(3) Damages - (i)common questions “predominate over individual questions”;and (ii) class action is the superior method for resolving the dispute (e.g. mass tort)
What actions does a ct take in a class action?
1) The ct must determine “at any early practicable time” whether to CERTIFY the case to proceed as a class action 2) The ct must appt class counsel 3) In a damages type class (ONLY), the ct must notify (often by mail, paid for by class rep) all reasonably identifiable members, telling them various things, including: can opt out; binding effect of a class judgment on class members; AND can enter a separate appearance through counsel. 4) All members of the class are bound, EXCEPT those who opt out of the damage type class (NOTE: there is NO right to opt out of a “prejudice” or “injunction” class) 5) Parties can dismiss OR settle a certified class action ONLY w/ ct approval
How do you show smjx w/ class action?
Needs smjx and can be based on: Fed Q Diversity (based on representative) i.e. Rep’s diverse from all ∆s (class members irrelevant) & Rep’s claim is $75k+ ——— Class Action Fairness Act – contains a grant of smjx separate from regular diversity Federal smjx if: Any class member is diverse from any ∆ (minimal diversity) 100 class members or more Aggregate amount in controversy exceeds $5M
What is the complete diversity rule?
Diversity jx requires COMPLETE diversity between the ALL πs & ALL ∆s Citizenship= domicile Natural person = presencein the state at some pointPLUSintent (subjective)to make that state your permanent or fixed home Can have ONLY 1 domicile Corporation = domicile of (1) state of incorporation; AND (2) principal place of business (“nerve center”) Can have MORE than 1 domicle Unincorporated associations (partnerships, etc) = domicile of ALL states of constituent members/partners Can have MORE than 1 domicile ————— US citizen & permanent resident - citizen of state where domiciled US citizen domiciled abroad - NOT a citizen of a state (NO diversity w/ US citizen & NO alienage) NO: π (US domicile in canada) vs. ∆ (citizen of france) NO: (US domicile in canada) vs. ∆ (domicile of NY) Decedents, minors, and incompetents - look to citizenship of the person being represented (NOTthe citizenship of rep.) NOTE: Parties must be diverse when the claim is FILED IRRELEVANT if not diverse when issue arose IRRELEVENT if not diverse after case is filed
What is the necessary amount in controversy AND how do you calculate the amount?
You need AT LEAST $75,000.01 NOT including interest/costs of litigation Valid unless it is “clear to a legal certainty” that P cannot recover $75k+ Ultimate recovery amount IRRELEVANT to jurisdiction (it could be $5) NOTE: if π recoveres LESS that $75k, then she MAY have to pay ∆’s litigation (even tho she won!) ———— Aggregation = π adds 2 or more claims to meet AIC If 1 π vs. 1 ∆, can be unrelated & no limit to # of claims aggregated CANNOT aggregate unrelated claims for 2+ ∆s, BUT you can for 2+ JOINT tortfeasors ———— Value of injunction (discuss both viewpts on exam): 1) Majority view (π’s viewpoint) - does conduct hurt π by more than $75,000? 2) Minority view (∆’s viewpoint) - would it cost ∆ more than $75,000 to comply with the injunction?
What types of cases are excluded EVEN IF diversity reqs. are met?
Federal courts will not hear cases involving: 1) issuance of a divorce, alimony or child custody decree 2) probate of a decedent’s estate.
What is the Erie DoctrineAND how does it work?
RULE: “In DIVERSITY CLAIMS (or supp jx claims), federal court must apply state substantive law” STEP 1: If federal law on point & directly conflicts w/ state law →apply fed. law as long as it is valid NOTE: FRCP are ALWAYS applied STEP 2: No federal law on point: ask if state law is one of the following→ apply it, if so Elements of a claim/defense SOLs Rules for tolling SOL Conflict (or choice) of law rules STEP 3: if not valid per STEP 2, ask: Would ignoring state law be outcome determinative? YES →apply state law Balance of state and federal interests in having their rule applied Is there a risk of forum shopping by applying federal law