Joinder Flashcards
Can P bring unrelated claims against adverse party?
YES, as long as there’s SMJ over the claims
* Can aggregate the claim amounts to reach $75K for diversity jx as long as it’s SINGLE plaintiff against SINGLE defendant
If claims are brought by multiple plaintiffs or multiple defendants, what is required?
Claims must (1) arise from same transaction/occurrence and (2) raise at least one common question of law or fact
Compulsory Joinder
When are necessary and indispensable parties FORCED by the court to join a case?
(Usually on motion by D)
Court will join if absentee is necessary and joinder is feasible
(1) **Absentee is “necessary” if: **
* (a) Without absentee, court can’t accord complete relief among existing parties; or
* (b) Absentee’s interest might be harmed if not joined; or
* (c) Absentee claims interest that subjects a party (usually D) to a risk of multiple obligations
(2) Joinder is feasible if there is:
* Personal jx over absentee; and
* Federal SMJ over claim by/against absentee (court decides whether absentee will be P or D)
If joinder is NOT feasible, court will decide whether case should proceed or be dismissed depending on:
* If alternative forum is available (ex. state court)
* Actual likelihood of harm to absentee
* Whether court can shape relief to avoid harm to absentee
Joint tortfeasors are NEVER necessary
Absentee is actually “necessary” since case can still proceed without it; if the court however dismisses case bc absentee can’t be joined, absentee is called “indispensable”
Compulsory Joinder Review
What is a counterclaim?
Claim against an opposing party (usually D against P)
Compulsory Counterclaim: Claim that arises from same T/O as P’s claim MUST be filed in same case; otherwise, claim is waived
Permissive Counterclaim: Claim that doesn’t arise from same T/O may be filed but not required
Requires SMJ or supplemental jurisdiction
Counterclaim is part of defendant’s answer
* P must respond within 21 days of service of counterclaim
* * If case is dismissed before D answers, then D can still sue P (D’s claim isn’t barred by compulsory counterclaim rule)
What is a crossclaim? Is it compulsory?
Claim against a co-party that arises from same T/O as underlying action
NOT compulsory
Requires SMJ or supplemental jurisdiction
What is a proper third-party claim?
(Rule 14)
Defendant can assert a third-party claim against a nonparty who is or may be liable to it for all or part of the claim (against D)
* D must be seeking indemnification or contribution from third-party defendant
Requires SMJ or supplemental jurisdiction
It’s NOT a proper third-party claim if D is bringing it to show that he’s not liable and that the third party is instead (this is not a derivative claim)
Defendant becomes third-party plaintiff (TPP)
Third party becomes third-party defendant (TPD)
Indemnification: shifts liability completely and TPD covers full claim
Contribution: shifts liability pro-rata (TPD covers pro-rata portion of claim)
When and how must D bring third-party claim?
Timeline
(1) File third-party complaint naming TPD (within 14 days of serving answer)
* After 14 days, court permission is needed: D must make motion to serve the complaint, and trial court has discretion on whether to grant/deny motion (usually will grant if it’s early in proceedings)
(2) Formally serve complaint on TPD (service of process)
Impleader claim is PERMISSIVE (not required)
After TPD joined, plaintiff can assert claims against TPD and TPD can assert claims against P that arise out of same T/O as underlying case
What is intervention?
Where a NONPARTY absentee inserts itself into the case, either as P or D
* No clear deadline on when to intervene by
Intervention of Right
* Can join if intervening party’s interest may be harmed if it’s not jointed and its interest is not adequately represented by current parties
* Same as “necessary” test
Permissive Intervention
* Intervening party’s claim/defense has at least one common question of law or fact with pending case –> court has discretion on whether allow intervention
Requires SMJ or supplemental jurisdiction
Permissive intervention usually OK unless it’d cause delay or prejudice
Court can “realign” intervening party if it thinks it came on wrong side (came as P but should’ve been D)
What is interpleader?
(Rarely tested)
Interpleader suit allows a person/stakeholder to require 2+ adverse claimants to litigate among themselves to determine WHO has valid claim to suing person/stakeholder
* Occurs when there’s risk of double liability against stakeholder
Rule 22 interpleader: requires diversity jx (between stakeholder and adverse claimants) or federal question claim
Statutory interpleader: requires diversity between any contending claimants and $500 in issue
* Service may be nationwide; venue proper where any claimant resides
Ex. Insurance Company, a State A citizen, is unsure to which claimant it should pay $80,000 of life insurance proceeds, so it wants to file an interpleader action to have a court determine the issue. The company makes no claim to the insurance proceeds. All potential claimants to the life insurance policy are citizens of State B. Statutory interpleader is not available because no two contending claimants are diverse, but Rule 22 interpleader is available because complete diversity exists between the insurance company-plaintiff and all claimant-defendants, and the amount in controversy exceeds $75,000. If Insurance Company were to make a claim against the proceeds, most courts would hold that statutory interpleader would be available, as the insurance company would then be considered a contending claimant.
What are basic requirements for a class action?
(1) Numerosity
(2) Commonality
(3) Typicality
(4) Adequate representative
Court must CERTIFY class action for a case to actually become a class action suit
Class Action = a class representative sues on behalf of a group
(1) There are too many class members for joinder to be practical
(2) There is some issue in common to all class members; resolving that issue would give answers to everyone
(3) Class representative’s claims are typical of claims of the class
(4) Class rep will **fairly and adequately represent class*
What are the three categories of class action available?
Type 1: Prejudice (rare)
* Class treatment necessary to avoid harm/prejudice to class members or non-class party
Type 2: Injunctive or Declaratory Relief
* Class action seeks injunctive or declaratory judgment (bc D treats class members the same)
* P can’t seek damages
Type 3: Common Question or Damages (mass torts)
* (a) common questions predominate over individual questions and (b) class action is superior method to handle dispute
* Only type to require notice to class members
Type 1: Limited $$ in fund; claimants that sue later will get nothing.
Type 2: Employees claim employer illegally withholding vacation time; seeks injunction to require emp to provide it
Type 3: Bus crash injures 80 people; negligence of driver is common question that’ll predominate; one class action suit is better than 80 separate lawsuits
NO right to opt-out of Type 1 or Type 2 class action; all class members are bound by judgment.
Federal Class Action Requirements - Review
What must court do to certify case as class action?
(1) Grant motion to certify case as class action
(2) Define class, class claims, issues, or defenses; and
(3) Appoint class counsel (who’ll fairly/adeequately represent interests of class)
Can losing party seek review on certification motion from court of appeals?
Yes, losing party can seek review, but it’s discretionary with court of appeals
