Joinder Flashcards
What is Joinder
Joinder rules define the scope of how many parties and claims can be joined in one case.
Two things must be trust for joinder: (1) joinder must be allowed by federal rules and (2) there must be subject matter jurisdiction over each claim
Claim Joinder by Plaintiff
A plaintiff may join any additional claim she has against the adverse party, even if the additional claim is unrelated - so long as there is subject matter jurisdiction
what is compulsory joinder and the steps
In certain situations, a plaintiff must join all interested parties or face dismissal of the lawsuit.
Analysis of compulsory joinder follows a three step process:
1) is the absentee necessary or required?
2) if the absentee is necessary, can the absentee be joined?
3) if the absentee can’t be joined, can the case proceed in his absence?
Is the Absentee Necessary?
An absentee is necessary if one of the following is satisfied:
a) without the absentee, the court cannot accord complete relief among existing parties
b) the absentee’s interest may be harmed if she is not joined (most likely on exam)
c) the absentee claims an interest that subjects a party to a risk of multiple obligations
A joint tortfeasors necessary parties?
Joint tortfeasors will never be considered a necessary party
Can the Absentee Be Joined?
Joinder is feasible if:
1) there is personal jurisdiction over the absentee; and
2) there will be federal subject matter jurisdiction over the claim by or against the absentee
Personal Jurisdiction Exception in compulsory Joinder
If the absentee is served within a district of the US not more than 100 miles from where the summons was issued, there is personal jurisdiction over the absentee regardless of contacts with the forum.
Should the action proceed without the Absentee?
If the absentee cannot be joined, the court must decide whether the action should proceed or be dismissed (if dismissed the absentee is regarded as indispensable)
Factors the Court will consider:
- is there an alternative forum available
- What is the actual likelihood of harm to the absentee?
- Can the court shape relief to avoid harm to the absentee?
Types of claim joinder by a defendant
Counterclaims (permissive and compulsory)
Cross Claims
What is a counterclaim
A counterclaim is a claim against an opposing party
A counterclaim is part of the defendant’s answer
NOTE: once a counterclaim is served, the plaintiff must respond under rule 12 within 21 days of service of the counterclaim
Compulsory Counterclaims
A compulsory counterclaim is one that arises from the same transaction or occurrence as the plaintiff’s claim
Unless already filed in another case, the counterclaimant must file the compulsory counterclaim in the pending case or it is waived (must be filed in the answer)
Permissive Counterclaims
A permissive counterclaim is one that does not arise from the same transaction or occurrence as the plaintiff’s claim (not required to file)
However, there must be subject matter jurisdiction over any permissive counterclaim
Crossclaim
A cross claim is a claim against a co-party
To assert a crossclaim, the claim must arise from the same transaction or occurrence as the underlying action
Crossclaim are not compulsory (permissive)
once a crossclaim is filed, the parties become adverse - further claims between the parties constitute counterclaims
What is Impleader
an impleader claim (third party claim) is one where a defending party brings in a new party
Party bringing the claim - third party plaintiff
party being brought in - third party defendant
When can Impleader be Used
A defendant party may implead a nonparty only if the nonparty may be liable to the defendant for any part of a judgment that the plaintiff may recover against the defendant (normally in the form of indemnity or contribution)
impleader is permissive - defendant is not required to bring the claim in the current case
Process for impleading a third party defendant
To implead a third party defendant, the defendant must:
1) file a third party complaint naming the third party defendant; and
2) have that complaint formally served on the third party defendant
Timing:
- there is a right to implead within 14 days of the defendant serving the answer
- after the 14 days expire, court permission is needed
Claims by third party defendant and plaintiff
After the third party defendant is joined, the plaintiff may assert claims against the third party defendant, and the third party defendant may assert claims against the plaintiff, that arise out of the same transaction or occurrence as the underlying case.
Subject Matter and Venue for Impleader
The court must still have subject matter jurisdiction over the impleader claims
venue need not be proper to the third party defendant
Personal Jurisdiction Exception for Impleader
Like an absent party, there is personal jurisdiction over an impleaded party if he is served in a district in the US and not more than 100 miles from the federal court that issued the summons.
If not there must be traditional contacts based personal jurisdiction.
what is Intervention
a nonparty absentee may use intervention to bring herself into the case either as a plaintiff or defendant
Intervention of Right
Intervention is of right if the absentee’s interest may be harmed if she is not joined, and that interest is not adequately represented by the current parties
Permissive Intervention
Permissive intervention is available when the applicant’s claim or defense has at least one common question of law or fact with the action
- it is discretionary with the court
- it must be supported by own jurisdictional grounds
what is Interpleader
interpleader permits a person in the position of a stakeholder to require two or more claimants to litigate among themselves to determine which has a valid claim
this is an attempt to avoid double liability by the stakeholder
Rule 22 Interpleader
Requires (1) complete diversity between the stakeholder and all adverse claimants and in excess of $75,000, and ()2) a federal question claim
NOTE - normal service and venue rules apply
Statutory Interpleader
Requires only diversity between any two claimants and $500 be in issue
NOTE - service may be nationwide and venue is proper where any claimant resides
What is a class action
an action in which representatives sue on behalf of a group
Requirements to qualify for a class action
to qualify for a class action, all of the following must be demonstrated:
1) Numerosity - the class is so numerous that joinder of all members is impracticable
2) commonality - there must be some question of law or fact common to all class members
3) typicality - the representative’s interests are typical of the class
4) Representative Adequate - the named representative will ensure fair and adequate representation of the class members
NOTE: once meeting these requirements, the action must still fall within one of the types of class actions
Types of Class Actions
After satisfying the requirements for class actions, the action must falls within one of the three types
1) Prejudice - Class treatment is necessary to avoid prejudice to the class members or non-class members or inconsistent results
2) Injunctive or Declaratory Relief - A defendant has acted or refused to act on grounds applicable to the class and the class seeks an injunctions or declaratory relief
3) Common Question/Damages - there is a common question of fact or law to the class that predominate over individual questions, and the class action is a superior method to handle the dispute
Certification of Class Action
A case is not a class action until the court grants a motion to certify it as a class action
Upon certification, the court must
1) define the class and the class claims, issues, or defenses; and
2) appoint class counsel, who must fairly and adequately represent the interests of the class
Appeal of Certification of Class
However the court rules on certification, the losing party may seek a review from court of appeals in the discretion of the court of appeals
Notice to Class Members
In a common question/damages action, the court must notify the class members that they are in a class (normally by mail to all reasonably identifiable members)
Notice is paid by the representative and tell the members:
1) they can opt out
2) they will be bound by the judgment if they don’t opt out
3) they can enter a separate appearance through counsel
NOTE - notice is not required for the other two types of class actions
Binding Effect of Class Actions
- There is no right to opt out of a prejudice or injunctive class action which means all members are bound
- all members in a common question/damages action are bound unless they opt out
Settlement of a Class Action
The court must approve the dismissal or settlement of class actions
The court must give notice to the class member of dismissal or settlement to get their feedback on whether the case should be settled or dismissed
In a common question/damages action, the court might refuse to approve settlement unless members are given a second chance to opt out
Subject Matter Jurisdiction in Class Actions
Federal Question jurisdiction may be used
For diversity cases, only the citizenship of the representatives is considered and the representative’s claim must exceed $75,000
Class Action Fairness Act (CAFA)
CAFA grants subject matter jurisdiction if:
1) there are at least 100 members
2) any class member (not just the rep) is of diverse citizenship of any defendant; and
3) the aggregated claims of the class exceed $5 million
Removal Under CAFA
if the CAFA requirements are met, any one defendant, even an in-state defendant, may remove the case from state to federal court
