Joinder 2: Class Actions, Interplead/Intervention Flashcards
Rule 22 is about
interpleaders
22(a)(1)
Persons with claims that may expose a P to double or multiple liability may be joined as Ds and be required to interplead
22(a)(2)
A defendant exposed to similar liability may seek interpleader through a crossclaim or counterclaim
Interpleading applies when
exposure to multiple liability AND/OR incompatible court orders
Interpleader is used to figure out ___
who has the superior claim to sue someone
Interpleader allows a P or D to initiate a lawsuit to –
compel other parties to litigate a dispute , have property that is another’s but don’t know to whom it should be transferred
Interpleader often applies to resolve disputes under __
insurance contracts
Stakeholder in interpleader is
when normally D becomes P
Stake is the ___
subject of claims between adverse claimants who would normally be Ps
For interpleaders, the adverse claimants must be ..
demanding the same thing
Example of interpleader: life insurance policy and dispute among proper beneficiaries
to resolve dispute, insurance company files interpleader, they are stakeholder, adverse claimants are people who might be beneficiaries
Rule 24 is about
intervention
24(a) is about
Intervention as of Right
24(a)
Court must permit anyone to intervene who is given the unconditional right by federal statute or interest relating to subject of the action so that disposing of it may impair or impede the movant’s ability to protect its interest unless existing parties adequately represent that interest
24(b) is about
permissive intervention
24(b)
court may permit anyone to intervene who is given a conditional right by fed statute or has a claim or defense that shares aquestion of law or fact with the main action
Permissive intervention is up to __
judicial discretion
24(b)(3)
delay or prejudice. Court must consider whether intervention will unduly delay ore prejudice adjudication of original parties’ rights
Courts normally permit parties to be ___ intervenor
“silent”
NIPSCO is about
intervention criteria, atypical R24 outcome
NIPSCO rule
To intervene as a right, must show timely application, direct signifcantly protectable interest, disposition may impede ability to protect that interest and interest not adequately represented by existing parties
NIPSCO facts
Save Dune council filed to intervene saying stake in protecting and preserving the land for public use
NIPSCO holding
reject motion to intervene because no significant legally protectable interest so not required to permit
NIPSCO reasoning 1
Council doesn’t have claim to land, interest not term of art but defining it here
NIPSCO reasoning 2
permissive denied to avoid undue delay to OG parties (untimely because no automatic right but 4 years too long for permissive)
In class actions, individual class members lose..
control over their own claims in exchange for the benefits of collective action
Benefits of class actions
ability to bring suits inefficient in individual litigation or injunctions with large scale releif
Difference between other joinder and class actions
most P class members are absent from the litigation
Rule about class actions
23
23(a) is about
prerequisities for class actions (numerosity, commonality, typicality, adequacy)
23(a)(1)
class so numerous that joinder of all members is impracticable (numerosity)
23(a)(2)
questions of law or fact common to the class (commonality)
23(a)(3)
claims of the representative parties typical of the claims of the class (typicality)
23(a)(4)
representative parties will adequately protect the interests of the class (adequacy)
23(b) is about
types of class actions
23(b)(1)
limited fund for recovery
23(b)(2)
injunctive/equitable relief, no opt our so no notice, class constantly changing but okay because about the system
23(b)(3)
money damages
23(c)
Class action can be maintained with respect to particular issues or divided into subclasses when appropriate
To certify a class action, you must meet ..
all requirements under 23(a) and requirements for one category under (b)
A 23(b)(2) class is typically
civil rights or systemic injunctive relief case
23(b)(2) class ____ notice to all members
does not require
For 23(b)(2) final injunctive relief msut be __
appropriate to class as a whole
For 23(b)(3) class, members have the option ___
to opt out, non-mandatory
For 23(b)(3) class, members must show ___
predominance (issues common to the class predominate over the individual issues) and superiority (superior method for adjudicating)
Factor 1 to consider in b3 class
class member interest in litigating individually
Factor 2 to consider in b3 class
extent and nature of litigation by class members already going on
Factor 3 to consider in b3 class
desirability of concentrating litigation in the particular forum
Factor 4 to consider in b3 class
likely difficulties of managing the class action
Justifications for Class Action
global peace, consistency, individual rights, deterrence, efficiency
Plaintiff benefits of class actions
can bring where remedy not enough for individual litigation, ability to reform institutions with injunctive releif
Plaintiff cons of class action
lose control over claims, b3 can bind absent parties so raises due process concerns
Defendants pros of class action
settle all claims at once, finality/Global Peace precluding all future litigation
Defendant cons class action
Ds significant pressure to settle regardless of merits because of the cost
Hansberry is about
class members cannot bind parties with opposing interests
Hansberry rule
Due process requires absent members only bound if interests adequately represented in prior action
Hansberry reasoning 1
P is successor of covenant but conflict of interest that is objective and mutually exclusive
In general res judicata covers __
erroneous as well as correct decisions because must be an end of litigation
Hansberry 2
due process puts some boundaries on procedure, always in the background
Hansberry 3
adequacy is a constitutional requirement
Hansberry 4
collateral attack allowed to question validity of class certification
Hansberry 5
R23 deals with this by making class certification part of OG suit
Hansberry 6
trial court decision not binding unless same parties
Dukes is about
commonality issue for proposed 23(b)(2) class
Dukes rule 1
23(a)(2) commonality means same injury not just violation of same law. Claims must depend on common contention that may be resolved across the entire class
Dukes rule 2
23(b)(2)- claims for monetary relief (like backpay) may not be certified under this provision if monetary relief not incidental to injunctive or declaratory relief, otherwise must be b3
Dukes reason 1
Not just common Q but capacity to generate common answers (applies to all class actions regardless of type)
Dukes reason 2
Walmart had explicit anti-discrimination policy and managers had discretion over pay and promotions, impossible to believe all would use same way
Dukes reason 3
B2 only for injunctions because binds all class members
Ginsburg Dukes dissent
Court using 23(b) concerns to decide if could be certified under (a), delegation of discretion to managers uniform policy and actionable if discriminatory outcomes
Other way if can’t certify class
MDL, no real commonality requirement
What if Walmart was B3 class
giving notice where begging Q becomes issue, can say all women workers between these dates can’t say all discriminated against, opt in class may satisfy commonality, all women who filed with HR a complaint may satisfy but same answer?
23(f)
interlocutory appeal, can appeal certification prior to final judgment
Why interlocutory appeal allowed for class action
certification decision determines case outcome
23(e)
any settlement must be approved by court as fair, reasonable and adequate
policy behind 23(e)
protects class against lawyers from colluding with Ds
23(g)
lawyer representing the class must show they can do so adequately (making decisions for whole class)
23(h)
lawyer must make motion for fees, court determines what would be fair
policy behind 23(h)
counsel may take advantage of class if could set own fees
Types of fees for class actions
percentage, lodestar basis
Under CAFA, to remove to federal court, ____
complete diversity replaced by minimal diversity
For CAFA, the amount in controversy for entire class must be __
at least 5 million
