Joinder Flashcards
Permissive Joinder of Parties
Under Rule 20, a P is permitted in certain circumstances, to join other (1) Ps, and/or (2) Co-Ds
- (1) Joining additional Ps
- — relies on their willingness to join
- (2) Joining additional Ds
- — lies in hands of P asserting the claim
Requirements — Permissive Joinder is Allowed Where:
- (1) Party asserts / has had asserted against them a claim arising from Same T/O as P’s claim
- Ps — may be joined if they assert a right to relief arising out of Same T/O as P’s claim
- Co-Ds — may be joined if right to relief asserted against them arises from Same T/O as P’s claim
- (2) There is at least one common question of law or fact in the joined parties’ claims or claims against them
- Ex — after bus accident, all injured passengers and bystanders join as Ps
- common issue is driver’s negligence
- other issues (e.g., damages) are tried individually for each P
- Ex — after bus accident, all injured passengers and bystanders join as Ps
- Must be SMJ for each claim
- Court has wide discretion to order separate trials where joinder would be unfair to a party not sufficiently involved in all the claims.
Distinguish From Impleader
- Impleader under Rule 14(a) involves permissive joinder by D
- Whereas Rule 20 involves permissive joinder by P
Compulsory Joinder of Parties
Necessary / Indispensable
I – Necessary Party?
- Non-parties (absentees) may be forced to join a case if they are deemed necessary parties
II – Feasible to Join? Requirements to be Joined as Necessary Party
- Can necessary party actually be joined?
- If Yes — If feasible, court will order joinder of the absentee (necessary party)
III – Indispensable?
- Is necessary party “indispensable”?
- If necessary party can’t be joined, should case proceed without him, or be dismissed (bcas he is indispensable)?
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I – Necessary Party?
Absentees are necessary when they meet one of three tests:
- (1) Without absentee, court cannot grant complete relief among existing parties,
- Consider whether multiple suits might follow if absentee is not made a party
2/3 — Looks to Harm Resulting to Absentee / Parties — Because of Nature of Absentee’s Legal Interest
- (2) Harm to Absentee
- Absentee has an interest that may be impaired or impeded if he is not made a party, or
- (3) Harm to Party, usually a D (Multiple / Inconsistent Rulings & Obligations)
- Absentee has an interest that creates a risk of multiple or inconsistent rulings & obligations is he is not made a party
Joint tortfeasors are never necessary
Example:
- A hold 1000 shares of stock in XYZ Corp. P claims that he and A bought the stock jointly and that he paid for half the stock. P sues XYZ Corp., seeking to have A’s stock canceled and the stock reissued in the joint names of P and A
- A is a necessary party. All three tests are met. Test three is the strongest. If P wins, A’s stock will be canceled.
II – Feasible to Join? Requirements to be Joined as Necessary Party
Absentee can be joined as necessary party if:
- (1) There is PJ over the absentee, and
- (2) Joining the absentee will not destroy Diversity
III – Indispensable?
Court looks the following factors:
- (1) Is alternative forum available?
- (2) What is likelihood of prejudice to parties or others if case goes forward?
- (3) Can court shape potential relief to avoid prejudice?
- (4) Would P have an adequate remedy if case dismissed?
Impleader (Third Party Practice)
D (TPP) can join a non-party (TPD)
for D’s liability in claim he is defending against original P
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Requirements & Procedure
When can D (TPP) Implead
- D (TPP) is liable to original P — and TPD (non-party) is / might be liable to D (TPP) for alI / part of his claim against original P
- Indemnity — shifts liability completely — TPD must cover the full claim
- Contribution — shifts liability pro-rata — TPD must cover a pro-rata portion of the claim
- D’s claim under impleader must be derivative
- D (TPP) can’t claim that TPD is solely liable to P
Procedure
- (1) D files third-party complaint against TPD
- (2) D serves process on TPD
Timing
- D has absolute right to implead TPD within 14 days after serving answer
- After 14 days, D must get permission from court
Jurisdiction Requirements
- PJ over impleaded party
- SMJ — there will generally be Supp Jxd
- x Venue x — venue need not be proper for TPD
Additional Claims Involving TPD (other than original ones by D) — once TPD is joined
-
Asserted by TPD
- may make claims of his own against other parties as long as they have SMJ
- SMJ will usually exist through Supp Jxd
- Against orig P — if they arise from Same T/O as underlying case (P’s original claims against D/TPP)
- may make claims of his own against other parties as long as they have SMJ
-
Asserted by Original P
- may assert claims against TPD — if they arise from Same T/O as underlying case (P’s original claims against D/TPP)
-
Asserted by D (TPP)
- may join other (non-indemnity or non-contribution) claims he may have against the TPD if they have SMJ
Severance of Third-Party Claims
Even if Jxd exists, the court may sever any third-party claim to be tried separately if it is just to do so — e.g., if addition of those claims would lead to unfair prejudice to one of the parties
P (CA) sues D (NY) in Fed Court for $100k, invoking Diversity
D impleads TPD (CA) for indemnification of the full $100k.
SMJ over the impleader claim?
Yes — Diversity Jxd
- It doesn’t matter that P and TPD are from the same state (P is not a party to this claim)
If P (CA) asserts a non-FQ claim against TPD (CA)
- No diversity
- No Supp — this would be a claim by a P
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D (TPP) can join a non-party (TPD)
for D’s liability in claim he is defending against original P
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Requirements & Procedure
When can D (TPP) Implead
- D (TPP) is liable to original P — and TPD (non-party) is / might be liable to D (TPP) for alI / part of his claim against original P
- Indemnity — shifts liability completely — TPD must cover the full claim
- Contribution — shifts liability pro-rata — TPD must cover a pro-rata portion of the claim
- D’s claim under impleader must be derivative
- D (TPP) can’t claim that TPD is solely liable to P
Procedure
- (1) D files third-party complaint against TPD
- (2) D serves process on TPD
Timing
- D has absolute right to implead TPD within 14 days after serving answer
- After 14 days, D must get permission from court
Jurisdiction Requirements
- PJ over impleaded party
- SMJ — there will generally be Supp Jxd
- x Venue x — venue need not be proper for TPD
Additional Claims Involving TPD (other than original ones by D) — once TPD is joined
-
Asserted by TPD
- may make claims of his own against other parties as long as they have SMJ
- SMJ will usually exist through Supp Jxd
- Against orig P — if they arise from Same T/O as underlying case (P’s original claims against D/TPP)
- may make claims of his own against other parties as long as they have SMJ
-
Asserted by Original P
- may assert claims against TPD — if they arise from Same T/O as underlying case (P’s original claims against D/TPP)
-
Asserted by D (TPP)
- may join other (non-indemnity or non-contribution) claims he may have against the TPD if they have SMJ
Severance of Third-Party Claims
Even if Jxd exists, the court may sever any third-party claim to be tried separately if it is just to do so — e.g., if addition of those claims would lead to unfair prejudice to one of the parties
Intervention
- Non-party absentee may seek to join (i.e., intervene) in an already pending suit, either as a P or D
- court may realign parties
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Intervention as a Right
Must be allowed if either:
- (1) Absentee’s interest will be harmed if not joined and no existing party will adequately represent that interest, or
- Same as prong two for necessary party
- (2) Absentee has an unconditional statutory right
Permissive Intervention
Allowed in court’s discretion if Absentee either:
- (1) has a claim or defense that shares a common question of law with the underlying action,
- (2) has a conditional statutory right, or
- (3) is a govt. officer or agency and an existing claim or defense relates to officer/ agency or a statute, regulation, etc.
Court will refuse consider whether intervention will unduly delay or prejudice adjudication of original parties’ rights
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SMJ
- Problem in Diversity
- Intervener is a P — thus in Diversity cases:
- interveners must establish independent SMJ
- Supp Jxd will not cover diversity intervention
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Intervention vs. Compulsory Joinder
- Compulsory Joinder — forces absentee into suit; narrow; must be very necessary for court to force absentee into case
- Intervention — lets absentee join suit voluntarily — more lenient
Interpleader
Interpleader allows a property holder to initiate a suit to compel multiple claimants to that property to litigate the dispute. It applies if separate actions might result in double liability against the stakeholder.
- Property Holder = Stakeholder
- Other parties who want the property = Claimants
Fed law has abolished the common law requirements that the stakeholder must admit liability to the proper claimant and that the claims have a common origin.
Rule 22 Interpleader
- Complete Diversity Required — stakeholder must be diverse from all claimants; amount in controversy must exceed $75k
- Service of Process & Venue requirements are same as any other federal case
Statutory Interpleader
- (Minimal) Diversity Req — one claimant must be diverse from at least one other claimant
- Amount in controversy must exceed $500
- Nationwide Jxd — service is proper on anyone in the U.S.
- Venue is proper in any district where any claimant resides
