Joinder of Claims and Parties

Question 1

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What is joinder?

Answer 1

Procedures that allow multiple claims and parties to be combined into one lawsuit

Question 2

What two categories do joinder rules fall into?

Answer 2

1. Permissive Rules: which give the litigant the option of joining parties and claims in a single lawsuit
2. Mandatory Rules: which require a litigant to do so

Question 3

What is Real Party in Interest?

FRCP 17

Answer 3

Actions that must be prosecuted in the name of the real party in interest.

This is to foreclose duplicative lawsuits, to assert all defenses in one action, and to avoid prejudice

Question 4

What two concepts are relevant to determine who may sue or be sued?

Answer 4

1. Capacity: the ability of a party to enforce rights or to be sued by others which are designed to protect a party by ensuring the party’s interests are adequately represented
2. Standing: a constitutional requirement under Article III of the United States Constitution for actions in federal court focuses on who may invoke the power of the Court to redress injury

Question 5

What is Permissive Joinder of Claims by Plaintiffs under Federal Rule 18?

FRCP 18

Answer 5

In general, a party asserting a claim, counterclaim, crossclaim, or third-party claim may join, as independent or alternative claims, as many claims as it has against an opposing party

Question 6

What are counterclaims?

Answer 6

This allows a defendant to reduce the plaintiff’s recovery in certain facts that might show an independent action against the plaintiff.

Claims did not have to be similar but had to involve the same “subject matter” or arise out of the “same transaction”

Question 7

What is a compulsory counterclaim?

FRCP 13(a)

Answer 7

Pleading must state as a compulsory counterclaim any claim that at the time of service the pleader has against an opposing party that arises out of the same transaction or occurrence that is subject to the plaintiff’s claim

Question 8

What is permissive counterclaim?

FRCP 13(b)

Answer 8

A pleading may state as a counterclaim against an opposing party any claim that is not compulsory

Question 9

What are the different tests to determine whether a claim arises out of the same “transaction or occurrence”?

Answer 9

1. Are the issues of fact and law raised by the claim and counterclaim largely the same?
2. Would res judicata bar a subsequent suit on the defendant’s claim absent the compulsory counterclaim rule?
3. Will substantially the same evidence support or refute plaintiff’s claim as well as defendant’s counterclaim?
4. Is there any logical relation between the claim and counterclaim?

Question 10

According to the appellate courts, when is a claim compulsory?

Answer 10

A counterclaim is compulsory if it has a “logical relationship” to an opposing parties claim.

Counterclaim is related if separate trials would involve substantial duplication of effort and time by the parties and courts.

Question 11

What is supplemental jurisdiction?

28 U.S.C. § 1367

Answer 11

Some circuits hold that supplemental jurisdiction may be exercised over any counterclaim, whether permissive or compulsory, that is so logically related to the claim over which original jurisdiction exists as to form one controversy or case

Question 12

What are the consequences of failing to plead a counterclaim?

Answer 12

Unasserted compulsory counterclaims cannot be raised in a subsequent suit in federal court

Question 13

What is a Crossclaim against a coparty?

FRCP 13(g)

Answer 13

Pleading may state as a crossclaim any claim by one party against a co-party if the claim arises out the transaction or occurrence that is the subject matter of the original action or of a counterclaim, or if the claim relates to any property that is the subject matter of the original action

Question 14

What is Permissive Joinder of Parties (Persons who may join or be joined)?

FRCP 20(a)

Answer 14

Persons nay join in one action as plaintiffs if:
1. they assert any right to relief jointly, severally, or in the alternative with respect to or arising out of the same transaction, occurrence, or series of transactions or occurrences; or
2. any question of law or fact common to all plaintiffs will arise in the action

Question 15

What are the protective measures of Permissive Joinder of Parties?

FRCP 20(b)

Answer 15

The court may issue orders-including an order for separate trials-to protect a party against embarassment, delay, expense, or other prejudice that arises from including a person against who the party asserts no claim and who asserts no claim against the party

Question 16

What two specific requisites to the joinder of parties does FRCP 20(b) impose?

FRCP 20(b)

Answer 16

(1) a right to relief must be asserted by, or against, each plaintiff or defendant relating to or arising out of the same transaction or occurrence or series of transaction or occurrences; and
(2) some question of law or fact common to all the parties must arise in the action

Question 17

What is Misjoinder and Nonjoinder of Parties?

FRCP 21

Answer 17

Misjoinder of parties is not grounds for dismissing an action. On motion or on its own, the court may at any time, on just terms, add or drop a party. The court may also sever any claim against the party

Question 18

What is consolidation?

FRCP 42(a)

Answer 18

If actions before the court involve a common question of law or fact, the court may
(1) join for hearing or trial any or all matters at issue in the actions;
(2) consolidate the actions; or
(3) issue any other orders to avoid unnecessary cost or delay

The Court held that consolidated cases retain their independence for purposes of finality and appealability.
Consolidation is limited to actions pending in the same district

Question 19

What happens to consolidation cases pending in different districts?

Answer 19

Cases that share common questions of fact may be consolidated by the Judicial Panel on Multidistrict Litigation and transferred to a single district as provided for under 28 U.S.C. § 1407

*Subject matter jurisdiction must be present

Brings them together for pretrial then sends them back

Question 20

What does consolidation under § 1407 aim to do?

Answer 20

Eliminates duplication in discovery, avoids conflicting rulings and schedules, reduce litigation costs, save the time and effort of the parties, the attorneys, the witnesses, and the courts, and stimulates settlements in cases

Question 21

What is Joinder, persons required to be joined if feasible?

FRCP 19

Answer 21

A person who is subject to service of process and whose joinder will not deprive the court of subject matter jurisdiction must be joined as a party if:
(A) in that person’s absence, the court cannot accord complete relief among existing parties; or
(B) that person claims an interest relating to the subject of the action and is so situated that disposing of the action in the person’s absence may: (1) impair or impeded the person’s ability to protect the interest; or (2) leave an existing party subject to a substantial risk of incurring double, multiple, or otherwise inconsistent obligations because of the interest

Question 22

What happens if an absent person is affected by a final decree? (Provident Tradesmens Bank & Trust Co. v. Patterson)

Answer 22

The court must consider whether the absent party is a necessary party or an indispensable party.
Necessary: the court can move forward with the decree as it might not affect the person as much
Indispensable: the court must dismiss the case if the person will be severely affected

Question 23

What is an impleader?

FRCP 14(a)

Answer 23

A defending party may, as a third-party plaintiff, serve a summons and complaint on a nonparty who is or may be liable to it for all or party of the claim against it. But the third-party plaintiff must, by motion, obtain the court’s leave if it files the third-party complaint more than 14 days after serving its original answer

Question 24

What is Third-Party Practice under Rule 14?

FRCP 14

Answer 24

Under FRCP 14, the original defendant has a right to use this rule to hold a thirf-party liable for damages alleged against the defendant. (Jeub v. B/G Foods, Inc.)

Permits a defending party to add a party who is or may be liable for all or part of the claim against it (The liability must be derivative of the original claim)

Question 25

What is an interpleader by plaintiff in Federal Courts?

FRCP 22(a)(1)

Answer 25

Persons with claims that may expose a plaintiff to double or multiple liability may be joined as defendants and required to interplead. Joinder for interpleader is proper even though:
(A) the claims of the several claimants, or the titles on which their claims depend, lack a common origin, or are adverse and independent rather than identical; or
(B) the plaintiff denies liability in whole or in part to any or all the claimants

Interpleader under Rule 22 is subject to the usual rules of venue and jurisdiction

Question 26

What is an interpleader by defendant in Federal Courts?

FRCP 22(a)(2)

Answer 26

A defendant exposed to similar liability may seek interpleader through a crossclaim or counterclaim

Interpleader under Rule 22 is subject to the usual rules of venue and jurisdiction

Question 27

What is Persons Whom Depositions may be taken?

FRCP 28(a)(1)

Answer 27

Within the United States, a deposition must be taken before:
(A) an officer authorized to adminster oaths either by federal law or by the law in the place of examination; or
(B) a person appointed by the court where the action is pending to administer oaths and take testimony

Question 28

What is an interpleader under 28 U.S.C. § 1335?

28 U.S.C §1335

Answer 28

The district courts shall have original jurisdiction of any civil action of interpleader or in the nature of interpleader filed by any person, firm, or corporation, association, or society having in his or its custody or possession money or property of the value of $500 or more

Question 29

What is interpleader under 28 U.S.C. §1397?

28 U.S.C. § 1397

Answer 29

Any civil action of interpleader or in the nature of interpleader under §1335 of this title may be brought in the judicial district in which one or more of the claimants reside

Question 30

What is the process and procedure of interpleader?

28 U.S.C. §2361

Answer 30

A district court may issue its process for all claimants and enter its order restraining them from instituting or prosecuting any proceeding in any State or United States court affecting the property, instrument, or obligation involved in the interpleader action until further order of the court

Such district court shall hear and determine the case, and may discharge the plaintiff from further liability, make the injunction permanent, and make all appropriate orders to enforce its judgment

Question 31

What does an interpleader essentially do?

Answer 31

Enables a party who might be exposed to multiple claims to money or property under the party’s control to settle the controversy in a single proceeding

i.e., a person who comes into money and they know others might have rights to it-so this person starts an interpleader action in federal district court, puts the money in escrow, and the court will determine who the money goes to

Question 32

What does an interpleader under § 1335, § 1397 and § 2361 allow?

Answer 32

Permits the venue to be laid in any judicial district in which one or more of the claimants reside; allows for nationwide service of process; and provides for a federal forum when the state is worth $500; and there is diversity of citizenship between two or more claimants (minimal diversity)

This does not apply to Rule 22

Question 33

What is intervention of right?

FRCP 24(a)

Answer 33

On a timely motion, the court must permit anyone to intervene who:
(A) federal statutes can allow an agency to intervene because they may have an interest in the case; or
(B) if they have a legitimate interest in the present matter

This differs from joinder in the respect that this rule allows a stranger to interject themselves into the action

Question 34

What is permissive intervention?

FFRCP 24(b)

Answer 34

On timely motion, the court may permit anyone to intervene who:
(A) is given a conditional right to intervene by a federal statute; or
(B) has a claim or defense that shares with the main action a common questions of law or fact

This differs from joinder in the respect that this rule allows a stranger to interject themselves into the action

Question 35

What does a putative intervenor have?

Answer 35

It does not have an interest not adequately represented by a party to a lawsuit simply because it has a motive to litigate that is different from the motive of an existing party

So long as the party has demonstrated sufficient motivation to litigate vigorously and to present all colorable contentions, a district judge does not exceed the bounds of discretion by concluding that the interest of the intervenor are adequately represented (Natural Resources Defense Council, Inc. v. New York State Department of Environmental Conservation

Question 36

When is intervention of right satisfied?

Answer 36

if the applicant shows that representation of his interest may be inadequate and the burden of making that showing should be treated as minimal

Question 37

What does the Supreme Court hold with regards to intervention?

Answer 37

A party seeking to intervene as of right must have standing, “when it seeks additional relief beyond which the plaintiff requests.”