Joinder of Parties and Claims

Question 1

Proper Parties (who may be joinded?)

Answer 1

Can if:

(1) claims arise from the same transaction or occurrence AND
(2) raise at least one common question

Then assess SMJ.

Question 2

Necessary Parties- is the absentee necessary?

Answer 2

yes if:

(1) without absentee, cannot accord complete relief among those already joined (worried about multiple suits)?;
(2) absentee’s interests will be harmed if he isn’t joined (practical harm); OR
(3) absentee claims an interest which subjects a party (usually a D) to possibility of multiple obligations

Joint tortfeasors are never necessary

Question 3

Necessary Parties- assess whether necessary party can be joined

Answer 3

This means (1) there is PJ over necessary party AND
(2) he can be joinded without messing up diversity

Question 4

If necessary party cannot be joined

Answer 4

Court has only two choices:
1- proceed without that party
2- dismiss the case

Balance these factors:

(1) is there an alternative forum available where everybody can be joined (maybe state court)?
(2) what is the real likelihood of harm to anybody if we proceed without that party?
(3) can the court do something to shape the order in the pending case to avoid such harm to that party?

Question 5

Compulsory counterclaims- definition

Answer 5

One that arises from the same transaction or occurrence as P’s claim

Question 6

compulsory counterclaims- when must they be filed?

Answer 6

with answer or else it is waived

Question 7

Permissive counterclaims

Answer 7

does not arise from same T/O as P’s claim

* the second circuit has even upheld supplemental jurisdiction over a permissive counterclaim if it has a “loose factual connection” with P’s claim*

Question 8

Counterclaims- steps

Answer 8

1- determine if it is compulsory or permissive

2- for every claim there must be SMJ. Start with diversity and FQ and if not try supplemental.

Question 9

Crossclaims

Answer 9

Must arise from the same T/O as the underlying action

they are never compulsory

Question 10

Impleader (third-party practice)

Answer 10

D joins TPD (usually indemnity or contribution)

Then make sure you have SMJ!

Question 11

Timing of impleader

Answer 11

have right to implead within 14 days of serving your answer

after that, must get court permission

Question 12

Intervention- definition and timing

Answer 12

Absentee wants to join a pending suit. Chooses whether to intervene as P or D. Court could realign if came in on wrong side. Application to intervene must be “timely.”

Look to as a right or permissive, then SMJ!

Question 13

Intervention as a right

Answer 13

A’s interest may be harmed if she is not joined & is not adequately represented now

Question 14

Permissive intervention

Answer 14

A’s claim or defense and the pending case have at least one common question. Completely discretionary with the court.

Question 15

Interpleader- definition

Answer 15

One holding money or property wants to force all potential claimants into a single case to avoid multiple litigation and the threat of inconsistent results

Question 16

Interpleader- types

Answer 16

Rule and Statutory

Rule-

• treated as a regular diversity case
• must exceed $75,000
• regular service of process rules

Statutory-

• one claimant must be diverse from one other claimant (don’t even look at the stakeholder’s citizenship)
• All you need is $500 or more
• nationwide service of process

Question 17

Class action- initial requirements

Answer 17

(1) too NUMEROUS for practicable joinder;
(2) some question of law or fact COMMON to the class;
(3) Rep’s claims/defenses TYPICAL of those of the class; AND
(4) Rep is ADEQUATE- will adequately and fairly represent class

Question 18

Class actions- types

Answer 18

(1) “prejudice”: class treatment is necessary to avoid harm either to class member or to the party opposing the class. Ex- numerous claimants to a fund; individual suits would deplete fund.
(2) Injunction or declaratory judgment (not damages) sought because the class members were treated alike by the other party (ex- employer discrimination)

(3) “Damages”: (a) common questions predominate over individual questions AND
(b) class action is the superior method for resolving the dispute
(ex- mass tort)

Question 19

Class actions- certification

Answer 19

court must determine “at an early practicable time” whether to certify the case to proceed as a class action.

If the court certifies, it must define class.

Court must appoint class counsel, which must fairly and adequately represent the interests of the class.

Question 20

Class actions- notification

Answer 20

In “damages” type, court must give individual notice to all reasonably identifiable members, telling them various things, including:

(a) they can opt out;
(b) that they will be bound by the judgment if they do not opt out, AND
(c) they can enter separate appearance through counsel

The rep pays to give the notice

Question 21

Class actions- who is bound by judgment?

Answer 21

All members except those who opt out of a “damages” class

Question 22

Class actions- can parties dismiss or settle a certified class action?

Answer 22

Only with court approval

In all three types, the court gives notice to class members to get their feedback on whether the case should be settled or dismissed. In a “damages” class action, may give members a second chance to opt out.

Question 23

Class actions- satisfying SMJ

Answer 23

FQ or Diversity

Diversity- rep must be diverse from all Ds & rep’s claim must exceed $75,000

Question 24

Class action- CAFA

Answer 24

This Act contains a grant of SMJ separate from regular diversity of citizenship jurisdiction.

It allows fed courts to hear a class action of at least 100 members if any class member is diverse from any D and if the aggregated claims of the class exceed $5million.

Whole idea is to get big interstate class actions into fed court. There are complicated provisions for ensuring that local classes cannot stay in fed court.