Joinder of Parties and Claims Flashcards
Proper Parties (who may be joinded?)
Can if:
(1) claims arise from the same transaction or occurrence AND
(2) raise at least one common question
Then assess SMJ.
Necessary Parties- is the absentee necessary?
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
Necessary Parties- assess whether necessary party can be joined
This means (1) there is PJ over necessary party AND (2) he can be joinded without messing up diversity
If necessary party cannot be joined
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?
Compulsory counterclaims- definition
One that arises from the same transaction or occurrence as P’s claim
compulsory counterclaims- when must they be filed?
with answer or else it is waived
Permissive counterclaims
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*
Counterclaims- steps
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.
Crossclaims
Must arise from the same T/O as the underlying action
they are never compulsory
Impleader (third-party practice)
D joins TPD (usually indemnity or contribution)
Then make sure you have SMJ!
Timing of impleader
have right to implead within 14 days of serving your answer
after that, must get court permission
Intervention- definition and timing
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!
Intervention as a right
A’s interest may be harmed if she is not joined & is not adequately represented now
Permissive intervention
A’s claim or defense and the pending case have at least one common question. Completely discretionary with the court.
Interpleader- definition
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
Interpleader- types
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
Class action- initial requirements
(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
Class actions- types
(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)
Class actions- certification
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.
Class actions- notification
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
Class actions- who is bound by judgment?
All members except those who opt out of a “damages” class
Class actions- can parties dismiss or settle a certified class action?
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.
Class actions- satisfying SMJ
FQ or Diversity
Diversity- rep must be diverse from all Ds & rep’s claim must exceed $75,000
Class action- CAFA
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.
