Joinder of Parties and Third-Party Practice

Question 1

Joinder of Claims

Answer 1

A party may join as many claims in a single action as the party has against an opposing party. Joinder is not required but remember claim preclusion.

Question 2

Joinder of Claims: Relation?

Answer 2

There is no req. that all of the claims in a complaint be related. The goal of joining all claims in one action is to achieve a complete resolution of all disputes between the parties.

Question 3

Counterclaim

Answer 3

A claim brought by any party against any other opposing party. Can be compulsory or permissive.

Question 4

Compulsory Counterclaim

Answer 4

One that arises out of the same transaction or occurrence as the original claim in the lawsuit. Failure to raise it waives the right to assert the claim in the original action, or in any other action.

Question 5

Permissive Counterclaim

Answer 5

Any claim that a party has against an opposing party that does not arise out of the transaction or occurrence that is the SM of the opposing party’s claim. Does not have to be asserted.

Question 6

Cross-Claim

Answer 6

A claim against a party who is not an opposing party (brought against a co-party).

Question 7

Waiver of Cross-Claims?

Answer 7

Remember that cross-claims are not compulsory under the FRCP (therefore, they are not barred if you do not bring them in an earlier suit). But watch out for counterclaims to cross-claims (compulsory rule will still apply.

Question 8

Jurisdiction over a Cross-Claim

Answer 8

To have jurisdiction the cross-claim must:

• have an independent basis for jurisdiction; or
• arise out of the same transaction or occurrence as the original claim or a counterclaim.

Question 9

Determining if a Counter Claim or Cross-Claim Arises Out of the Same Transaction or Occurrence of Ps Original Claim

Answer 9

Factors include:

• whether the issues of fact and law in the Ps claim and the Ds cross-claim are the same
• whether the same evidence would support or refute the Ps claim and Ps cross-claim
• whether there is a logical relationship between the Ps claim and Ds cross-claim
• whether res judicata would bar a subsequent suit on the cross-claim

Question 10

Joinder of Cross-Claims

Answer 10

If one files an appropriate cross-claim (one that is related to the transaction), they can then file unrelated cross-claims.

Question 11

Responding to Cross-Claims

Answer 11

A co-D can counterclaim the cross (compulsory/permissive rules apply). The cross-claim does not have to be related (but if they bring an unrelated claim it is waived).

Question 12

Impleader

Answer 12

When a D brings a claim against a person not already a party. Must allege that the third party is responsible for some/all of the liability.

Question 13

When Can a D Implead?

Answer 13

A D has the right to implead if they do so within 14 days of serving an answer, otherwise they need permission from the court.

Question 14

Rights of Third-Party D

Answer 14

The third-party D may bring their own claims against others and implead others. The original P can also file a claim against the third party D if it relates to one of the Ps original claims.

Question 15

Intervention

Answer 15

A non-party’s ability to assert a right or interest in an ongoing action. May be mandatory or permissible upon the discretion of the court.

Question 16

When Intervention is Mandatory (A Matter of Right)

Answer 16

Upon a finding that the non-party’s application was timely, the non-party must be allowed to intervene if:

• a federal statute confers an absolute right of the party to intervene; or
• a non-party is asserting a protectable interest relating to the property or transaction involved in the lawsuit; and:
• the non-party is so situated that disposing of the action may as a practical matter impair or impede its ability to protect its interest
• the non-party’s interests are not adequately represented by existing parties.

Question 17

When Intervention Is Permissive Even if It is Not a Matter of Right

Answer 17

Intervention is permissible if:

• A federal statute allows a conditional right to intervention; or
• the non-party has a claim or defense that shares a common Q of law or fact.

Question 18

Joinder of Parties

Answer 18

Involves Permissive Joinder and Mandatory Joinder

Question 19

Permissive Joinder

Answer 19

Multiple Ps can join in one suit and/or a P can join multiple Ds in a suit if:

• the joined parties claim relief (if Ps) or face liability (if Ds) that arises out of the same transaction or occurrence; and
• raise a common issue of law or fact

Question 20

Mandatory Joinder

Answer 20

A party will be forced to join the suit or the case will be dismissed because the mandatory party cannot join (depends on whether a party is an indispensable party or merely a necessary party).

Question 21

Mandatory Joinder: Step 1 –> Is Absent Party Necessary

Answer 21

A necessary party is one:

• who has an interest that might be impaired if left out
• complete relief cannot be issued in the party’s absence
• current parties would be subject to inconsistent/duplicative liability

Question 22

Mandatory Joinder: Tortfeasors?

Answer 22

Joint Tortfeasors are not necessary parties. Therefore, mandatory joinder does not apply.

Question 23

Mandatory Joinder: Step 2 –> Can the Necessary Party Be Joined

Answer 23

Remember that a missing party can’t be joined in federal court if the court lacks PJ over the missing party, or adding the party would destroy SMJ by destroying diversity.

Question 24

Mandatory Joinder: Step 3 –> Is the Necessary Party Indispensable?

Answer 24

Courts will consider multiple factors including:

• the extent of prejudice to the missing party
• whether the prejudice can be lessened by shaping the relief in a certain way
• if the case is dismissed –> whether the plaintiff can find relief in another forum.

Question 25

Class Action Requirements

Answer 25

Include:

• Numerosity
• Commonality
• Typicality
• Adequacy of Rep.

Question 26

Class Actions: Numerosity

Answer 26

The number of members of the class is so numerous that separate joinder of each member is impracticable.

Question 27

Class Actions: Commonality

Answer 27

The legal and factual issues are common to those raised by each member of the class.

Question 28

Class Actions: Typicality

Answer 28

The claims or defenses of the rep. party are typical of those raised by each member of the class.

Question 29

Class Actions: Adequacy of Rep.

Answer 29

The class rep can fairly and adequately protect and represent the interests of each member of the class

Question 30

Class Actions: PJ

Answer 30

A court must have PJ over every D and over the named P.

Question 31

Class Actions: Binding Judgments

Answer 31

A judgment binds all class members unless they opt out.

Question 32

Class Actions: Notice

Answer 32

In common-question class actions –> class members must be given notice of the pendency of the suit, usually through mail or publication.

Question 33

Class Actions: SMJ

Answer 33

• When alleging a state law violation, the class can appear in federal court only if the Ds and representative Ps are completely diverse.
• However, if the class has 100 members and seeks damages over $5M, diversity is satisfied if any single member is diverse from any D (under the Class Action Fairness Act)

Question 34

Removal of Class-Action Suits

Answer 34

If the class has 100 members and seeks damages over $5M, removal can be made by a home state D and can be made without the agreement of all other Ds (CAFA).

Question 35

Interpleader

Answer 35

• If a party feels it might be subject to multiple or inconsistent liability, it can file an interpleader claim and let the would-be claimants duke it out.
• Is only applicable where multiple claims demand the same thing or obligation

Question 36

Relationship Between Joinder and SMJ

Answer 36

SMJ is necessary for every claim, whether it be a counterclaim, cross-claim, impleader claim, or any other claim in a lawsuit.

Question 37

Relationship Between Joinder and PJ

Answer 37

Remember that PJ is necessary for every party (but remember that class members are not “parties” for the purposes of PJ).

Question 38

Bulge Rule

Answer 38

A third party D will be subject to the PJ of the federal court if, in addition to any other ground for PJ, the impleaded D is served with process within 100 miles of the courthouse where the suit is pending.

Question 39

Relationship Between Joinder and Venue

Answer 39

Unlike SMJ and PJ, the law of venue need only be consulted when the lawsuit is filed.