Joinder of Parties & Joinder of Claims Flashcards
Permissive Joinder of Parties/Proper Parties
- who MAY be joined
- claims must (1) arise from the same t/o AND (2) raise at least one common question of law or fact
REMEMBER: when joining a party you still need to assess PJ & SMJ– does this claim invoke diversity or FQ? If not, can we get it in based on SuppJur?
Def: Necessary or Required Parties
- parties who MUST be joined
A party is “necessary if”
1- w/o absentee, the court cannot accord complete relief among those already joined; OR
2- ** absentee’s interest will be harmed if he isn’t joined; OR
3- absentee claims an interest which subjects a party (usually D) to the possibility of multiple obligations
Are joint tortfeasors necessary?
NO!!
What happens if a necessary party cannot be joined because there is no PJ or SMJ?
The court can either:
1- proceed w/o the necessary party; OR
2- dismiss the case
Facts the court will balance:
1- is there an alternative forum available where everybody (including NP) can be joined?
2- What is the real likelihood of harm to anybody if we proceed w/o the NP party?
3- Can the court do something to shape the order in the pending case to avoid any such harm to the necessary party?
If the court dismisses for failure to join a necessary party, what do we call the necessary party?
INDISPENSABLE PARTY
Two types of counterclaims
1- Compulsory Counterclaim- arises from the same T/O as Ps claim; MUST be filed w/ your ANSWER or else it is waived
2- Permissive- does not arise from the same T/O as Ps claim; does not have to be asserted in the pending case
NOTE: if you were not yet have to assert your answer than you did not have to assert your compulsory counterclaim
REMEMBER: for every claim asserted in federal court, we must assess whether there is PJ and federal SMJ. PJ is assessed the same way as in the state court. For SMJ, start with diversity/alienage and federal question. If none of those works, then try supplemental jurisdiction.
.
Crossclaims
- MUST arise from the same T/O as the underlying action
- NEVER compulsory
HINT A/B JOINDER OF CLAIMS: If a claim starts w/ C its between ________. If it starts with I, _________.
C- between existing parties
I- someone new is joining the case
Impleader (third-party practice)
- A defending party joins third-party defendant (TPD). Why? Because TPD is or might be liable to the defending party for the claim against the defending party. Usually, this is a claim for indemnity or contribution
- D has a right to implead w/in 14 days of serving his answer; after that he needs court permission
- done by filing a third-party complaint against the TPD and serving process on the TPD
After a TPD is joined via imp leader:
- can P assert a claim against TPD?
- can TPD asset a claim against P?
Yes & Yes, so long as those claims ARISE FROM THE SAME T/O AS THE UNDERLYING CASE
Def: Intervention
Absentee (A) wants to join a pending suit. She chooses whether to intervene as a plaintiff or as a defendant. The court could realign her if she came in on the “wrong” side. Application to intervene must be “timely.”
Intervention of Right
Court must allow intervention if:
1- Absentee’s interest may be hurt if she is not joined; AND
2- Absentee is not adequately repped by current parties
NOTE: necessary parties always have a right to intervene
Permissive Intervention
absentee’s claim or defense and the pending case have at least one common question. Allowing intervention here is totally discretionary with the court.
Def: INTERPLEADER
A STAKEHOLDER holding money or property wants to force all potential CLAIMANTS into a single case to avoid multiple litigation and the threat of inconsistent results.
Two Types of Interpleader:
1- Rule Interpleader
2- Statutory Interpleader
Rule Interpleader
- diversity requirement
- amount requirement
- service method
- venue
- STAKEHOLDER must be diverse from EVERY CLAIMANT
- Amount in controversy must exceed $75,000
- Regular service of process rules apply
- regular venue rules apply
Statutory Interpleader
- diversity requirement
- amount requirement
- service method
- venue
- ONE CLAIMANT must be diverse from ONE OTHER CLAIMANT. Don’t even look at the stakeholder’s citizenship.
- Amount in controversy must be at least $500 or more
- allows for nationwide service of process
- venue is proper in ANY district where ANY claimant resides
Class Action
- initial requirements?
FRCP 23(a) 1- numerosity-- too numerous for practicable joinder; AND 2- commonality-- some questions of law or fact in common to the class; AND 3- typicality-- reps claims/defenses typical of those of the class; AND 4- adequate representation-- fairly & adequately rep the class
FRCP 23(b)(1) Class Action
- demonstrate prejudice
- prejudice means class treatment is necessary to avoid harm either to class members or to the party opposing the class.
Example: numerous claimants to a fund; individual suits would deplete the fund
FRCP 23(b)(2) Class Action
“Injunction or Declaratory Judgment Class Action”
- injunction or declaratory judgment must be the primary remedy sought
- any damages sought must be incidental
- class members were treated alike by the other party
Example- employment discrimination
FRCP 23(b)(3)
DAMAGES CLASS ACTION
- common questions MUST PREDOMINATE over individual questions; AND
- class action must be the SUPERIOR METHOD for resolving the dispute
ex- mass tort
If the court certifies the class, what else must it do?
- certify at an early practicable time
- define the class
- appoint class counsel (must fairly and adequately rep the interests of the class)
Class Action Notice Requirement
- no notice required for 23(b)(1) or (b)(2)
- NOTICE REQUiRED FOR 23(b)(3) [class rep pays]
23(b)(3) notice must be given individually (usually mail) to all reasonably identifiable class members, telling them (1) that they can opt out; (2) that they will be bound by the judgment if they do not opt out; and (3) that they can enter a separate appearance through counsel
Can the parties dismiss or settle a certified class action?
- ONLY w/ court approval
- In all three types of class action, the court gives notice to class members to get their feedback on whether the case should be settled or dismissed. In a Type 3 class, may give members a second chance to opt out
What do we need for a diversity of citizenship class action?
THE REPRESENTATIVE MUST BE DIVERSE FROM ALL DEFENDANTS
THE REPS CLAIM MUST EXCEED $75,000
CAFA– Class Action Fairness Act
- This Act contains a grant of subject matter jurisdiction separate from regular diversity of citizenship jurisdiction
- The whole idea is to get big interstate class actions into federal court
ALLOWS FED COURTS TO HEAR A CLASS ACTION IF:
- at least 100 members in the class
- ANY class member is diverse from ANY D
- aggregated claims of the class exceed $5,000,000 (5 million)
NOTE: There are complicated provisions for ensuring that local classes (where most class members and the primary defendants are citizens of the same state) cannot stay in federal court. They are dismissed by the federal court (or, if they were removed from state court, are remanded to state court)
