Joinder of Parties & Joinder of Claims

Question 1

Permissive Joinder of Parties/Proper Parties

Answer 1

• 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?

Question 2

Def: Necessary or Required Parties

Answer 2

• 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

Question 3

Are joint tortfeasors necessary?

Answer 3

NO!!

Question 4

What happens if a necessary party cannot be joined because there is no PJ or SMJ?

Answer 4

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?

Question 5

If the court dismisses for failure to join a necessary party, what do we call the necessary party?

Answer 5

INDISPENSABLE PARTY

Question 6

Two types of counterclaims

Answer 6

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

Question 7

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.

Answer 7

.

Question 8

Crossclaims

Answer 8

• MUST arise from the same T/O as the underlying action

- NEVER compulsory

Question 9

HINT A/B JOINDER OF CLAIMS: If a claim starts w/ C its between ________. If it starts with I, _________.

Answer 9

C- between existing parties

I- someone new is joining the case

Question 10

Impleader (third-party practice)

Answer 10

• 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

Question 11

After a TPD is joined via imp leader:

• can P assert a claim against TPD?
• can TPD asset a claim against P?

Answer 11

Yes & Yes, so long as those claims ARISE FROM THE SAME T/O AS THE UNDERLYING CASE

Question 12

Def: Intervention

Answer 12

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.”

Question 13

Intervention of Right

Answer 13

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

Question 14

Permissive Intervention

Answer 14

absentee’s claim or defense and the pending case have at least one common question. Allowing intervention here is totally discretionary with the court.

Question 15

Def: INTERPLEADER

Answer 15

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.

Question 16

Two Types of Interpleader:

Answer 16

1- Rule Interpleader

2- Statutory Interpleader

Question 17

Rule Interpleader

• diversity requirement
• amount requirement
• service method
• venue

Answer 17

• STAKEHOLDER must be diverse from EVERY CLAIMANT
• Amount in controversy must exceed $75,000
• Regular service of process rules apply
• regular venue rules apply

Question 18

Statutory Interpleader

• diversity requirement
• amount requirement
• service method
• venue

Answer 18

• 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

Question 19

Class Action

- initial requirements?

Answer 19

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

Question 20

FRCP 23(b)(1) Class Action

Answer 20

• 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

Question 21

FRCP 23(b)(2) Class Action

Answer 21

“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

Question 22

FRCP 23(b)(3)

Answer 22

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

Question 23

If the court certifies the class, what else must it do?

Answer 23

• certify at an early practicable time
• define the class
• appoint class counsel (must fairly and adequately rep the interests of the class)

Question 24

Class Action Notice Requirement

Answer 24

• 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

Question 25

Can the parties dismiss or settle a certified class action?

Answer 25

• 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

Question 26

What do we need for a diversity of citizenship class action?

Answer 26

THE REPRESENTATIVE MUST BE DIVERSE FROM ALL DEFENDANTS

THE REPS CLAIM MUST EXCEED $75,000

Question 27

CAFA– Class Action Fairness Act

Answer 27

• 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)