Joining Claims & Parties

Question 1

Interpleader?

Answer 1

Interpleader allows a property holder (stakeholder) to initiate a suit to compel multiple claimants to that property to litigate the dispute. (Rule 22 and Statutory)

Question 2

Rule 22 Interpleader

Answer 2

• Complete diversity required: Stakholder must be diverse from all claimants; amount in controversy must exceed $75K
• Service of process and venue requirements are the same as for any other fed. case

Question 3

Statutory Interpleader

Answer 3

• Diversity requirement: One claimant must be diverse from at least one other claimant (Amount in controversy must be $500 or more)
• Nationwide Jx: Service is proper on anyone in the US
• Venue is proper in any district where any claimant resides

Question 4

Interpleader Example

Answer 4

Deceased had life insurance policy with DE corp. having PPB in CA; claimants from NJ, NV & CA all claim interests.
Rule 22 interpleader: improper b/c lack of diversity
Statutory interpleader: proper b/c claimants from different states.

Question 5

Intervention?

Answer 5

A non party absentee may seek to join (i.e., intervene) in an already pending suit, either as a P or D

Question 6

Intervention as a right

Answer 6

Must be allowed if either:

a) Absentee’s interest will be harmed if not joined and no existing party will adequately represent that interest, or
b) Absentee has an unconditional statutory right

Question 7

Permissive intervention

Answer 7

Allowed in court’s discretion if either:
a) Absentee has a claim or defense that shares a common question of law with the underlying action;
b) Absentee has a conditional statutory right, or
c) Absentee is a govt. officer or agency and an existing claim or defense relates to the officer/agency or a statute, regulation, etc.
Court must also consider whether intervention will unduly delay or prejudice adjudication of original parties’ right

Question 8

Jurisdiction (Intervention)

Answer 8

• In diversity cases, intervenes must establish independent SMJ
• Supplemental Jx will not cover diversity intervention

Question 9

Intervention vs. Compulsory joinder

Answer 9

• Compulsory joinder forces absentee into suit; narrow; must be very necessary for the court to force an absentee into a case
• Intervention lets absentee join suit voluntarily; more lenient

Question 10

Impleader?

Answer 10

Impleader allows D to join a non-party who may be liable to D for all or part of the claim brought by P against the original D (i.e., D brings in another D may be liable to D for P’s harm)
-Allows D to assert claims for indemnity, contribution, etc. against another party for the claim D is defending

Question 11

Effect & terminology (Impleader)

Answer 11

Original D becomes a P

• Newly joined party is a third-party D (TPD)
• Original D becomes third-party p (TPP)

Question 12

Requirements (Impleader)

Answer 12

• D may implead a (third party D) TPD by filing a third-party complaint within 14 days after serving her answer (after 14 days D must get permission from court)
• D’s claims under impleader must be derivative (D/TPP cannot claim that TPD is solely liable to P)
• Jurisdiction: Court must have PJ over impleaded party; court will generally have supplemental Jx

Question 13

Additional claims involving TPD (Impleader)

Answer 13

• Once TPD is joined, TPD may make claims of her own against other parties as long as SMJ exists over each claim (SMJ will eventually exist through supplemental Jx)
• Original P may assert claims against TPD arising from the same transaction or occurrence as P’s original claims against D/TPP

Question 14

Compulsory Joinder?

Answer 14

Absent parties may be forced to join a case if they are deemed necessary parties

Question 15

What is a necessary party?

Answer 15

Absentees are necessary when either:

a) Without absentee, court cannot grant complete relief (Consider whether multiple suits might follow if absentee is not made a party)
b) Absentee has a legal interest that may be impaired or impeded or
c) Absentee has an interest that creates a risk of multiple or inconsistent ruling and obligations

Question 16

Requirement (Compulsory Joinder)

Answer 16

Absentee can be joined as a necessary party if:
1) There is PJ over the absentee; and
2) Joining the absentee will not destroy diversity
Otherwise, dismiss

Question 17

what is an Indispensable party?

Answer 17

If a necessary party cannot be joined, ask whether the party is so indispensable that the case should be dismissed.

Question 18

Factors for a party to be considered indispensable?

Answer 18

1) Is an alternative forum available
2) What is the likelihood of prejudice to the parties or others if the case goes forward?
3) Can the court shape potential relief to avoid prejudice?
4) Would P have an adequate remedy if the case is dismissed?

Question 19

Permissive Joinder?

Answer 19

Under permissive joinder, P seeks to join non-parties as co-Ps or co-Ds

Question 20

Permissive Joinder: Joining additional Ps and D

Answer 20

• Joining additional Ps: Relies on their willingness to join (ie. non-party that P seeks to join as Co-P must agree to join
• Joining additional Ds: Lies in the hand of the P (i.e. non-party that P seeks to join as Co-D cannot refuse

Question 21

Requirements for permissive joinder

Answer 21

Allowed when:

1) Same transaction or occurrence: Joined parties assert a right to relief arising from the same transaction or occurrence as P’s claim (Ds may be joined if right to relief asserted against them arises from same transaction or occurrence)
2) Common question of law or fact There is a common question of law or fact in the joined parties’ claims or claims against them (e.g. after bus accident, all injured passengers and bystanders join as Ps: common issue is driver’s negligence; other issues (e.g. damages) are tried individually each P

Question 22

Jurisdiction on permissive joinder

Answer 22

Court must have Jx over joined parties and claims

Question 23

Permissive Joinder vs. Impleader

Answer 23

Impleader which involves joinder of non-parties by D, whereas permissive joinder involves joinder of non-parties by P