Joining Parties

Question 1

Three people are injured when the taxi in which they are riding crashes. May they
sue together as co-plaintiffs? Why or why not?

Answer 1

Yes, because their claims arise from the same Transaction or occurrence and
raise at least one common question

Question 2

Three people are injured when the taxi in which they are riding crashes May they (or any one of them) sue the taxi driver and the cab company as co-defendants?

Answer 2

Yes, because the claims against the two (1) arise from the same T/O and (2) raise at least one common question

Question 3

What do you do after you add a new party?

Answer 3

Then assess subject matter jurisdiction – can the case as structured invoke diversity or federal question jurisdiction?

Question 4

Who is a necessary party?

Answer 4

An absentee (A) who meets any of these tests:
(1) Without A, the court cannot accord complete relief among existing parties
(worried about multiple suits);
(2) A’s interest may be harmed if he is not joined (practical harm); or
(3) A claims an interest which subjects a party (usually D) to multiple obligations.

Question 5

Are joint tortfeasors necessary?

Answer 5

Never, you can sue one of several tortfeasors.

Question 6

Bob Barker holds 1000 shares of stock in Pricelineisright.com. Shatner claims that he and Bob agreed to buy the stock jointly and that he paid for half the stock. Shatner sues Pricelineisright.com, seeking to have Bob’s shares canceled and the stock reissued in their joint names. Is Bob necessary?

Answer 6

Yes. He probably meets all three tests for required.

Question 7

If Bob is a necessary party what must we do next?

Answer 7

NOW see if his joinder is “feasible.” It

is feasible

Question 8

When would joining Bob (a necessary party) be feasible?

Answer 8

(1) there is personal jurisdiction over him and (2) joining him will not destroy diversity (the court decides whether Bob is joined as a plaintiff or a defendant). If joinder is feasible, bring Bob into the case.

Question 9

What happens if Bob (a necessary party) cannot be joined?

Answer 9

The court must either proceed without the necessary party or dismisses the entire case.

Question 10

What factors does the court look at to make the decision to either proceed without the necessary party or dismisses the entire case?

Answer 10

It looks at these factors:

(a) is there an alternative forum available (maybe a state court)?
(b) what is the actual likelihood of harm to the necessary party?
(c) can the court shape relief to avoid that potential harm to the necessary party?

Question 11

What is impleader?

Answer 11

A defending party wants to bring in someone new (third-party defendant (“TPD”)).

Question 12

Why would a D want to implead a third party?

Answer 12

For indemnity and contribution.

Question 13

In what time period does a D have a right to implead?

Answer 13

There is a right to implead within 14 days after serving answer; after that, need court OK.

Question 14

– Pam sues Doris to recover for personal injuries from a car wreck. Doris has a right to indemnity from Insco. (Or perhaps Doris has a right of contribution from a joint tortfeasor.) Steps for impleading the TPD in the pending case:

Answer 14

a. File third-party complaint naming Insco as TPD; and

b. Serve process on the TPD. (So must have personal jurisdiction over TPD.)

Question 15

After TPD is joined, can plaintiff assert a claim against TPD?

Answer 15

Yes, if the claim arises from the same T/O as the underlying case.

Question 16

After TPD is joined, can TPD assert a claim against plaintiff?

Answer 16

Yes if the claim arises from the same T/O as the underlying case

Question 17

For any claims by TPD what do you do?

Answer 17

Then, for any of these claims, assess subject matter jurisdiction. Always do it the same way. Does the claim invoke diversity of citizenship or FQ? If so, it’s OK.
If it does not work try
Supplemental jurisdiction

Question 18

What is intervention?

Answer 18

Absentee wants to join a pending suit She .

Question 19

In an intervention who decides what side they come in on? When must they come in?

Answer 19

The impleadeing party chooses to come in either as plaintiff or as a defendant. The court may realign her if it thinks she came in on the “wrong” side
Application to intervene must be “timely.”

Question 20

What is an Intervention of right?

Answer 20

A’ s interest may be harmed if she is not joined and her interest is not adequately represented now.

Question 21

What is Permissive intervention?

Answer 21

A’s claim or defense and the pending case have at least one common question. Discretionary with court; OK unless delay or prejudice.

Question 22

What is Interpleader?

Answer 22

One holding property forces all potential claimants into a single lawsuit to avoid multiple litigation and inconsistency.

Question 23

How do you determine diversity of citizenship under rule interpleader?

Answer 23

Under rule interpleader: stakeholder must be diverse from every claimant.
and
Amount in controversy: Under the Rule, must exceed $75,000.

Question 24

How do you determine diversity of citizenship under statute interpleader?

Answer 24

Under statutory interpleader: one claimant must be diverse from one other claimant (don’t care about stakeholder=s citizenship).
and
amount in controversy $500 or more.

Question 25

Hypo: Insco (inc. in Del.; ppb NY) holds a fund of $100,000 under a life insurance policy. After the insured dies, potential claimants to the fund are Bonzo (NJ), Gonzo (MN) and Nonzo (NY). Insco wants to avoid being sued on the policy in three different actions. What can it do?

Answer 25

Interplead.
Here there could be no rule interpleader because no diversity. Stakeholder
is not diverse from every claimant. But statutory interpleader would be OK. For diversity under the statute, OK if one claimant is diverse from one other claimant. And all other requirements are met too.