Multiparty Litigation Flashcards
Compulsory Joinder
a necessary and indispensable party
Absentee is necessary if (1) complete relief cannot be accorded among the parties in the absentee’s interest; OR (2) the absentee has such an interest in the subject matter that a decision in his absence will impair or impede his ability to protect the interest or leave other parties subject to a substantial risk of incurring multiple obligations
NOTE: Joint tortfeasors are NEVER necessary
When absentee must join
Absentee must join if necessary and indispensable and court had PJ* over the absentee and absentee’s presence WOULD NOT destroy complete diversity or venue
When absentee cannot join
If absentee cannot join b/c of no PJ* or destroy diversity, court should determine whether to proceed or dismiss
Factors: (1) existence of an ALTERNATIVE FORUM; (2) PREJUDICE to absentee and parties; and (3) can the court SHAPE RELIEF to avoid harm
Permissive Joinder
parties may join as Ps or Ds whenever (1) claims arise from the same transaction or occurrence, AND (2) question of fact or law common to all the parties
Must have independent grounds, or can get in via supplemental J*
Impleader
Never compulsory
Usually for indemnity or contribution. NOT applies when D is claiming that they are not liable at all.
Right to implead within 14 DAYS of serving your answer. After that, need permission
Diversity is viewed from impleaded party and D, not from P. Also, limitation does not apply bc not considered a claim from a plaintiff
Intervention of right
When a nonparty brings herself into the case. as a P or D
Right to intervention when your interest may be HARMED if not joined. Same as compulsory joinder. Thus, if you are a necessary party, you have an intervention of right
NO supplemental J*. Must have independent grounds
Permissive intervention
available when the applicant’s claim or defense and main action have a question of fact or law in common
Must have independent grounds of FJ*
Discretionary and will not be allowed if intervention will cause delay or prejudice
Class Action requirements
(1) Numerosity; (2) commonality; (3); Typicality; (4) adequate representation
Must also fit in one of three types of classes: PREJUDICE; INJUNCTIVE OR DECLARATORY: or DAMAGES
Numerosity
When the class is so numerous that joinder of all members is impracticable
Commonality
There is some question of law or fact in common to all class members, so resolution of that issue will generate answers for everybody
Typicality
Named parties claims are typical of the class (same pain suffered)
Adequate Representation
the class representative will fairly and adequate represent the class
Prejudice Class
When separate actions would create a risk of inconsistent results or impair the interests of unnamed parties
Class treatment is necessary to avoid harm/prejudice to the class members or the non-class party
Usually when many people have claims to a limited fund of money b/c if they sue individually, the fund will be depleted before all claimants get to court
Injunctive Class
When the D has treated the class alike and injunctive or declaratory relief is appropriate for the class as a whole
CANNOT get damages in Type 2 class action
Damages Class
When common questions of law or fact PREDOMINATE over individual issues, and a class action is SUPERIOR method to handle the dispute
Ex: mass torts
Certification
Not a valid class action until certified by the court. When certified, court must define the class and the class claims, issues, and defenses
Court must appoint a class counsel that would fairly and adequate represent the interests of the class
Notice in class actions
required ONLY in Damages class
Requires INDIVIDUAL notice (usually by mail) to all REASONABLY IDENTIFIABLE members. Representative pays for notice
notice must state: (1) nature of the action; (2) definition of the class; (3) class claims; (4) opt out available; (5) bound by not opting out; and that (6) they can enter a separate appearance through counsel
Effect of Class Action Judgments
All members of a class will be bound by the judgment rendered EXCEPt those in damages class action who NOTIFY the court and OPT OUT
opt out
no right of opt out in first two types of class actions. ONLY in damages actions.
Settling or dismissing a certified class action
requires court approval
Court must give notice to class members to get their feedback on whether the case should be settled or dismissed
If type 3 class, may give members a SECOND CHANCE to opt out
SMJ* in class actions
As long as representative is diverse from ALL defendants, and rep’s claim exceeds 75K, the class action will invoke diversity
Class Action Fairness Act (CAFA)
Grants SMJ* separate from diversity of citizenship
Lets federal court hear a class action if (1) ANY class member is diverse from ANY defendant; (2) the amount inc controversy IN THE AGGREGATE exceeds $5M; and (3) there are at least 100 MEMBERS in the proposed class or classes
ANY d (rather than all Ds) may remove the case from state to federal court, even if the D is a citizen of the forum
Interpleader
When a stakeholder brings suit to require the adverse claimants (defendants) to litigate and determine which has the valid claim to the stake
Rule 22 Interpleader
requires (1) complete diversity between the stakeholder and all adverse claimants and in excess of $75K; or (2) FQJ*
Section 1335 Interpleader
requires only that one claimant be diverse from one other and $500 AIC
Service may be nationwide and venue is proper where any claimant resides
