Multiple Parties and Claims

Question 1

How does a permissive joinder work?

Answer 1

Ps and Ds may join/be joined in one action IF
-> any right to relief is asserted jointly, severally, or with respect to OR arising out of same transaction, occurrence or series of them
AND
-> question of law or fact common to all Ps or Ds will arise

Question 2

What type of jurisdiction is required for a permissive joinder?

Answer 2

Need SMJ via FQ or Diversity Jurisdiction

Question 3

How does supplemental jurisdiction play a role in the type of Ds and Ps that can join via permissive joinder?

Answer 3

Ds
-> supplemental jurisdiction doesn’t apply so there must be complete diversity between Ps and Ds, and each claim must exceed $75,000

Ps
-> supplemental jurisdiction is permitted even if the claim of the new P doesn’t meet the statutory jurisdiction amount (less than or equal to $75,000) BUT there must still be complete diversity

Question 4

For a D to be joined under permissive joinder, what kind of personal jurisdiction does the court have to have over the D?

Answer 4

Court needs in personam jurisdiction over D for proper joinder

Question 5

Is the venue under permissive joinder subject to applicable venue requirements?

Answer 5

Yes

Question 6

What is a compulsory joinder?

Answer 6

It’s when you need to join certain parties for just adjudication.

Because
-> complete relief cannot be provided to existing parties in absence of that person
OR
-> disposition in absence of that person may impair that person the ability to protect his interest
OR
-> absence of that person would leave existing parties subject to substantial risk of multiple or inconsistent obligations

Question 7

Must the court have subject matter jurisdiction in order to allow for a compulsory joinder?

What is the implication of this if the exclusive basis for this court’s jurisdiction is diversity jurisdiction?

Answer 7

Yes, need SMJ.

So if exclusive basis for jurisdiction is diversity jurisdiction, party can’t be added if it would destroy diversity

Question 8

For a D to be joined under compulsory joinder, what kind of personal jurisdiction does the court have to have over the D?

Answer 8

Court needs in personam personal jurisdiction over D for proper joinder

Question 9

If a joined party under compulsory joinder objects to venue, must the court dismiss that party?

Answer 9

Only if joinder would make venue improper.

Question 10

Who are indispensable parties?

Answer 10

They are parties that if such parties cannot be joined because of jurisdiction or venue, the court may dismiss the case.

The court will consider the following factors to determine whether they should dismiss the case due to failure of being able to bring in such a party:
-> extent to which judgment without party would prejudice them or existing parties
-> extent to which protective measures could prevent prejudice
-> whether judgment rendered in necessary party’s absence would be adequate,
AND
-> whether P would have adequate remedy if action were dismissed

Question 11

When does an intervention take place?

Answer 11

It’s when a nonparty intervenes in the case based off of a right that nonparty has or is allowed by the court to intervene (permissive intervention)

Question 12

When does a nonparty have an intervention as of right?

Answer 12

Nonparty has interest in property or transaction that is subject matter or action.

Disposition of action may impair nonparty’s interest.

Nonparty’s interest not adequately represented by existent parties.

Question 13

When does a nonparty have permissive intervention?

Answer 13

Court must consider undue delay/prejudice to rights of original parties if nonparty is allowed to intervene in the claim.

Movant has conditional right to intervene under federal statue
OR
Movant’s claim/defense and original action share common question of law or fact.

Question 14

What factors will a court look at to determine whether intervention by nonparty was adequate under timeliness?

Answer 14

Length of time movant knew or reasonably should have known that its interest was threatened before moving to intervene.

Prejudice to existing parties if intervention is permitted.

AND

Prejudice to movant if intervention is denied.

Question 15

How can an intervention as of right or permissive intervention be denied under subject matter jurisdiction?

Answer 15

A nonparty cannot be joined inna case, when that case is based exclusively on diversity jurisdiction and exercising jurisdiction over the nonparty would be inconsistent with the requirements of diversity jurisdiction.

Question 16

What is an interpleader?

Answer 16

It is an action that allows the person holding property (aka the stakeholder) to force all potential claimants into single lawsuit to determine who has a claim in the property.

Question 17

What is the federal interpleader rule regarding Ps?

Answer 17

Persons with claims that may expose P to multiple liabilities may be joined as Ds and required to interplay claims even though their claims lack common origin or adverse and independent, rather than identical to one another,

OR
even if P denies liability in part or in total to some or all.

Question 18

What is the federal interpleader rule regarding Ds?

Answer 18

A defendant who is exposed to similar liability may seek to interplay multiple plaintiffs through a cross-claim or counterclaim.

Question 19

How is subject matter jurisdiction satisfied in interpleader issues?

Answer 19

Court must have jurisdiction over all parties.

For diversity jurisdiction, only stakeholder needs to be diverse from claimants (claimants need not be diverse among themselves).

Question 20

Who does the court need personal jurisdiction over in a case dealing with interpleader?

Answer 20

Court needs in personam personal jurisdiction over claimants in order to join them.

Question 21

Is the interpleader action subject to venue requirements?

Answer 21

Yes it is.

Question 22

What are the requirements for a federal statuary interpleader regarding:
-> subject matter jurisdiction
-> In personam jurisdiciton
-> Venue
-> Deposit

Answer 22

Subject matter jurisdiction
-> Diversity jurisdiction met if any two adverse claimants are citizens of different states, and property at issue must be $500 or more (doesn’t need the traditional $75,000 threshold)

In personam jurisdiction -> nationwide personal jurisdiction and service of process permitted

Venue -> proper in any district where a claimant resides

Deposit – requires the stakeholder to deposit the property at issue with the court or post a bond in an amount determined by the court

Question 23

What is a permissive joinder?

Answer 23

A party may join independent or alternative claims of whatever nature against opposing party.

Question 24

Can a P aggregate all claims to satisfy amount-in-controversy requirement?

Answer 24

Under permissive joinder in a diversity jurisdiction, yes a P can to hit the $75,000.

Question 25

When can nonfederal claims be permissively joined when the case focuses on a federal question?

Answer 25

Nonfederal claims can be joined only if diversity jurisdiction exists

OR

If claims are party of same case/controversy as federal claim so supplemental jurisdiction applies.

Question 26

Is permissive joinder subject to venue requirements?

Answer 26

Yes it is.

Question 27

When must counterclaims be answered by?

Answer 27

Within 21 days of service.

Question 28

When is a counterclaim compulsory?

Answer 28

It needs to be brought.

At time of service, counterclaim is compulsory if it arises out of same transaction/occurrence that is subject matter of opposing party’s claim and doesn’t require adding another party over whom court has no jurisdiction.

Question 29

How will a court have subject matter jurisdiction with regards to a compulsory counterclaim?

Answer 29

By definition court will have supplementary jurisdiction so don’t need independent SMJ from original claim.

Question 30

When must a D assert a compulsory counterclaim? What happens if they don’t?

Answer 30

A compulsory counterclaim must be asserted in the defendant’s answer or the counterclaim is waived.

Question 31

Is the possibility of bringing a compulsory counterclaim lost through a secondary suit, when the first suit was dismissed before the D’s answer was filed?

Answer 31

But when an action is dismissed before a defendant’s answer is filed, any counterclaims that would have been compulsory in an answer are not waived. That is because the defendant never had the opportunity to raise, and therefore could not waive, those counterclaims.

Question 32

When is a counterclaim permissive?

Answer 32

Party has discretion if counterclaim isn’t compulsory.

Question 33

How does a court have SMJ over a permissive counterclaim?

Answer 33

The permissive counterclaim doesn’t fall within supplemental jurisdiction of the federal court, as it does not arise out of the same transaction or occurrence as the original claim.

Thus, a permissive counterclaim must on its own meet the requirements for federal subject matter jurisdiction (either diversity or federal question).

Question 34

Can third party defendants assert counterclaims against original P or D?

Answer 34

Yes they can but such counterclaims are governed by requirements for counterclaims (look to requirements to see if permissive or compulsory) and joinder.

Question 35

When must cross-claims be answered by?

Answer 35

Within 21 days of service.

Question 36

What is a cross-claim?

Answer 36

It’s a claim against a co-party that may be asserted if they arise out of same transaction or occurrence that is subject matter of original action or counterclaim

AND new parties subject to joinder rules.

Question 37

How does a court have SMJ on cross-claims?

Answer 37

By definition court will have supplemental jurisdiction so don’t need independent SMJ from original claim.

Question 38

How does the court assert in personam jurisdiction and proper venue in a cross-claim?

Answer 38

Personal jurisdiction satisfied because parties are already before the court.

Proper venue over original claim already established, so party cannot object to venue over cross-claim.

Question 39

What is a third-party impleader? Definition.

Answer 39

A defending party, aka the defendant in the case, (referred to as the third-party P with regards to the third-party claim) can implead nonparty (referred to as third-party D) for liability on original claim.

Question 40

When is a P allowed to assert a third-party claim to the third-party D?

Answer 40

Impleader (i.e., third-party practice) allows a defendant to add a nonparty (i.e., third-party defendant) to a suit who may be liable to the defendant for all (i.e., indemnity) or part (i.e., contribution) of the plaintiff’s claim.

When this occurs, the plaintiff may assert his/her own third-party claim against the third-party defendant if that claim:

-> arises out of the same transaction or occurrence that is the subject matter of the plaintiff’s claim against the defendant in the original complaint
AND
-> satisfies original subject-matter jurisdiction on its own.

Question 41

What are the timing constraints over a third-party claim?

Answer 41

Can be asserted any time after complaint is filed, but third-party P must get court permission if filed more than 14 days after service or original answer.

Question 42

How does court have subject matter jurisdiction over third-party claims?

What happens if the original claim is based only on diversity jurisdiction?

Answer 42

By definition court will have supplemental jurisdiction so don’t need independent SMJ from original claim.

If original claim is based only on DJ, claims by P against third-party D must met DJ or FQ jurisdiction requirements on its own.

Question 43

What kind of personal jurisdiction does the party need over a third party?

Answer 43

Court needs in personam PJ over a third party.

Question 44

What are the four basic requirements for a class action?

Answer 44

Numerosity
-> class is so numerous that joinder of all members is impracticable (usually met when there are over 40 members)

Commonality
-> must be questions of law or fact common to class

Typicality
-> claims/defenses of representatives must be typical of class

AND

Adequacy
-> representatives must fairly and adequately protect the interests of the class

Question 45

What are the three situations where a class can be certified?

Answer 45

Risk of prejudice
-> separate action would create risk that the class opponent would be subject to inconsistent adjudications or if separate actions would impair the interests of class members.

Final equitable relief
-> the class shares a general claim and injunctive or declaratory relief is sought; a single, indivisible remedy Ould provide relief to each class member (therefore monetary damages not available)

Common legal/factual questions
-> MUST predominate over questions affecting individual members and class action is superior method for brining about fair and efficient adjudication of controversy; class representatives need not establish likelihood of success on common question of law

Question 46

How does a court have subject matter jurisdiction over a class action?

Answer 46

The class action must either:
-> satisfy the federal question requirement
OR
-> satisfy diversity jurisdiction (class representatives must be diverse from class opponents and at least one P must meet $75,000 jurisdictional amount)
OR
-> meet the requirements under the Class Action Fairness Act of 2005 (made it easier to meet federal jurisdiction requirements for a class action)

Question 47

What are the requirements under the Class Action Fairness Act of 2005?

Answer 47

-> Class contains ≥ 100 members
-> At least one class member & one defendant are diverse
AND
-> Amount in controversy for aggregated claims exceeds $5 million

Question 48

When is venue proper under a class action?

Answer 48

When the class action involves a defendant class, venue is determined on the basis of the residences of the representative parties, not the residences of all the class members.

Question 49

What is required of the court in order to settle or dismiss the class action?

Answer 49

The claims, issues, or defenses of the certified class may be voluntarily settled, compromised, or dismissed only with the APPROVAL of the court.

The court must direct notice to all class members bound by proposed settlement or dismissal.

Question 50

Who does a valid judgment bind in a class action?

Answer 50

A valid judgment generally binds all members of the class except those who opted out.