Multiple Parties and Claims

Question 1

Minor Topics - Real Party in Interest + Capacity to Sue

Answer 1

1. Real Party in Interest

• having the right P
• Rule - an action should not be dismissed from having the wrong P until a reasonble time has been made for the substitution of the correct P

2. Capacity to Sue

• Minors and incompentent may sue or be sused only through a gaurdian
• Partnerships can sue or be sued as an entity if federal jurisdiciton is based on federal question
  
  • if juristiction is based on diversity, then each and every partner must be a party to the litigation (complete diversity applies)

Question 2

Permissive Joinder of Parties

Answer 2

• Joinder by Plaintiffs
• Any number of P’s may join if they:
  
  • assert claims arising out of the same transaction or occurrence and
  • there is a common question of law or fact
• Any number of D’s may be joined in the same action if
  
  • the claims against them arise out of the same transaction or occurrence
  • and there is a common question of law or fact
• Diversity Cases - NO party can be joined whose presence would defeat complete diversity
  
  • if complete diversity is maintained, and if ANY P has a claim that exceeds $75k , other P with smaller claims can come in under supplemental jurisdiction

Question 3

Compulsory Joinder of Parties

Answer 3

• Joinder by XX
• Rule - Necessary Party - must be joined if someone whose participation in the lawsuit is necssary for a just adjudiciation and joinment is feasible
  
  • No “just adjudication” if either:
    
    • absent that party, complete relief cannot be accorded to the existing parties
    • necessary party has an interest in the litigation which will be impeded if the litigation goes forward without that party
    • there is a substantial risk of double or inconsistent liability
  • “joinment is feasible”
    
    • Feasible if:
      
      • it will not deprive the court of SMJ (will not destroy complete diversity) and
      • the court can assert personal jurisdiction over the necessary party
        
        • Bulge Provision - necessary party may be served under any of the provisions of the state long arm staute; and necessary party may be served within 100 miles of the federal courthouse
    • If necessary party cannot be joined, court decides whether to continue without the necessary party (typical) or dismiss the case (rare)
      
      • if suit is dismissed, party is considered truly indispensible

Question 4

Intervention

Answer 4

• Principle - outsider who volunteers to enter a lawsuit
• Concern - primary concern with P

1. Intervention as a Right

• Rule - may be had when the outsider claims an interest in the subject matter of the lawsuit that, as a practical matter, may be compromised by the disposition of the pending action

2. Permissive Intervention

• Rule - may be allowed whenever there is a common question of law or fact between the intervenor’s claimand the main claim
• Note - must ask court’s permission - matter of sound discretion

Note

• Promptness - both types must be timely - reasonable promptness
• NO supplemental jurisdiction for either kind of intervention
  
  • no one can intervene whose presence would destroy diversity jurisdiction or whose claim does not exceed $75k

Question 5

Interpleader

Answer 5

1. In General

• Purpose - used to resolve the problem of competing claims to the same property; avoids inconsistent obligations or multiple claims
• Property at Issue - stake
  
  • may be real or personal, tangible, or intangible
• Person Holding the Property - stakeholder
• Person Claiming the Property - claimants
  
  • Stakeholder can invoke interpleader either as a P or D

2. Rule Interpleader

• Rule - persons with claims that may expose P to multiple liability may be joined as D’s and requried to interplead claims though they lack common origin or are adverse and independent rather than identical or P denies liability
• Remedy avaialbe in a lawsuit otherwise within the court’s jurisdiction

3. Statutory Interpleader

• Authority - Federal Interpleader Act
• Rule:
  
  • Property value claimed must exceed $500
  • Nationwide service of process
  • Venue is proper in any district where any claimant resides
  • SMJ based on minimal diversity
    
    • any 2 claimants are from different states

OHIO - permits interpleader

Question 6

Joinder of Claims

Answer 6

Joinder of Claims

• A party may join independent or alternative cliams of whatever nature against aopposing party
  
  • need not be related
• Diversity case - P can aggregate all claims against the D to exceed the jjurisdictional minimum ($75k)

Editor’s Note 4: If the original claim is based on federal question jurisdiction, then a nonfederal claim may be joined only if diversity jurisdiction exists or if the two claims are part of the same case or controversy as the federal claim such that supplemental jurisdiction applies.

Question 7

Counter Claims

Answer 7

1. Definitions

• Claim by the D against the P
• Pleasded in the D’s anser

2. Compulsory Counterclaims

• Lost if not pleaded
• Rule - a counterclaim is compulsory if it arises out of the transaction or occurence as the claim to which it responds
• No independed jurisdiction is required - if there is SMJ over the main claim, there is SMJ over a compulsory counterclaim
  
  • Supplemental jurisdiction covers compulsory counterclaims
• States of Limitations - filing of the complaint tolls the SOL for the main claim AND any compulsory counterclaims

3. Permissive Counterclaims

• May be pleaded nor OR raised later
• Rule - counterclaims that do not arise out of the same transaction or occurrence - i.e. unrelated
• Requires a jurisdictional base - must be a federal claim or there must be diversity jurisdiction with $75k in issue
• A permissive counterclaim barred by the SOL cannot be brought

Note - must be answered within 21 days of service

Question 8

Cross-claims

Answer 8

Rule

• Claims asserted against a co-party
  
  • P v Co P, D v Co D
• must arise out of the same transaction or occurence as the main claim
• Note - is never compulsory

Note - must be answered within 21 days of service

Question 9

Impleader

Answer 9

Exam Tip - often tested

1. In General

• device by which the D brings into the suit someone who is or may be liable to the D for all or part of the P’s claim against him

2. Vocabulary

• Impleaded Party - 3rd Party Defendant (3PD)
• Original Defendant - as against the third party defendant

3. SMJ

• Diversity Cases - impleader comes within the court’s supplemental jurisdiction
  
  • citizenship of 3PD does not matter
  • amount of claim against 3PD does not matter
  • Extends to the claim by the D against the impleaded 3PD
• Supplemental jurisdiction does not extent to claims by the original P against the 3PD
  
  • P cannot make a claim against the 3PD unless complete diversity is met, or there is federal question jurisdiction

4. Personal Jurisdiction

• In addition to all other grounds of personal jurisidction, a 3PD may be served within 100 miles of the courthouse

Note - can be asserted any time after complaint filed, but if 3PP must get court permission if filed more than 14 days after service of original answer

Question 10

Class Actions

Answer 10

1. Prerequisites

• Numerous - too many parties to join
• Common question of law or fact of law or fact
• Typicality of claaims by the class representative
• Adequacy by the representative’s lawyer

2. Dismissal of Compromise

• Requires judicial approval

3. Diversity Jurisdiction

• Named representatives must be completely diverse from the opposing parties AND
• parties at least one P has a claim worth $75k

4. Class Action Fairness Act of 2005

• Allows very large class actions, involving 100 or more members with more than $ 5M at stake
• Availible by minimal diversity