Multiple Parties & Claims

Question 1

Joinder of Claims

Answer 1

Plaintiff may join any claims she has against the ▵

Question 2

Permissive Joinder

Answer 2

Plaintiff may join if:

• Plaintiff’s claims arise from same transaction or occurrence AND raise a common question of law or fact

Question 3

Compulsory Joinder of Necessary Parties

Answer 3

Non Ps required to be joined if they’re nec & indispensable Parties to the action (MUST Join)

• All Ps required to give complete relief to everyone

Question 4

Compulsory Joinder - Necessary Parties

Answer 4

• Court can’t give complete relief without them
• Missing party’s interests would be harmed
• Missing party’s claims would subject other party to incur multiple liability
• Joint Tortfeasors are NOT necessary parties

Question 5

Compulsory Joinder - Jurisdictional Requirements

Answer 5

1. Personal Jurisdiction, AND
2. Joinder will not destroy diversity
   
   • If it does, court can dismiss or
   • proceed if it believes it can give effective relief

Question 6

Compulsory Joinder - Effect of Failure

Answer 6

Court can proceed w/out the necessary party or dismiss entirely,

• Factors considered when determining to dismiss or proceed:
  
  • Is there an alternative forum available?
  • What is the actual likelihood of harm?
  • Can court shape relief to avoid harm?
• If dismissed - Party is referred to as indispensable

Question 7

Counterclaim

Answer 7

Claim against opposing party

Question 8

Compulsory Counterclaim

Answer 8

Arises out of the same transaction or occurrence

• Waived if not filed - if ▵ doesn’t plead comp. CC in answer, claim can’t be asserted in another action
• Supplemental Jurisdiction
  
  • YES, Comp CC falls within Supp J b/c arises out of same transaction or occurrence
  • No limitations b/c asserted by ▵ (Such as to destroy complete diversity)

Question 9

Permissive Counterclaim

Answer 9

Does not arise out of the same transaction or occurrence, ▵ may assert permissive counterclaim in another action

Question 10

Cross-Claim

Answer 10

Against Co-party

• Must arise out of same transaction or occurrence (Always permissive, never compulsory)
• Supplemental Jurisdiction - Yes, arises out of same transaction or occurrence
  
  • Limitations apply, can’t use SJ to overcome complete diversity

Question 11

Impleader

Answer 11

▵ who believes 3d P is liab. to her for all (Indemnification) or part (Contribution) of Plaintiff’s claims against the ▵ may implead them as 3d P ▵

• ▵ must be claiming derivative liability (Indemnification or contribution),
• Can’t just blame a 3d party
• Normal pleading rules apply

Question 12

Impleader - Timing

Answer 12

Within 14 days of answering complaint or by leave of court

Question 13

Impleader - Requirements

Answer 13

1. File Third Party Complaint
2. Serve Process on Third Party ▵ (Personal Jurisdiction)
3. SMJ - Diversity, Federal Question, OR Supp. J
   
   • Avail. since claim for indem. or cont. will arise out of common nucleus of operative fact

Question 14

Interpleader

Answer 14

Used when stakeholder has property and 2 or more others claim ownership

• forces all claimants into single suit b/c the Plaintiff doesn’t want to be exposed to multiple liab. or inconsistency

Question 15

Statutory Interpleader

Answer 15

Easier then rule 22

• doesn’t require complete diversity,
• has relaxed venue &
• nationwide service of process

Question 16

Statutory Impleader - Jurisdiction

Answer 16

• Minimal Diversity - only 1 claimant must be diverse from 1 other claimant AND
• AIC = $500 or more

Question 17

Interpleader - Venue

Answer 17

Any district where any claimant resides

Question 18

Statutory Interpleader - Service of Process

Answer 18

• Nationwide
• no PJ issues

Question 19

In a statutory interpleader case, where does a federal court have jurisdiction?

Answer 19

Nationwide

Question 20

Rule 22 Interpleader - jurisdiction

Answer 20

1. Complete Diversity - Stakeholder must be diverse from every claimant, AND
2. AIC = More than $75K

Question 21

Rule 22 Interpleader - Venue

Answer 21

Normal venue rules apply

Question 22

Rule 22 Interpleader - Service of Process

Answer 22

Normal services rules apply

• So, PJ must be satisfied

Question 23

Class Action Requirements

Answer 23

Requirements:

1. Too numerous for joinder to be practical 25<40
2. Questions of law or fact common to class
3. Claims or defense of representative parties must be typical, AND
4. Rep. will fairly & adequately protect interest of class

Question 24

Categories for Class Actions

Answer 24

1. Anti-prejudice Class Actions
2. Injunctive & Declaratory Relief Class Actions
3. Damage Class Actions

Question 25

Anti-Prejudice Class Action

Answer 25

Can’t opt out, designed to avoid prejudice to class members or to the party opposing the class

• Inconsistent Adjudications would establish different standards
• Limited Funds
  
  • Adjudication of individual members who race to court 1st would be:
    
    • dispositive of interests of other members OR
    • impair ability to protect their interests

Question 26

Injunctive & Declaratory Relief Class Actions

Answer 26

Can’t opt out, Goal is to change behavior, not give compensation.

• Class treatment sought b/c class was treated the same by opposing party
• ▵’s conduct generally applicable to class
  
  • no requirement that ▵ conduct be damaging or offensive to every class member

Question 27

Damage Class Actions

Answer 27

Can opt out, all members claim they have been damaged by ▵ by same conduct in same way & entitled to monetary relief

• Questions of common fact or law predominate, AND
• Class Action Superior Method for fair and efficient adjudication

Question 28

Class Actions - Notice to Class

Anti-Prejudice Class Actions

Answer 28

Discretionary

• Court may direct appropriate notice to any class certified as a prejudice class action

Question 29

Class Actions - Injunctive & Declaratory Relief Class Actions

Notice

Answer 29

Discretionary

• Ct. may direct appropriate notice to any class certified as an injunctive & declaratory relief class

Question 30

Class Actions - Damage Class Actions

Notice

Answer 30

Mandatory

• Court must direct notice to class member using the best notice practicable under the circ. including:
  
  • individual notice to all members who can be ID through reasonable effort
• Must notify member of their ability to opt out and preserve right to sue on own
• Must inform member of binding nature of class action judgement if they choose not to opt out
• Notice is a litigation cost paid by the representative of the class

Question 31

Certification of Class

Answer 31

Court required to certify the class to proceed as a class action

• Requirements:
  
  • certify at earliest practical time
  • define class and issues
  • appoint class council - one who fairly and adequately represents the classes interest
• Certification may be altered or withdrawn anytime b/f final judgement
• Exception - Can be appealed, but court of appeals must grant the interlocutory appeal

Question 32

Class Actions - Personal Jurisdiction

Answer 32

don’t have to meet PJ requirement for each class member, Only need PJ over the ▵

Question 33

Class Action - SMJ

Answer 33

To bring class suit in fed. ct., SMJ must be satisfied

• Federal Question (Anti-trust, securities, civil rights, copyright, patent), OR
• Diversity
  
  • Only representative of class must be diverse from all ▵s, AND
  • AIC - Representative’s claim exceeds $75K

Question 34

Class Action Fairness Act

Answer 34

Statutory grant of SMJ over class action suit

Question 35

Class Action Fairness Act - Jurisdictional Requirements

Answer 35

Act gives a fed. ct. original jurisdiction over class action suit if:

1. Minimal Diversity - any member of class is diverse from any ▵, AND
2. AIC > $5 million - Aggregated claims of class exceed $5 million

Question 36

Class Action Fairness Act - Mandatory Decline of Jurisdiction

Answer 36

District court must decline jurisdiction under CAFA if:

1. More than 2/3 of proposed class members are citizens of the state where action is filed
2. ▵ from whom significant relief is sought is citizen of state where action filed, AND
3. Principal injuries occurred in the state where action filed

Question 37

Class Action Fairness Act - Discretionary Decline of Jurisdiction

Answer 37

Federal ct. may decline jurisdiction under CAFA or remand if originally removed from state court if:

1. More than 1/3 but less then 2/3 of proposed members are citizens of state where action filed, AND
2. Primary ▵s are also citizens of state where action filed

Question 38

Class Actions - Settlements & Dismissals

Requirements

Answer 38

1. Court Approval AND
2. Notice

Question 39

Settlements & Dismissals - Court Approval

Answer 39

Must approve any settlement, vol. dismiss or compromise of the claims, issues or defenses of cert. class

• Fairness Hearing Required
  
  • Court may approve settlement, vol. dismiss, compromise that would bind class members only after fairness hearing

Question 40

Settlements & Dismissals - Notice requirement

Answer 40

In a reasonable manner to all class members who would be bound by proposed settlement, dismissal or compromise

• Damage class action
  
  • No opportunity to opt out required,
  • court may refuse to approve settlement unless it gives a new opp. to opt out to individual class members who had an earlier opportunity to opt out

Question 41

Class Actions - Attorneys Fees

Answer 41

Fixed by Court

• so Absent members of class are protected
• A separate motion is required for the courts approval of attorney fees

Question 42

After a party has been impleaded into a suit, the impleaded party may file what claims? The orig. party may file what claims?

Answer 42

Impleader party - can bring claims of its own against other parties or implead additional parties

Original - may file claim against the impleaded D provided the claim relates to the orig. claims

Question 43

What are the steps if joinder is mandatory ?

Answer 43

If the absent party is necessary:

1. Join the party if available
2. If the nec. party can’t be joined - determine whether the nec. party is indispensable
3. If the party is indispensable, dismiss the case

Question 44

What is rule 24 intervention?

Answer 44

When a non-party attempts to join a suit through its own initiative

Question 45

When does intervention as a right occur?

Answer 45

Court must allow for intervention if:

1. The party claims an int. relating to the subj. matter of the action AND
2. Absent intervention, the party may not be able to protect their interest

Question 46

When is permissive intervention available?

Answer 46

Upon timely application and at the court’s discretion

• Any pers. may be permitted to intervene in an action when the intervenor has a claim or defense that shares with the main action a common claim or fact

Question 47

What happens if the law of joinder allows a claim to be added but the additional claim is not consistent with the law or subj. matter juris., PJ, or venue?

Answer 47

Claim won’t be allowed without proper SMJ or PJ

• BUT Improper venue won’t keep joinder claim out

Question 48

What is the Bulge Rule?

Answer 48

An impleaded defendant will be subj. to the PJ of a federal court

• If, in addition to any other ground for PJ
• the impleaded defendant is served with process w/in 100 miles of court house

Question 49

When will someone with an interest in an action not be allowed to intervene ?

Answer 49

When permitting him to intervene would destroy diversity