Multiple Parties & Claims Flashcards
Joinder of Claims
Plaintiff may join any claims she has against the ▵
Permissive Joinder
Plaintiff may join if:
- Plaintiff’s claims arise from same transaction or occurrence AND raise a common question of law or fact
Compulsory Joinder of Necessary Parties
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
Compulsory Joinder - Necessary Parties
- 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
Compulsory Joinder - Jurisdictional Requirements
- Personal Jurisdiction, AND
- Joinder will not destroy diversity
- If it does, court can dismiss or
- proceed if it believes it can give effective relief
Compulsory Joinder - Effect of Failure
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
Counterclaim
Claim against opposing party
Compulsory Counterclaim
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)
Permissive Counterclaim
Does not arise out of the same transaction or occurrence, ▵ may assert permissive counterclaim in another action
Cross-Claim
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
Impleader
▵ 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
Impleader - Timing
Within 14 days of answering complaint or by leave of court
Impleader - Requirements
- File Third Party Complaint
- Serve Process on Third Party ▵ (Personal Jurisdiction)
- SMJ - Diversity, Federal Question, OR Supp. J
- Avail. since claim for indem. or cont. will arise out of common nucleus of operative fact
Interpleader
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
Statutory Interpleader
Easier then rule 22
- doesn’t require complete diversity,
- has relaxed venue &
- nationwide service of process
Statutory Impleader - Jurisdiction
- Minimal Diversity - only 1 claimant must be diverse from 1 other claimant AND
- AIC = $500 or more
Interpleader - Venue
Any district where any claimant resides
Statutory Interpleader - Service of Process
- Nationwide
- no PJ issues
In a statutory interpleader case, where does a federal court have jurisdiction?
Nationwide
Rule 22 Interpleader - jurisdiction
- Complete Diversity - Stakeholder must be diverse from every claimant, AND
- AIC = More than $75K
Rule 22 Interpleader - Venue
Normal venue rules apply
Rule 22 Interpleader - Service of Process
Normal services rules apply
- So, PJ must be satisfied
Class Action Requirements
Requirements:
- Too numerous for joinder to be practical 25<40
- Questions of law or fact common to class
- Claims or defense of representative parties must be typical, AND
- Rep. will fairly & adequately protect interest of class
Categories for Class Actions
- Anti-prejudice Class Actions
- Injunctive & Declaratory Relief Class Actions
- Damage Class Actions
Anti-Prejudice Class Action
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
- Adjudication of individual members who race to court 1st would be:
Injunctive & Declaratory Relief Class Actions
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
Damage Class Actions
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
Class Actions - Notice to Class
Anti-Prejudice Class Actions
Discretionary
- Court may direct appropriate notice to any class certified as a prejudice class action
Class Actions - Injunctive & Declaratory Relief Class Actions
Notice
Discretionary
- Ct. may direct appropriate notice to any class certified as an injunctive & declaratory relief class
Class Actions - Damage Class Actions
Notice
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
Certification of Class
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
Class Actions - Personal Jurisdiction
don’t have to meet PJ requirement for each class member, Only need PJ over the ▵
Class Action - SMJ
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
Class Action Fairness Act
Statutory grant of SMJ over class action suit
Class Action Fairness Act - Jurisdictional Requirements
Act gives a fed. ct. original jurisdiction over class action suit if:
- Minimal Diversity - any member of class is diverse from any ▵, AND
- AIC > $5 million - Aggregated claims of class exceed $5 million
Class Action Fairness Act - Mandatory Decline of Jurisdiction
District court must decline jurisdiction under CAFA if:
- More than 2/3 of proposed class members are citizens of the state where action is filed
- ▵ from whom significant relief is sought is citizen of state where action filed, AND
- Principal injuries occurred in the state where action filed
Class Action Fairness Act - Discretionary Decline of Jurisdiction
Federal ct. may decline jurisdiction under CAFA or remand if originally removed from state court if:
- More than 1/3 but less then 2/3 of proposed members are citizens of state where action filed, AND
- Primary ▵s are also citizens of state where action filed
Class Actions - Settlements & Dismissals
Requirements
- Court Approval AND
- Notice
Settlements & Dismissals - Court Approval
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
Settlements & Dismissals - Notice requirement
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
Class Actions - Attorneys Fees
Fixed by Court
- so Absent members of class are protected
- A separate motion is required for the courts approval of attorney fees
After a party has been impleaded into a suit, the impleaded party may file what claims? The orig. party may file what claims?
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
What are the steps if joinder is mandatory ?
If the absent party is necessary:
- Join the party if available
- If the nec. party can’t be joined - determine whether the nec. party is indispensable
- If the party is indispensable, dismiss the case
What is rule 24 intervention?
When a non-party attempts to join a suit through its own initiative
When does intervention as a right occur?
Court must allow for intervention if:
- The party claims an int. relating to the subj. matter of the action AND
- Absent intervention, the party may not be able to protect their interest
When is permissive intervention available?
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
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?
Claim won’t be allowed without proper SMJ or PJ
- BUT Improper venue won’t keep joinder claim out
What is the Bulge Rule?
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
When will someone with an interest in an action not be allowed to intervene ?
When permitting him to intervene would destroy diversity
