Terms I Need to Review Flashcards
What is issue preclusion?
A claimant is precluded from litigating an issue in a subsequent trial if (1) the previous case ended in a final judgment on the merits, (2) the same issue was litigated and determined in the previous, (3) the issue was the basis of the judgment in the previous case, (4) the person against whom preclusion is issued was a party to the previous case or in privity with a party to the previous case, and (5) if a non-party to the previous suit is invoking issue preclusion as the plaintiff in the present case, courts must assess whether issue preclusion is fair. In assessing fairness, courts will consider whether (1) the party to be bound had a full and fair opportunity to litigate the previous case, (2) the party to be bound had a strong incentive to litigate the previous case, (3) the party asserting issue preclusion could have easily joined to the previous case, and (4) there have been no inconsistent findings on the issue.
What are the rules for class actions?
To qualify as a class action four requirements must first be met: (1) numerosity in class members, (2) common issue among class members, (3) typicality in the class claims, and (4) adequate class representation. Next, the class action must fall into one of three categories: (1) the class is necessary to avoid harm or prejudice, (2) the class seeks injunctive of declaratory relief (most common), or (3) common questions predominate over individual questions such that the class action is a superior method to handle the dispute.
Class members in the third type of class action must be notified that they are in a class so that they can have a chance to opt out and not be bound by the judgment. All other members of a class will be bound by the judgment denied in a class action.
Notice of a dismissal or settlement of a class action must be given to all members of the class in a manner directed by the court. The court must approve settlement or dismissal of a class action.
Class actions can be brought under the Class Action Fairness Act if (1) there are at least 100 members, (2) any class members is of diverse citizenship with any defendant, and (3) the aggregated claims of the class exceed $5 million.
What are the rules under the Taking Clause?
The Fifth Amendment provides that private property may only be taken (1) for public use and (2) the government must pay just compensation. This applies to personal property, real property, and certain intangible property.
Taking Generally: A taking occurs if there is a confiscation of a person’s property or a permanent or regular physical occupation of a person’s property by the government.
Taking - Temporary Occupation: Temporary occupations by the government may also be a taking, depending on factors like the degree of invasion, the duration, the government’s intention, the foreseeability of the result, the character of the property, and the interference with the use of the property.
Taking - Development Exception: The government cannot condition a land permit on a taking unless (1) the government can show there is an essential nexus between the condition and the proposed development (that is, the condition relates to a legitimate government interest) and (2) the adverse impact of the proposed development is roughly proportional to the loss caused to the property owner from the forced transfer.
Taking - Denial of All Economic Value: If a government regulation denies a landowner of all economically viable use of their land, the regulation amounts to a taking unless principles of nuisance or property law make the use prohibitable.
Taking - Decreasing Economic Value: In determining whether a decrease in economic value (e.g., prohibiting the most beneficial use) amounts to a taking, courts will consider (1) the government interests sought to be promoted; (2) the diminution in value to the owner; and (3) whether the regulation substantially interferes with distinct, investment-backed expectations of the owner.
Public Use: If the government’s action is rationally related to a legitimate public purpose, the public use requirement is satisfied.
Just Compensation: Measured by the fair market value of the property taken at the time of the taking.
What are the rules for life tenants?
A life tenant is entitled to all the ordinary uses and profits of the land, but he cannot lawfully do any act that would injure the interests of the person who owns the remainder or the reversion. If a live tenant conveys their interest, the grantee has a life estate pur autre vie.
Waste - Natural Resources: A life tenant may not consume or exploit natural resources on the property. However, there are several exceptions to this rule: (1) where necessary for repair and maintenance of the land, (2) when a life tenant is expressly given the right to exploit such resources, (3) the land was used in exploitation prior to the grant and the grantor intended the life tenant to have the right to such exploitation, and (4) the land is suitable only for such exploitation.
Duty to Pay Carrying Costs: This duty is limited to the extent of the total income or profits derived from the land since the life tenant acquired ownership of the life estate. If the life tenant is in possession of the land herself, the liability for costs is limited to an amount equal to the economic benefit derived by her from the land or the reasonable market value of its use (rental value), whichever is greater. If the land is unproductive, the life tenant has not obligation to pay carrying costs.
Taxes: A life tenant has an obligation to pay all ordinary taxes. If a future interest holder pays these taxes, the future interest holder is entitled to reimbursement and may compel the life tenant’s contribution or even subject the estate to a lien for the amount expended.
Open Mines Doctrine: If mining was done before the life estate began, the life tenant may continue to mine the property but is limited to the mines already open.
What are the rules for joinder?
Permissive Joinder: Claims by multiple plaintiffs against multiple defendants must (1) be part of the same transaction or occurrence and (2) involve at least one common question of law or fact. There must be SMJ over these claims.
Compulsory Joinder: An party not joined to the case may be a necessary absentee party. In this case, joinder may be necessary where (1) the court cannot accord complete relief to the existing parties, (2) the absentee’s interest may be harmed if he is not joined (most common), or (3) the absentee claims an interest that subjects a party to a risk of multiple obligations. Joint tortfeasers are never necessary.
Indespensible Party: To add an absentee party, the court must have PJ over the absentee and SMJ over any claims brought by or against the absentee. If the absentee party cannot be joined (e.g., no PJ), courts must determine whether to proceed or dismiss the case. Courts will look at the (1) the extent of prejudice to the absentee or available parties, (2) the extent to which the prejudice can be reduced or avoided by means of protective provisions in the judgment, the shaping of relief, or other measures, (3) the adequacy of a judgment rendered without the absentee, and (4) whether the plaintiff will have an adequate remedy in another forum if the case is dismissed for nonjoinder.
What are the rules for strict liability?
Animals: An owner of an animal is not strictly liable for injuries caused by the animal unless the owner knows the animal has dangerous propensities that are not common to the species. An owner of an animal is also strictly liable for ALL injuries caused by wild animals. However, these rules do not apply to trespassers. A trespasser can only recover if he proves the owner was negligent.
Abnormally Dangerous Activities: A defendant is strictly liable for abnormally dangerous activities. These activities (1) create a foreseeable risk of serious harm even when reasonable care is exercised by all actors and (2) are not a matter of common usage in the community. Strict liability only applies to foreseeable plaintiffs. Examples include explosives, the transportation of dangerous chemicals, and anything involving high amounts of radiation or nuclear energy.
Strict Product Liability: The plaintiff must show (1) the defendant is a merchant (i.e., a commercial supplier), (2) the product is defective, (3) the product was not substantially altered since leaving the defendant’s control, and (4) the plaintiff was making a foreseeable use of the product at the time of the injury.
Merchants include commercial lessors and parties in the distribution chain but not casual sellers and sellers of services.
There are three main types of defects: manufacturing, design, and information. Manufacturing defects arise if the product is more dangerous than an ordinary consumer would otherwise expect. Design defects arise if the risks associated with the product outweigh the product benefits. The plaintiff must show there was an alternative design that was safer, practical, and economically feasible. Information defects arise if the product does not contain adequate warnings or instructions as to the risks involved in using the product that may not be apparent to users. The warning or instruction must be prominent, comprehensible, and provide information about mitigating risks.
If the product moved through normal channels of distribution, a court will infer that the product was not altered and that the defect existed when the product left the defendant’s control.
Misuse of the product may be foreseeable.
Physical injury or property damages must be shown.
Disclaimers are ineffective.
Defenses: Plaintiff knew of the danger and their unreasonable conduct was the cause of the harm from the wild animal, abnormally dangerous condition, or defective product (i.e., assumption of risk). Many jurisdictions also apply comparative negligence rules to strict liability. Other defenses include unforeseeable product misuse and adequate warnings.
What are the rules for performance?
Common Law: A party’s basic duty at common law is to substantially perform all that is called for in the contract. A breach of contract is minor if the obligee gains the substantial benefit of their bargain despite the obligor’s defective performance. A minor breach does not relieve the aggrieved party of their duty of performance under the contract; it merely gives them a right to damages (setoff) for the minor breach. If the obligee does not receive the substantial benefit of their bargain, the breach is considered material. The materiality of the breach is based on (1) the amount of benefit received by the nonbreaching party; (2) the adequacy of compensation for damages to the injured party; (3) the extent of part performance by the breaching party; (4) hardship to the breaching party; (5) negligent or willful behavior of the breaching party; and (6) the likelihood that the breaching party will perform the remainder of the contract. If the breach is material, the nonbreaching party (1) may treat the contract as at an end; that is, any duty of counterperformance owed by them will be discharged, and (2) will have an immediate right to all remedies for breach of the entire contract, including total damages.
UCC: Article 2 generally requires a perfect tender—the delivery and condition of the goods must be exactly as promised in the contract. If goods on their delivery fail to conform to the contract in any way, the buyer may generally reject all, accept all, or accept any commercial units and reject the rest. A buyer’s right to reject is generally cut off by acceptance. A buyer accepts where the buyer indicates to the seller that the goods conform to the requirements or the the buyer will accept the goods even though they do not conform; the buyer fails to reject within a reasonable time after tender or delivery of goods or fails to seasonably notify the seller of their rejection; or the buyer does any act inconsistent with the seller’s ownership. However, a buyer may revoke acceptance if the goods have a defect that substantially impairs their value to the buyer and the buyer accepted the goods on the reasonable belief that the goods would be cured and it has not been or the buyer accepted the goods because of the difficulty of discovering the defect or because of the seller’s assurance that the goods conformed to the contract.
