Ch 6: Multiple Parties and Claims

Question 1

What is the purpose of the Federal Rules of Civil Procedure regarding joinder of parties?

Answer 1

To provide for joining parties to existing litigation for efficiency and economy

Question 2

What governs permissive joinder?

Answer 2

Rule 20

Question 3

Under Rule 20(a)(1), when may persons join as plaintiffs?

Answer 3

If they assert any right to relief jointly, severally, or in the alternative regarding the same transaction or occurrence and any question of law or fact common to all will arise

Question 4

Under Rule 20(a)(2), when may persons join as defendants?

Answer 4

If any right to relief is asserted against them jointly, severally, or in the alternative regarding the same transaction or occurrence and any question of law or fact common to all will arise

Question 5

What does Rule 20(a)(3) state about the extent of relief among joined parties?

Answer 5

The same relief need not be demanded among joined plaintiffs or against joined defendants

Question 6

What protective measures can a court take under Rule 20(b)?

Answer 6

Order separate trials on any claims joined or make any other order to prevent delay or undue expense

Question 7

What is required for subject matter jurisdiction in joined parties?

Answer 7

A plaintiff or defendant sought to be joined must meet the requirements of federal subject matter jurisdiction

Question 8

Under § 1367(b), what limitation exists for joinder of defendants in diversity jurisdiction cases?

Answer 8

Supplemental jurisdiction does not apply to defendants sought to be joined under permissive joinder

Question 9

Under Rule 19, what are the conditions for compulsory joinder?

Answer 9

A necessary party must be joined if complete relief cannot be provided, disposition may impair the person’s interest, or absence would subject parties to substantial risk of multiple obligations

Question 10

What are the criteria for intervention as of right under Rule 24(a)(1)?

Answer 10

A federal statute confers the right and the nonparty timely moves to intervene

Question 11

What must a nonparty show to intervene under Rule 24(a)(2)?

Answer 11

Interest in the property or transaction, potential impairment of that interest, and inadequate representation by existing parties

Question 12

What does Rule 18(a) allow regarding joinder of claims?

Answer 12

A party may join as many independent or alternative claims against an opposing party as they may have

Question 13

What is a counterclaim?

Answer 13

A claim for relief made against an opposing party after an original claim has been made

Question 14

What is the time frame for serving an answer to a counterclaim?

Answer 14

Within 21 days of service

Question 15

What must a court have to permit a counterclaim?

Answer 15

Subject matter jurisdiction over the counterclaim

Question 16

What is the significance of complete diversity in supplemental jurisdiction?

Answer 16

For multiple plaintiffs joining under Rule 20, supplemental jurisdiction can exist for claims that do not meet the statutory amount if complete diversity is maintained

Question 17

What does Rule 22 allow in the context of interpleader?

Answer 17

Persons with claims that may expose a plaintiff to double or multiple liability may be joined as defendants

Question 18

What is required for federal statutory interpleader under § 1335?

Answer 18

Diversity jurisdiction is met if any two adverse claimants are citizens of different states, and the property must be worth $500 or more

Question 19

What is the requirement for the stakeholder in statutory interpleader?

Answer 19

To deposit the property at issue or post a bond in an appropriate amount

Question 20

What factors does a court consider for the timeliness of intervention?

Answer 20

• Length of time the movant knew of the interest being threatened
• Prejudice to existing parties if intervention is permitted
• Prejudice to the movant if intervention is denied

Question 21

What happens if a necessary party cannot be joined due to jurisdictional issues?

Answer 21

The court must determine whether the action should proceed among existing parties or be dismissed

Question 22

What is the significance of tortfeasors facing joint and several liability in compulsory joinder?

Answer 22

They are not considered necessary parties under Rule 19

Question 23

What jurisdictional requirement must be met for intervention claims?

Answer 23

A claim of an intervenor must be supported by its own jurisdictional basis

Question 24

What does Rule 24(b) state about permissive intervention?

Answer 24

The court may allow intervention upon a timely motion if the movant has a conditional right under a federal statute or shares a common question of law or fact

Question 25

What is the general requirement for venue in interpleader actions under Rule 22?

Answer 25

Federal venue requirements must be satisfied

Question 26

What is the time frame for serving an answer to a counterclaim?

Answer 26

21 days of service. ## Footnote Rule 12(a)(1)(B)

Question 27

What is required for a federal court to have subject matter jurisdiction over a counterclaim?

Answer 27

It must arise out of the same transaction or occurrence as the original claim. ## Footnote Compulsory counterclaims generally fall under supplemental jurisdiction.

Question 28

Define a compulsory counterclaim.

Answer 28

A claim that arises out of the same transaction or occurrence as the opposing party's claim and does not require adding another party. ## Footnote Rule 13(a)(1).

Question 29

Under what conditions is a pleader not required to make a claim as a counterclaim?

Answer 29

* The claim was the subject of another pending action at the time the action was commenced * The opposing party's action is in rem or quasi in rem and no other counterclaim is asserted. ## Footnote Rule 13(a)(2).

Question 30

What happens if a party fails to assert a compulsory counterclaim?

Answer 30

They waive the right to sue on the claim and are generally precluded from ever suing on it in federal court.

Question 31

What is a permissive counterclaim?

Answer 31

A claim that is not compulsory and a party has discretion to raise it in the current action or a separate one. ## Footnote Rule 13(b).

Question 32

Who can a third-party defendant file a counterclaim against?

Answer 32

Either the original defendant or the original plaintiff.

Question 33

Define a third-party defendant.

Answer 33

A party brought into a lawsuit by an original defendant based on a theory of liability for damages owed to the original plaintiff.

Question 34

What governs whether a third-party defendant's counterclaim is compulsory or permissive?

Answer 34

The requirements of Rule 13(a)–(b).

Question 35

What is a crossclaim?

Answer 35

A claim made against a co-party, such as a claim by a defendant against another defendant.

Question 36

Under what conditions can a pleading state a crossclaim?

Answer 36

* The claim arises out of the same transaction or occurrence as the original action or counterclaim * The claim relates to any property that is the subject matter of the original action. ## Footnote Rule 13(g).

Question 37

Is a party required to assert a crossclaim against a co-party?

Answer 37

No, it is not mandatory.

Question 38

What must a crossclaim fall within for it to be valid?

Answer 38

The subject matter jurisdiction of the federal court.

Question 39

What satisfies personal jurisdiction for a crossclaim?

Answer 39

Parties being already before the court.

Question 40

What does Rule 14 govern?

Answer 40

Third-party claims (impleader).

Question 41

What is an impleaded claim?

Answer 41

Claims made by a defending party against a nonparty for all or part of the defending party's liability on an original claim.

Question 42

What must a defending party do to assert a third-party claim?

Answer 42

Serve a summons and third-party complaint on the nonparty. ## Footnote Rule 14(a)(1).

Question 43

What must exist for a third-party claim to proceed?

Answer 43

Subject matter jurisdiction must fall within federal court's jurisdiction.

Question 44

What must personal jurisdiction exist over for impleader to apply?

Answer 44

The third-party defendant.

Question 45

What must a class action satisfy for federal subject matter jurisdiction?

Answer 45

It can invoke federal question jurisdiction or diversity jurisdiction.

Question 46

What are the four basic requirements of Rule 23(a) for a class representative?

Answer 46

* Numerosity * Commonality * Typicality * Adequacy

Question 47

What does Rule 23(b)(1) address regarding class actions?

Answer 47

The risk of prejudice from separate actions.

Question 48

What does Rule 23(b)(2) allow for class actions?

Answer 48

Certification for classes seeking final injunctive or declaratory relief.

Question 49

Under what condition can a class be certified under Rule 23(b)(3)?

Answer 49

If common questions of law or fact predominate over individual questions.

Question 50

What is the minimum number of class members generally presumed to satisfy numerosity?

Answer 50

40 or more members.

Question 51

What is the significance of the Class Action Fairness Act of 2005 (CAFA)?

Answer 51

It made it easier to satisfy federal subject matter jurisdiction for certain large class actions.

Question 52

What are the five requirements for class actions under CAFA?

Answer 52

* At least 100 members * Primary defendants not being government entities * No certain securities-related cases * Aggregate amount in controversy exceeding $5,000,000 * Minimum diversity exists.

Question 53

What must occur for a class action to be certified?

Answer 53

The court must determine by order whether to certify the action as a class action.

Question 54

What notice is required for Rule 23(b)(3) class actions?

Answer 54

The best notice practicable, including individual notice to identified members.

Question 55

Under what circumstances can class action notices be at the court's discretion?

Answer 55

For class actions under Rule 23(b)(1) and (b)(2).

Question 56

What is required for claims of a certified class to be settled or dismissed?

Answer 56

Approval of the court.

Question 57

What must the court find to approve a settlement proposal?

Answer 57

It must be fair, reasonable, and adequate.

Question 58

What opportunity must be provided to class members if a class action is certified under Rule 23(b)(3)?

Answer 58

A second opportunity to opt out of the litigation.

Question 59

What is a shareholder derivative action?

Answer 59

An action brought by a shareholder on behalf of a corporation to enforce a right of the corporation that the corporation has failed to enforce. ## Footnote This type of action is not generally subject to the Rules for a class action.

Question 60

What must a shareholder demonstrate in a derivative action regarding demands?

Answer 60

The shareholder must plead with particularity that a demand was made on the directors and, if required by state law, also made a demand on the shareholders. ## Footnote If a demand was not made, the shareholder must explain why.

Question 61

What status must a shareholder assert in a derivative action?

Answer 61

The shareholder must assert status as a shareholder at the time the transaction occurred or that this status was subsequently gained by operation of law. ## Footnote Examples include gaining status by inheritance.

Question 62

What must a shareholder allege regarding the nature of the action in a derivative suit?

Answer 62

The shareholder must allege that the action is not a collusive effort to impart jurisdiction on the court. ## Footnote This requirement is outlined in Rule 23.1.

Question 63

What is the consequence for class members who do not opt out of a class action certified under Rule 23(b)(3)?

Answer 63

They are bound by the judgment even if they did not have minimum contacts with the forum state. ## Footnote This principle is established in Phillips Petroleum Co. v. Shutts.

Question 64

What is required for class members in a class action to have a second opt-out opportunity?

Answer 64

The court may refuse to approve the settlement unless class members are given a second opportunity to opt out of the litigation. ## Footnote This is specified in Rule 23(e)(4).

Question 65

What happens if a class member objects to a settlement in a class action?

Answer 65

The class member may appeal the court’s approval of the settlement. ## Footnote This applies even if the class member is not a named representative.

Question 66

In general, who does a valid judgment bind in a class action?

Answer 66

A valid judgment binds all members of the class, except those who opted out. ## Footnote This is a key distinction in class action law.

Question 67

True or False: A class member who opts out of a class action is bound by the settlement.

Answer 67

False ## Footnote Only those who do not opt out are bound by the settlement.

Question 68

What is the legal citation for the case that established the precedent regarding the binding nature of judgments in class actions?

Answer 68

Phillips Petroleum Co. v. Shutts, 472 U.S. 797 (1985) ## Footnote This case is significant for understanding jurisdiction in class actions.

Question 69

What is the significance of the case Wal-Mart Stores, Inc. v. Dukes, 564 U.S. 338 (2011)?

Answer 69

It determined that a claim for backpay due to alleged gender discrimination could not be certified in an action seeking injunction and declaratory relief for such discrimination. ## Footnote This case highlights issues of class certification.

Question 70

Who can sue or be sued on behalf of minors and incompetent individuals?

Answer 70

Through a guardian ## Footnote This is to ensure legal representation for those unable to act on their own.

Question 71

What is required for partnerships to sue or be sued as an entity?

Answer 71

Jurisdiction must be based on a federal question ## Footnote If based on diversity, every partner must be listed.

Question 72

What is permissive joinder in civil procedure?

Answer 72

Plaintiffs and defendants may join in one action if: * Any right to relief is asserted jointly, severally, or arising out of the same transaction * A common question of law or fact arises.

Question 73

What is required for subject matter jurisdiction in permissive joinder?

Answer 73

Must exist over the action with joined parties ## Footnote In diversity actions, complete diversity is required.

Question 74

What is compulsory joinder?

Answer 74

Joinder of a required party when their absence: * Prevents complete relief * Prejudices their interest * Results in inconsistent obligations.

Question 75

What are the conditions for intervention as of right?

Answer 75

A nonparty can intervene if: * They have an interest in the subject matter * Disposition may impair their interest * Existing parties do not adequately represent their interest.

Question 76

What is permissive intervention?

Answer 76

A court may allow intervention if: * The nonparty has a conditional right under a federal statute * Their claim shares a common question with the original action.

Question 77

What is interpleader?

Answer 77

Allows a person holding property to force all potential claimants into a single lawsuit.

Question 78

What are the two types of interpleader in federal court?

Answer 78

Rule interpleader and statutory interpleader.

Question 79

What is the subject matter jurisdiction requirement for rule interpleader?

Answer 79

Complete diversity between stakeholder and claimants + amount in controversy > $75,000 or federal question jurisdiction.

Question 80

What is the personal jurisdiction requirement for statutory interpleader?

Answer 80

Nationwide personal jurisdiction and service of process permitted.

Question 81

What is permissive joinder of claims?

Answer 81

A party may join independent or alternative claims against an opposing party.

Question 82

What are compulsory counterclaims?

Answer 82

Arise out of the same transaction as the opposing party's claim and do not require adding another party.

Question 83

What is a crossclaim?

Answer 83

A claim made against a coparty, arising out of the same transaction or occurrence.

Question 84

What is an impleader?

Answer 84

Claims made by a defending party against a nonparty for potential liability on an original claim.

Question 85

What are the basic requirements for class actions?

Answer 85

Must satisfy: * Numerosity * Commonality * Typicality * Adequacy.

Question 86

What is the subject matter jurisdiction requirement for class actions?

Answer 86

Named class representatives must be diverse from the adverse party, and at least one class member must meet the amount-in-controversy requirement.

Question 87

How can claims of a certified class be settled or dismissed?

Answer 87

Only with court approval and notice to all class members.