Topics 9 - 13 MC3 Flashcards
(116 cards)
Rule 55 creates a two-step process
- Obtain a default. Rule 55(a)
- Convert the default to a default judgment by establishing damages. Rule 55(b)
Rule 55(a) – Obtaining a default
“When a party against whom a judgment for affirmative relief is sought has failed to plead or otherwise defend, and that failure is shown by affidavit or otherwise, the clerk must enter the party’s default.”
Rule 55(a) – Obtaining a default. Who can this be used against?
D if D fails to answer (most common use);
P as the counter-defendant (if D has a counterclaim and P fails to answer the counterclaim)
Rule 55(b) – Turning a default into a default judgment
The default is treated as an adjudication on the merits in favor of the moving party.
It is as if the moving party had won their claims at trial.
The key to turning a default into a default judgment is
establishing the amount of damages
Rule 55(b)(1) Turning a default into a default judgment
“If the plaintiff’s claim is for a sum certain or a sum that can be made certain by computation, the clerk—on the plaintiff’s request, with an affidavit showing the amount due—must enter judgment for that amount and costs against a defendant who has been defaulted for not appearing … .”
What is a sum certain?
A sum certain is an amount that can be determined with certainty from the available information without resort to additional evidence.
The key is whether the amount of damages can be calculated without needing an evidentiary hearing.
Not a sum certain
A claim for pain and suffering is not a “sum certain” because there is no simple and undisputed way of determining what pain and suffering is worth.
Other sorts of hard to calculate damages (like lost profits or reputational damage) are also not sum certains.
Rule 55(b)(2) Turning a default into a default judgment
“In all other cases, the party must apply to the court for a default judgment. … The court may conduct hearings … when, to enter or effectuate judgment, it needs to …
determine the amount of damages …”
Is notice a requirement for default judgment
yes
Rule 41(b) – Involuntary Dismissals
If the plaintiff fails to prosecute or to comply with these rules or a court order, a defendant may move to dismiss the action or any claim against it. Unless the dismissal order states otherwise, a dismissal under this subdivision (b) and any dismissal not under this rule—except one for lack of jurisdiction, improper venue, or failure to join a party under Rule 19—operates as an adjudication on the merits.
What is a “failure to prosecute”?
The rule does not include a bright line definition, and courts have acknowledged that involuntary dismissal is an extreme sanction. Nevertheless, courts look for a “pattern of delay.”
What is a “failure to prosecute”?
The rule does not include a bright line definition, and courts have acknowledged that involuntary dismissal is an extreme sanction. Nevertheless, courts look for a “pattern of delay.”
A dismissal under Rule 41(b) is treated as “an adjudication on the merits.”
what does this mean
This means that a plaintiff who has their claim involuntarily dismissed generally cannot re-file the same claim in a later action. It will be barred by the doctrine of claim preclusion b/c the merits of the claim were already adjudicated in D’s favor in the earlier action.
Rule 41(a)1 – Voluntary Dismissal
P can obtain a voluntary dismissal without leave of court:
If P files a notice of dismissal before D answers; or
If all the parties stipulate to a voluntary dismissal.
does a voluntary dismissal prevent P from re filling the claim in a later lawsuit
No
Common reasons for voluntary dismissal include:
P realizes that venue is improper
P realizes that D is not subject to PJ in forum
P realizes that court lacks SMJ over claims
Rule 41(a)(2) Voluntary Dismissal
“Except as provided in Rule 41(a)(1), an action may be dismissed at the plaintiff’s request only by court order, on terms that the court considers proper.”
Rule 41(a) – Voluntary Dismissal Two important caveats:
A voluntary dismissal only applies to P’s claims. If D has already filed an answer and counterclaim, P may be able to use Rule 41 to dismiss P’s claims, but it does not result in a dismissal of D’s counterclaim(s).
“If a defendant has pleaded a counterclaim before being served with plaintiff’s motion to dismiss, the action may be dismissed over the defendant’s objection only if the counterclaim can remain pending for independent adjudication.” (R. 41(a)(2))
Rule 23(e) - Settlement of Class Actions
“The claims, issues, or defenses of a certified class … may be settled, voluntarily dismissed, or compromised only with the court’s approval.”
“If the proposal would bind class members, the court may approve it only after a hearing and only on finding that it is fair, reasonable, and adequate …”
Why an exception for class actions?
Possibility of internal conflicts between class representatives/class counsel and the rest of the class. Means the judge needs to review any settlement to make sure it is fair to the class.
Congress can impose statutory limits on certain kinds of settlements or impose requirements that must be met for the settlement to be valid.
E.g., age discrimination claims can only be settled under certain conditions (like giving the settling party a week to revoke the settlement)
After you reach agreement on the key terms of the settlement . . . what next?
Once you have reached an agreement about the key terms of the settlement, you must decide how to give effect to the agreement.
What is the most significant problem with an oral agreement not to sue?
Statute of frauds may prevent you from proving the existence of the contract.
In other words, an oral agreement not to sue may not be enforceable.
Pre-Filing Written Agreement
If there is no existing litigation, then a written agreement that releases any claims the prospective plaintiff might have and includes a promise not to sue is probably the way to go. This is usually called a release.