JOINDER OF CLAIMS Claims arising out of the same factual transaction may be tried together. Harris v. Avery. 1.

In general, for every case in federal court you need both a. Power: Subject matter jurisdiction and personal jurisdiction b. Permission under a Federal Rule of Civil Procedure General claim joinder by under Rule 18(a) a. can bring all claims against in a single case b. Must have SMJ over all of the claims c. Power comes from 1367; Permission comes from Rule 18 d. Rule 42 = The court in its discretion can sever properly joined cases to prevent prejudice. Counterclaim (C/C): attacking . a. Compulsory Counterclaim: must bring the lawsuit or will permanently lose the right to do so i. Counterclaim is compulsory where there is (1) overlap of issues, (2) overlap of evidence, (3) res judicata would later bar its assertion, and (4) logical relationship between claims. U.S. v. Heyward Robinson Co. ii. Rule 13 1. Rule 13(a): C/C is compulsory if it arises out of the same set of transactions or occurrences 2. Rule 13(e): Allows amendment and bringing C/C later when C/C arises after the initial pleading 3. Rule 13(f): Allows amendment and bringing C/C after initial pleading if through oversight, inadvertence or excusable neglect iii. Exceptions to Rule 13(a): 1. If has already filed the C/C in another court, he does not have to move it 2. does not have to bring C/C in quasi-in-rem cases because the case is against the property, not the person b. Permissive Counterclaim: Rule 13(b). May plead C/C but not necessary to do so. C/C is an unrelated claim not arising from the same transaction/occurrence but over which the court still has SMJ. c. Compulsory C/C always satisfies supplemental jurisdiction because the Central Nexus Of Fact (CNOF) test is the same as the transaction/occurrence test used for C/C. d. Permissive is never supplemental, and so must have independent grounds to support SMJ. Crossclaims (X/C): Rule 13(g). Claims against co-parties. a. Same transaction/occurrence test b. X/C are never compulsory but are always at the discretion of the claimant c. May occur between s or between s. Joinder of Additional Parties to X/C or C/C a. Rule 13(h) brings in an outside party by making them party to C/C or X/C b. Must be in accord with Rule 19 and Rule 20 c. Outside party must align with a party already in the case. d. Optional under Rule 13(h)

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JOINDER OF PARTIES 1. General Party Joinder Rules a. Permissive Joinder: Rule 20. Those who may be joined. i. The claims arise from the same transaction / occurrence; AND ii. Raise at least one common question or law or fact iii. Consolidation: Rule 42. Where actions involving a common question of law or fact are pending before the same court, the court may order the actions to be consolidated into one action. b. Necessary & Indispensable Parties: Rule 19. Those who must be joined. i. The party is necessary if EITHER: 1. No complete relief is available to current parties without the outsider, OR 2. Outside party has an interest in the lawsuit that may be practically impaired (not legally impaired) by outcome of the lawsuit AND current party would be subject to multiple liabilities. ii. Is joinder feasible? 1. Does the court have personal jurisdiction over the person? 2. Does joinder destroy diversity? iii. If joinder is not feasible, go to Rule 19(b) to determine whether case should proceed without the outsider, or should be dismissed. 1. To what extent might a judgment in the persons absence be prejudicial to the outsider or other party? 2. To what extent can prejudice be lessened or avoided? 3. Will judgment in the persons absence be adequate? 4. Will have an adequate remedy (other forum where all parties may be sued) if the case is dismissed? iv. Rule 12(b)(7) is a dismissal for failure to join an outsider under this Rule. can usually file the suit elsewhere if it is dismissed under Rule 12(b)(7). Impleader: Rule 14. a. Permitted when filed within 10 days of serving Answer (or later with the leave of court) b. Derivative liability theory (payback): brings in 3d party to recover his loss. If I have to pay , then you have to pay me. c. New party becomes 3d Party (3) d. becomes the in his action against the new party e. 3 may make a defense against or may c/c, or x/c, or may bring in another 3, or may make claims against the original . f. Original may make claims against 3 if SMJ is met. g. SMJ must be met and must arise from the same transaction/occurrence h. Judge has the discretion to allow impleader Interpleader: Rule 22. a. Procedural mechanism which allows someone who holds property which has several claimants to force all claims into one trial. b. Interpleader may only be used if there is a genuinely limited fund or piece of property. c. Pure Interpleader: Stakeholder deposits property with court and walks away d. Bill in the Nature of Interpleader: Stakeholder is also a claimant e. Rule Interpleader: i. Allows interpleader when minimum diversity is not possible. ii. Normal basis for jurisdiction: complete diversity & greater than $75,000 iii. Venue is the same as normal: either where claim arose or where all s reside

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iv. Service is by Rule 4 if stakeholder is not a claimant and all claimants are from
the same state.

f. Statutory Interpleader: i. 1335: SMJ is minimum diversity & greater than $500 ii. 1397: Venue is where any claimant resides iii. 2361: Nationwide service of process is allowed 4.
Intervention: Rule 24. Outsider puts himself into the litigation. a. Policy Issues: i. Do not want repeat litigation, BUT ii. Original litigants have a right to keep their litigations uncluttered b. Intervention as Right: Rule 24(a). i. Statute confers unconditional right to intervene, AND ii. Must have direct interest in the lawsuit, AND iii. Must show that their interest will be practically impaired if intervention is refused, AND iv. Must show that their interests are not already adequately represented by a current party. c. Permissive Intervention: Rule 24(b). i. Only has to have a claim or defense with at least one common question of law or fact ii. Judges discretion to allow d. Miscellaneous i. In diversity case, cannot intervene as with someone from the same state ii. Intervention gives persons all the rights as a party iii. If the intervener cannot enter the lawsuit without destroying diversity, then must look to Rule 19(b) to see if they must be joined and whether the suit should be dismissed or continued.

Joinder Device General Claim Joinder

Rule Number Rule 18

Test None

Counterclaim

Rule 13(a) Compulsory c/c Rule 13(b) Permissive c/c Rule 13(g)

Same transaction Logical relation Any complaint not arising out of t/o Same t/o

SMJ Check Check all three 1331 1332 1367 Always CNOF test Cannot use supp. juris. Need independent base Supp. Juris. If claim brought by

Crossclaim

Permissive Party Joinder

Rule 20

Same t/o and common issue of law or fact 1. w/o outsider no complete relief for party 2. outsider interest impaired by lawsuit 3. a current party might have multiple liability Outsider must be made a co- on CC or XC in accordance w/ Rule 19 or 20 Derivative liability Pay back scheme Same t/o test

Must Check

Compulsory Party Joinder

Rule 19

Checkfed ? no problem If diversity and outsider destroys then go to 19(b) or see if should be dismissed. Check

Joinder of Additional parties to a CC or XC

Rule 13(h) Co-defendant to someone already a party Rule 14 Third Party Rule 14

Impleader

Check but usually has supp. juris if Check but usually supp. juris except in diver. An tries to bring against non-diverse (a) Check to see if compulsory party joinder (b) Checkneed independent basis

Post Impleader Claims

Intervention (a)As a Right

(a) Rule 24(a)

(b)Permissive

(b) Rule 24(b)

(a) 1. interest in property + 2. practically impaired + 3. not adequately represented (b) common issue law or fact