Pretrial procedures - Joinder of parties and claims (including class actions)

Learning Outcomes

After reading this article, you will be able to identify when parties and claims may or must be joined in a federal civil action, distinguish between permissive and compulsory joinder, explain third-party practice (impleader), and apply the requirements for class actions. You will also understand the jurisdictional and procedural limits on joinder, enabling you to answer MBE questions on these topics with confidence.

MBE Syllabus

For the MBE, you are required to understand the procedural rules and limitations on joining parties and claims in federal court. This article covers:

• The distinction between permissive and compulsory joinder of parties (Rules 20 and 19).
• The rules for joining multiple claims in a single action (Rule 18).
• Third-party practice (impleader) under Rule 14.
• The requirements for class actions under Rule 23.
• The effect of joinder on subject matter jurisdiction and supplemental jurisdiction.
• The limits on supplemental jurisdiction for joined parties and claims.

Test Your Knowledge

Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision.

1. Under Rule 20, which is required for permissive joinder of parties?
   1. Claims must arise out of the same transaction or occurrence and share a common question of law or fact.
   2. All parties must be indispensable.
   3. All claims must arise under federal law.
   4. All parties must be citizens of different states.
2. In a federal diversity class action, which is true regarding the amount-in-controversy requirement?
   1. Every class member must meet the amount-in-controversy requirement.
   2. Only the named class representative(s) must meet the amount-in-controversy requirement.
   3. Class actions are not permitted in diversity cases.
   4. All class members must be citizens of the same state.
3. Under Rule 14 (impleader), a defendant may bring in a third-party defendant only if:
   1. The third-party defendant is jointly liable with the defendant to the plaintiff.
   2. The third-party defendant may be liable to the defendant for all or part of the plaintiff’s claim.
   3. The third-party defendant is a necessary party.
   4. The third-party defendant is a class member.

Introduction

Joinder of parties and claims is a central feature of federal civil procedure, allowing related disputes to be resolved efficiently in a single action. The Federal Rules of Civil Procedure set out when parties and claims may or must be joined, and establish the requirements for class actions. Understanding these rules is essential for answering MBE questions on pretrial procedure.

Key Term: Permissive Joinder The joining of parties or claims in a single action when the claims arise out of the same transaction or occurrence and share a common question of law or fact, as permitted by Rule 20.

Permissive Joinder of Parties (Rule 20)

Permissive joinder allows multiple plaintiffs or defendants to join in one action if:

• The claims arise out of the same transaction, occurrence, or series of transactions or occurrences; and
• There is a common question of law or fact.

Joinder is not required, but is allowed to improve judicial efficiency. Each joined party must have at least one claim meeting these requirements.

Key Term: Compulsory Joinder The required joining of certain parties to an action when their absence would prevent complete relief or risk inconsistent obligations, as governed by Rule 19.

Compulsory Joinder of Parties (Rule 19)

Certain parties must be joined if feasible. A party is necessary if:

• Complete relief cannot be accorded among existing parties without them; or
• Their absence may impair their ability to protect their interest or expose existing parties to multiple or inconsistent obligations.

If joinder is not feasible (for example, if it would destroy diversity), the court decides whether to proceed or dismiss the action.

Joinder of Claims (Rule 18)

A party asserting a claim, counterclaim, crossclaim, or third-party claim may join as many claims as it has against an opposing party, even if unrelated. However, subject matter jurisdiction must exist for each claim.

Key Term: Impleader (Third-Party Practice) A procedure under Rule 14 allowing a defending party to bring in a third party who may be liable to the defending party for all or part of the plaintiff’s claim.

Third-Party Practice (Impleader) (Rule 14)

A defending party (usually a defendant) may bring in a third-party defendant (TPD) who may be liable to the defending party for all or part of the plaintiff’s claim. This is called impleader.

• The TPD’s liability must be derivative (e.g., indemnity, contribution), not direct liability to the plaintiff.
• The TPD may assert defenses against the plaintiff’s claim and may assert claims against the plaintiff if they arise out of the same transaction or occurrence.

Exam Warning

Impleader is not proper if the third party is only alleged to be directly liable to the plaintiff, not to the defendant.

Class Actions (Rule 23)

A class action allows one or more plaintiffs to sue as representatives of a class if:

• The class is so numerous that joinder is impracticable (numerosity).
• There are common questions of law or fact (commonality).
• The claims or defenses of the representatives are typical of the class (typicality).
• The representatives will fairly and adequately protect the interests of the class (adequacy).

The action must also fit one of the categories in Rule 23(b), such as risk of inconsistent results, injunctive relief, or predominance of common questions.

• Only the citizenship of the named class representatives is relevant for diversity jurisdiction.
• Only one named plaintiff’s claim must meet the amount-in-controversy requirement.

Key Term: Class Action A lawsuit in which one or more plaintiffs sue on behalf of a larger group with common legal or factual issues, subject to the requirements of Rule 23.

Supplemental Jurisdiction and Joinder

Supplemental jurisdiction may allow joined claims or parties that do not independently meet subject matter jurisdiction requirements, provided they arise from the same case or controversy as the claim that invoked federal jurisdiction. However, there are limits in diversity cases for claims by plaintiffs against parties joined under Rules 14, 19, 20, or 24.

Worked Example 1.1

Scenario:
Plaintiff A and Plaintiff B are injured in the same car accident involving Defendant X. Both wish to sue X in federal court for negligence.

Question:
Can A and B join as plaintiffs in a single action against X?

Answer:
Yes. Under Rule 20, A and B may permissively join as plaintiffs because their claims arise out of the same occurrence (the accident) and share common questions of law or fact (negligence).

Worked Example 1.2

Scenario:
Defendant Y is sued by Plaintiff C for breach of contract. Y claims that if Y is liable, it is because Supplier Z provided defective goods to Y.

Question:
Can Y bring Z into the action as a third-party defendant?

Answer:
Yes. Y may implead Z under Rule 14, alleging that Z is liable to Y for all or part of C’s claim (e.g., indemnity for defective goods).

Worked Example 1.3

Scenario:
A group of 1,000 consumers sues a manufacturer for a defective product in a federal diversity action. Only the named plaintiff’s claim exceeds $75,000.

Question:
Is the class action proper in federal court?

Answer:
Yes. For diversity class actions, only the named class representative(s) must meet the amount-in-controversy requirement. The citizenship of unnamed class members is disregarded.

Revision Tip

Always check whether supplemental jurisdiction is available for joined claims or parties that do not independently meet subject matter jurisdiction requirements.

Key Point Checklist

This article has covered the following key knowledge points:

• Permissive joinder allows parties to join if claims arise from the same transaction or occurrence and share a common question.
• Compulsory joinder requires certain parties to be joined if feasible to ensure complete relief and avoid inconsistent obligations.
• Rule 18 permits joining multiple claims against the same party, but each claim must have subject matter jurisdiction.
• Impleader (Rule 14) allows a defending party to bring in a third party who may be liable to the defending party for all or part of the plaintiff’s claim.
• Class actions (Rule 23) require numerosity, commonality, typicality, and adequacy, and only the named representatives’ citizenship and amount-in-controversy matter for diversity.
• Supplemental jurisdiction may allow joined claims or parties even if they do not independently meet jurisdictional requirements.

Key Terms and Concepts

• Permissive Joinder
• Compulsory Joinder
• Impleader (Third-Party Practice)
• Class Action