Joinder Of Claims - Bar Exam Uniform

1. Which of the following statements is most accurate regarding the court's jurisdiction over this action? Select one.
   Answer: The court has jurisdiction because there is minimal diversity between the claimants and the amount exceeds $500. Statutory interpleader is a special federal procedure that allows a stakeholder holding disputed funds to force competing claimants to litigate their claims in a single action. The key jurisdictional requirements differ significantly from typical diversity cases. For statutory interpleader under 28 U.S.C. § 1335, you need only minimal diversity (at least two claimants must be citizens of different states) and an amount in controversy exceeding $500. Here, Claimant Corporation 1 (State B) and Claimant Corporation 2 (State C) are citizens of different states, satisfying minimal diversity. The $1 million amount far exceeds the $500 threshold. Therefore, the court has jurisdiction, making answer B correct. Let's examine why the other options fail: A is wrong because statutory interpleader doesn't require depositing funds with the court—that's a procedural option, not a jurisdictional requirement. C misunderstands the diversity analysis. While the stakeholder's citizenship is indeed irrelevant for determining diversity in statutory interpleader (unlike regular diversity jurisdiction), this doesn't defeat jurisdiction—it actually makes it easier to establish. D applies the wrong diversity standard. This describes complete diversity, which is required for regular federal diversity jurisdiction but not for statutory interpleader. Statutory interpleader only requires minimal diversity between claimants. Study tip: Remember that statutory interpleader has relaxed requirements compared to regular diversity cases: minimal (not complete) diversity, $500 (not $75,000) amount in controversy, and the stakeholder's citizenship doesn't matter. These lower barriers reflect Congress's policy of encouraging efficient resolution of competing claims.
2. Does the federal court have subject-matter jurisdiction over the plaintiff's proposed claim against the third-party defendant? Select one.
   Answer: No, because the plaintiff and the third-party defendant are not diverse, and supplemental jurisdiction is barred in this situation. The correct answer is C. The plaintiff's direct claim against the third-party defendant falls squarely within the exception to supplemental jurisdiction in 28 U.S.C. § 1367(b). That section prohibits supplemental jurisdiction in diversity-only cases over claims by plaintiffs against persons made parties under Rule 14 (impleader) if exercising such jurisdiction would be inconsistent with the requirements of diversity jurisdiction. Here, the plaintiff (Florida) and the third-party defendant (Florida) are not diverse. Allowing the claim would destroy complete diversity. Therefore, the court lacks subject-matter jurisdiction over this specific claim. A is incorrect because it overlooks the specific prohibition in § 1367(b). B is incorrect as it misstates the rules of subject-matter jurisdiction. D is incorrect because plaintiffs are permitted to assert such claims under FRCP 14(a)(3), but only if there is an independent basis for jurisdiction (which is lacking here).
3. Can the artist properly join both the federal copyright claim and the state-law contract claim in a single lawsuit in federal court? Select one.
   Answer: No, because while Rule 18 permits the claims to be joined in a single pleading, the court lacks subject-matter jurisdiction over the state-law claim. The correct answer is D. This question tests the interaction between FRCP 18 and subject-matter jurisdiction. Rule 18(a) allows a party to join as many claims as it has against an opposing party. However, Rule 18 is a joinder rule, not a jurisdictional rule. For each claim joined, there must be a basis for federal subject-matter jurisdiction. The copyright claim has federal question jurisdiction. The state-law contract claim, being completely unrelated, does not share a 'common nucleus of operative fact' with the federal claim, so supplemental jurisdiction under 28 U.S.C. § 1367 is unavailable. Furthermore, the claim does not meet the requirements for diversity jurisdiction because the parties are not diverse and the amount is less than $75,000. Therefore, the court lacks jurisdiction over the contract claim. A is incorrect because supplemental jurisdiction is not available for unrelated claims. B is incorrect because the facts state the parties are not diverse. C is incorrect because Rule 18 does not have a 'same transaction' requirement; its scope is unlimited. The problem is jurisdictional, not the joinder rule itself.
4. How should the court rule on the third party's motion to dismiss? Select one.
   Answer: Deny the motion, because the impleader claim is supported by supplemental jurisdiction, which is not defeated by the lack of diversity between the plaintiff and the third-party defendant. The correct answer is C. An impleader claim under FRCP 14 falls within the court's supplemental jurisdiction under 28 U.S.C. § 1367(a) because it arises from the same common nucleus of operative fact as the main claim. The limitations on supplemental jurisdiction in diversity cases, found in § 1367(b), apply to claims by plaintiffs against persons made parties under Rules 14, 19, 20, or 24, but they do not apply to claims asserted by a defendant, such as a Rule 14 impleader claim. Therefore, the lack of diversity between the plaintiff (NY) and the third-party defendant (NY) does not destroy jurisdiction over the third-party claim. A is incorrect because the citizenship of the plaintiff and third-party defendant is irrelevant for determining jurisdiction over the defendant's claim against the third-party defendant. B is incorrect because impleader claims do not need an independent jurisdictional basis; they are a classic example of a claim supported by supplemental jurisdiction. D is an overstatement and incorrect; complete diversity is still required for the main claim and certain other joined claims.
5. How should the court rule on the motion to dismiss? Select one.
   Answer: Deny the motion, because the third-party defendant was served within 100 miles of the courthouse. When you encounter questions about personal jurisdiction over third-party defendants in federal court, remember that special rules apply under the "100-mile bulge rule" found in Federal Rule of Civil Procedure 4(k)(1)(B). The court should deny the motion because the third-party defendant was served within 100 miles of the courthouse. This rule creates an exception to normal personal jurisdiction requirements specifically for third-party defendants under Rule 14. Since Newark, New Jersey is only 10 miles from the Manhattan federal courthouse, service falls within the 100-mile radius, giving the court personal jurisdiction regardless of the defendant's contacts with New York. Answer A is incorrect because while the third-party defendant may lack minimum contacts with New York, the 100-mile bulge rule bypasses the traditional minimum contacts analysis for Rule 14 defendants served within the geographic limit. Answer C is wrong because you don't need to rely on New York's long-arm statute when the federal 100-mile bulge rule applies. The bulge rule provides an independent basis for personal jurisdiction. Answer D overstates federal power—federal courts don't have blanket nationwide personal jurisdiction over third-party defendants. They're still bound by Rule 4's service requirements, but the 100-mile bulge rule expands their reach beyond state borders in specific circumstances. Remember this key distinction: while regular defendants must satisfy traditional personal jurisdiction requirements, third-party defendants under Rule 14 can be subject to jurisdiction through the 100-mile bulge rule, even if served outside the forum state. This rule frequently appears on bar exams testing federal civil procedure.
6. The driver has moved to dismiss the trucking company's lawsuit. What is the most likely outcome of the motion? Select one.
   Answer: The motion will be granted, because the trucking company's claim was a compulsory counterclaim under Federal Rule 13(a) and is now barred. The correct answer is C. Under Federal Rule of Civil Procedure 13(a), a counterclaim is compulsory if it arises out of the same transaction or occurrence as the opposing party's claim and does not require adding another party over whom the court cannot acquire jurisdiction. Here, the trucking company's claim for property damage arises from the exact same collision as the driver's personal injury claim. Therefore, it was a compulsory counterclaim. The failure to raise a compulsory counterclaim in the initial lawsuit bars a party from asserting that claim in a subsequent action. A is incorrect because Rule 18 governs the joinder of multiple claims by a party, but Rule 13(a) governs compulsory counterclaims, which must be brought. B is incorrect because a claim for property damage and a claim for personal injury arising from the same accident are considered to arise from the same transaction or occurrence. D is incorrect because the court would have had supplemental jurisdiction over the compulsory counterclaim, and even if filed separately, the claim meets the requirements for diversity jurisdiction (diverse parties and amount in controversy over $75,000). The reason for dismissal is not lack of jurisdiction, but the bar on subsequent assertion of a compulsory counterclaim.
7. Is the joinder of these two plaintiffs in a single action proper under the Federal Rules of Civil Procedure? Select one.
   Answer: No, because their claims do not arise out of the same transaction, occurrence, or series of transactions or occurrences. The correct answer is D. Under FRCP 20(a), persons may join as plaintiffs if they assert a right to relief arising out of the same transaction, occurrence, or series of transactions or occurrences, AND if any question of law or fact common to all plaintiffs will arise in the action. Here, while they were fired on the same day by the same defendant, the underlying events and legal theories are entirely different. An age discrimination claim for an executive and a breach of contract claim for an analyst are unlikely to be considered part of the same 'series of transactions or occurrences' because the proof and relevant facts will be completely separate. A is incorrect because being fired on the same day is not, by itself, sufficient to constitute the same transaction. C is an overstatement; they might share a common fact (e.g., who made the firing decision), but they fail the first prong of the Rule 20 test. B addresses subject-matter jurisdiction, not the propriety of the joinder under Rule 20, which is the threshold question. Even if SMJ could be established, the joinder itself is improper.
8. May the third-party defendant assert this claim against the plaintiff in the current action? Select one.
   Answer: Yes, the claim is permitted by the rules, and the court will have jurisdiction over it. This question tests your understanding of third-party practice and supplemental jurisdiction in federal court. When you encounter impleader scenarios, focus on both the procedural rules allowing claims and whether the court has jurisdiction over those claims. Under Federal Rule of Civil Procedure 14(a)(2), a third-party defendant may assert claims directly against the original plaintiff, provided those claims arise from the same transaction or occurrence that forms the basis of the plaintiff's original claim. Here, the third-party defendant's negligence claim against the plaintiff stems from the same incident underlying the original lawsuit, so the rule permits this claim. For jurisdiction, the court has supplemental jurisdiction under 28 U.S.C. § 1367(a) because the third-party defendant's claim shares a common nucleus of operative fact with the original diversity action. The statute allows federal courts to hear related state-law claims even when they don't independently satisfy federal jurisdiction requirements. Answer B incorrectly focuses on diversity between the defendant and third-party defendant. While they're both from State B, this doesn't defeat jurisdiction over the third-party defendant's claim against the plaintiff from State A, which falls under supplemental jurisdiction. Answer C is wrong because Rule 14(a)(2) specifically allows third-party defendants to assert claims against original plaintiffs, not just against the defendant who impleaded them. Answer D incorrectly suggests the claim must be compulsory - Rule 14(a)(2) permits but doesn't require such claims. Remember: In impleader questions, third-party defendants have broader claim options than you might initially think. They can sue both the original defendant and the original plaintiff, as long as the claims arise from the same occurrence.
9. Which of the following is the most accurate statement regarding the car driver's proposed claim against the bus driver? Select one.
   Answer: The claim is a proper crossclaim, and the court will have supplemental jurisdiction over it. The correct answer is A. The car driver and bus driver are co-parties. A claim by one co-party against another is a crossclaim under FRCP 13(g), provided it arises from the same transaction or occurrence as the original action. This claim, for injuries sustained in the same accident, meets that requirement. Crossclaims fall within the court's supplemental jurisdiction under 28 U.S.C. § 1367(a) because they are part of the same case or controversy. The fact that the co-defendants are not diverse from each other does not defeat supplemental jurisdiction. B is incorrect because supplemental jurisdiction allows for such claims between non-diverse co-parties. C is incorrect because a third-party claim (impleader) under Rule 14 is used to bring in a new party for derivative liability (e.g., indemnity or contribution), not to assert a claim against an existing co-party for one's own damages. D is incorrect because the claim is a crossclaim, not a counterclaim (which is asserted against an opposing party), and crossclaims are always permissive, never compulsory.
10. What is the strongest basis for the landowner to join the ongoing federal lawsuit? Select one.
    Answer: Permissive intervention under Rule 24(b), because his state-law claim shares a common question of fact with the main action. The correct answer is C. Permissive intervention under Rule 24(b) is the most likely successful route. The landowner's state-law claims for trespass and nuisance share a common question of fact with the environmental group's federal statutory claim: whether the company is discharging pollutants. The court has discretion to permit intervention. Importantly, permissive intervention does not require an independent basis for jurisdiction; the court can exercise supplemental jurisdiction over the landowner's state-law claims as they arise from the same common nucleus of operative fact. A is incorrect because intervention as of right is harder to establish. While the landowner has an interest, a court might find the environmental group, seeking to stop the same pollution, adequately represents his interest in that specific goal. B is incorrect because Rule 20 governs the joinder of parties at the commencement of an action, not joining an existing one. D is incorrect because the landowner is not a required party under Rule 19; the court can grant the relief sought by the environmental group (an injunction) without his presence.
11. Which statement best describes the insurance company's ability to bring an interpleader action in federal court? Select one.
    Answer: The company may bring a Rule 22 interpleader action because there is diversity between the stakeholder and the claimants and the amount exceeds $75,000. The correct answer is C. There are two types of interpleader in federal court: statutory interpleader (28 U.S.C. § 1335) and rule interpleader (FRCP 22). For Rule 22 interpleader, subject-matter jurisdiction must be established through either a federal question or complete diversity. Here, there is no federal question. For diversity, the stakeholder's citizenship is compared to the claimants'. The insurance company (Ohio) is diverse from both claimants (Michigan). Since the amount in controversy ($500,000) exceeds $75,000, the requirements for a Rule 22 interpleader action based on diversity are met. A and D are incorrect because for Rule 22 interpleader, diversity is tested between the stakeholder and the claimants, not among the claimants themselves. B is incorrect because statutory interpleader requires only 'minimal diversity' between any two claimants, which is lacking here as both claimants are from Michigan. The diversity between the stakeholder and claimants is what allows Rule 22 interpleader, not statutory interpleader.
12. Assuming the court has proper jurisdiction over the original claim, may the defendant corporation properly assert its defamation counterclaim in the pending federal action? Select one.
    Answer: No, because the claim is a permissive counterclaim that lacks its own independent basis for federal subject-matter jurisdiction. The correct answer is D. The original suit is in federal court under alienage jurisdiction, a form of diversity jurisdiction (28 U.S.C. § 1332(a)(2)). The defendant's proposed counterclaim is unrelated to the main claim, making it a permissive counterclaim under FRCP 13(b). A permissive counterclaim requires an independent basis for federal subject-matter jurisdiction. Here, the counterclaim is a state-law tort claim for $50,000. It does not raise a federal question, and it does not satisfy the amount-in-controversy requirement for diversity/alienage jurisdiction (over $75,000). Because it is unrelated to the main claim, it cannot receive supplemental jurisdiction under 28 U.S.C. § 1367. A is incorrect because supplemental jurisdiction generally does not extend to permissive counterclaims that do not share a common nucleus of operative fact with the main claim. B is incorrect; permissive counterclaims must independently satisfy the jurisdictional amount. C is incorrect as there is no general prohibition on counterclaims against foreign nationals.
13. What is the strongest argument for the federal court to deny the plaintiff's motion to remand the case to state court? Select one.
    Answer: The corporation can show that the plaintiff has no possibility of success on the claim against the doctor, meaning the doctor's citizenship can be ignored for diversity purposes. When you encounter removal questions involving diversity jurisdiction, focus on the complete diversity requirement and the fraudulent joinder doctrine. Federal courts have diversity jurisdiction only when parties are citizens of different states and no plaintiff shares citizenship with any defendant. Here, the Florida plaintiff sued both a Georgia corporation and a Florida doctor, which destroys complete diversity since both plaintiff and doctor are Florida citizens. However, the corporation can argue fraudulent joinder - that the doctor was added solely to defeat removal, not because of a legitimate claim. Answer A correctly identifies the strongest argument: if the corporation can demonstrate the plaintiff has no reasonable possibility of success against the doctor, the court will disregard the doctor's citizenship for diversity purposes. Under the fraudulent joinder doctrine, courts look beyond pleadings to determine whether a claim has any factual or legal basis. If it doesn't, the non-diverse defendant is ignored. Answer B misapplies supplemental jurisdiction, which doesn't cure diversity problems - you need an independent basis for federal jurisdiction first. Answer C incorrectly focuses on Rule 20 joinder requirements, but even if joinder were improper, that wouldn't establish federal jurisdiction or prevent remand. Answer D invents a non-existent "primary defendant" rule based on damages amounts, which isn't how diversity jurisdiction works. Study tip: Remember that fraudulent joinder requires showing the plaintiff cannot possibly succeed against the non-diverse defendant - it's a high standard, but when met, it preserves federal jurisdiction despite apparent diversity problems.
14. The pharmaceutical company moves to dismiss the entire action for lack of subject-matter jurisdiction. How will the court likely rule? Select one.
    Answer: Grant the motion, because Rule 20 joinder cannot cure the lack of complete diversity in a diversity-based case. The correct answer is D. This question tests the limits of joinder and supplemental jurisdiction in diversity cases. The plaintiff joined the non-diverse hospital under FRCP 20. For a federal court to have diversity jurisdiction under 28 U.S.C. § 1332, there must be complete diversity between all plaintiffs and all defendants. Here, the Oregon plaintiff and the Oregon hospital are not diverse. The doctrine of supplemental jurisdiction under 28 U.S.C. § 1367 cannot be used to overcome this defect. Specifically, § 1367(b) prohibits the exercise of supplemental jurisdiction over claims by plaintiffs against parties joined under Rule 20 when doing so would destroy complete diversity. Therefore, the court lacks subject-matter jurisdiction. C is also correct in its outcome, but D provides the more precise reasoning by linking the failure of jurisdiction to the joinder rule used. A is incorrect because § 1367(b) explicitly forbids what it suggests. B is incorrect as the facts state this is a state-law claim; there is no indication of a federal question.
15. How should the court rule on the trustee's motion to dismiss? Select one.
    Answer: Grant the motion, because the sister is a party whose absence prevents the court from according complete relief and whose joinder is not feasible. The correct answer is C. This problem requires a two-step analysis under FRCP 19. First, under Rule 19(a), the sister is a required ('necessary') party because she claims an interest relating to the subject of the action (the painting), and proceeding without her could impair her ability to protect that interest. Second, because her joinder is not feasible (it would destroy diversity), the court must determine under Rule 19(b) whether she is 'indispensable.' Given that the dispute is over ownership of a unique piece of property between two claimants, a judgment in the sister's absence would be highly prejudicial to her. The court cannot grant complete relief as the trustee would face a substantial risk of incurring double or inconsistent obligations. Thus, the sister is an indispensable party, and the action must be dismissed. A is incorrect because the risk of inconsistent judgments and impairment of her interest is exactly what Rule 19 aims to prevent. B is incorrect because the trustee, who has a duty to both beneficiaries, cannot adequately represent the sister's specific claim to the painting against the brother. D discusses a possible alternative action but does not correctly analyze the Rule 19 motion before the court.
16. What is the proper procedural device for the corporation to use to assert its indemnification claim against the CEO? Select one.
    Answer: A crossclaim under Rule 13(g). The correct answer is C. The corporation and the CEO are co-parties (co-defendants) in the lawsuit. A claim asserted by one party against a co-party is a crossclaim under FRCP 13(g). The rule allows a party to state a crossclaim against a co-party if the claim arises out of the transaction or occurrence that is the subject matter of the original action, which an indemnification claim related to the main fraud claim does. A is incorrect because a third-party complaint (impleader) under Rule 14 is used to bring a new, non-party into the action; the CEO is already a party. B is incorrect because a counterclaim is asserted against an opposing party (i.e., the plaintiff), not a co-party. D is incorrect because while amending the answer might be the physical document used, the substantive legal authority for the claim itself is the rule on crossclaims, which is the most precise answer.
17. What is the most appropriate procedural mechanism for this individual to use to participate in the action? Select one.
    Answer: File a motion to intervene as of right under Rule 24. The correct answer is B. A class member has an interest in the subject matter of the action. If she believes that the named representatives and class counsel are not adequately representing her specific interest (e.g., by failing to pursue a viable legal theory), she may move to intervene as of right under FRCP 24(a). The rule allows intervention when the applicant claims an interest relating to the action, the disposition may impair that interest, and the existing parties do not adequately represent that interest. All these elements appear to be met here. A is incorrect because Rule 20 is for joining parties at the outset of a case, not for entering an existing one. C is inefficient and consolidation is discretionary, whereas intervention provides a direct path into the existing case. D is nonsensical; Rule 14 (impleader) is for bringing in parties who may be liable for the claims against a defendant, not for a plaintiff-side class member to sue her own counsel.
18. Assuming both counterclaims can be asserted under the Federal Rules, does the federal court have subject-matter jurisdiction over them? Select one.
    Answer: The court has jurisdiction over the contract counterclaim but not the personal injury counterclaim. The correct answer is B. The contract claim is a compulsory counterclaim under Rule 13(a) because it arises out of the same transaction or occurrence as the plaintiff's claim. As such, it falls within the court's supplemental jurisdiction under 28 U.S.C. § 1367. The personal injury claim is a permissive counterclaim under Rule 13(b) because it is unrelated to the main claim. A permissive counterclaim requires an independent basis for subject-matter jurisdiction. Here, the claim is based on state law, so it would need diversity jurisdiction. Although the parties are diverse, the facts do not state the amount in controversy for this claim. However, even if it did exceed $75,000, the key distinction is that its jurisdiction must be independent. Since it lacks a basis on its face and cannot use supplemental jurisdiction, the court lacks jurisdiction over it. A is incorrect because supplemental jurisdiction does not cover unrelated, permissive counterclaims. C is incorrect for reversing the jurisdictional analysis. D is incorrect because supplemental jurisdiction explicitly allows federal courts to hear related state-law claims.
19. May the defendant assert her time-barred claim as a counterclaim? Select one.
    Answer: Yes, but only to the extent that it reduces or defeats the plaintiff's recovery; no affirmative relief can be granted. This question tests your understanding of time-barred counterclaims under Federal Rule of Civil Procedure 13(c), which addresses when defendants can assert claims whose statute of limitations has expired. When a defendant has a claim arising from the same transaction or occurrence as the plaintiff's suit, but the limitations period has run, Rule 13(c) provides a limited remedy. The rule allows assertion of the time-barred claim, but only for recoupment purposes—meaning it can reduce or offset the plaintiff's potential recovery, not provide affirmative relief to the defendant. This reflects the policy that defendants shouldn't be penalized for not filing protective counterclaims when facing imminent litigation. Answer A correctly states this limitation: the defendant may assert her contract claim to reduce or defeat the plaintiff's recovery, but cannot obtain affirmative damages beyond that offset. Answer B is wrong because a plaintiff's filing doesn't "revive" expired claims—statutes of limitations don't work that way. Answer C goes too far in the opposite direction, incorrectly suggesting that expired claims are completely barred even for recoupment purposes. Answer D misunderstands compulsory counterclaim rules; while this counterclaim arising from the same contract would indeed be compulsory, that designation doesn't exempt it from limitations periods—it just means the defendant must assert it or lose it forever. Remember this distinction on civil procedure questions: time-barred counterclaims can serve as a "shield" (reducing plaintiff's recovery) but not a "sword" (obtaining affirmative relief). This reflects the compromise between protecting defendants from surprise lawsuits while still respecting limitations periods.
20. What is the proper procedural step for the general contractor to take to include the subcontractor in the lawsuit? Select one.
    Answer: File a third-party complaint against the subcontractor under Rule 14. The correct answer is C. This is a classic scenario for impleader under FRCP 14. A defending party (the general contractor) may bring in a non-party (the subcontractor) who is or may be liable to the defending party for all or part of the plaintiff's claim against it. The general contractor's claim for indemnification is precisely this type of derivative liability. A is incorrect because a party like the subcontractor, who may be liable for indemnity, is typically not considered a required party under Rule 19; the court can grant complete relief between the existing parties without the subcontractor's presence. B is incorrect because a crossclaim is filed against an existing co-party, and the subcontractor is not yet a party to the action. D is incorrect because a defendant cannot simply name an alternative defendant in its answer; joinder must be accomplished through the proper procedural device like Rule 14.

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