FEDERAL CIVIL PROCEDURE ONE

.PROBLEM #6

....................................................................Facts Patrick lives in Los Angeles (L.A.). Patrick buys a truck from Deftco. Deftco is an Arizona corporation that sells most of its trucks in California. Patrick decides to move to Phoenix, Arizona. While en route to Phoenix from L.A., the truck malfunctions and he has a single-vehicle accident in California near the Arizona border. Patrick later decides to remain in California. Original Complaint: Patrick files a products liability complaint against Deftco in an Arizona federal court. Patrick alleges a claim arising under the diversity jurisdiction of the court, and "that the interstate nature of Deftco's business operations violates the Interstate Commerce Act." Patrick immediately attaches Deftco's Arizona bank account. .....Assume that all appropriate defense motions were "timely" made. [What does this assumption mean?] Amended Complaint: Deftco subsequently answered the complaint. The applicable statute of limitations then expires on all possible claims arising out of the truck accident. .....After some discovery, Patrick amends his complaint to add a novel claim alleging punitive damages against Deftco. This new claim is based on the post-accident conduct of Deftco's insurance carrier (Insurco). Patrick claims that Insurco negligently failed to settle this case. Patrick thus alleges that Insurco's conduct is attributable to its insured (Deftco), such that Deftco is allegedly responsible for the negligence of the insurer (Insurco). [Note: Is this allegation bizzare--or what???] .....Deftco's insurance company (Insurco) requests the court's permission to join in this law suit as a party. Insurco thus claims that Patrick and Deftco are colluding to prosecute the alleged insuror negligence theory, described in the Amended Complaint, to fraudulently recover money from Insurco. The judge denies Insurco's request to participate in this lawsuit as a party.

.................................................................Instructions You are the lawyer for Deftco. What motions could you make/have reasonably made on Deftco's behalf? (There are no waiver issues in this problem.) Do not argue Patrick's position. Do not discuss transfer. Your task is to attack the plaintiff's Original and Amended Complaints, as well as to determine whether the court should have allowed Insurco to become a party to this action.

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