Lead Opinion
Bardomiano and Rosa Aguilar appeal the dismissal of their medical malpractice action. The district judge based the dismissal on the Aguilars’ failure to join an indispensable party, their son Jaime, whose join-der would defeat diversity jurisdiction. We affirm.
FACTS AND PROCEDURAL HISTORY
On August 2, 1983, appellants Rosa and Bardomiano Aguilar filed a medical mal
On August 3, 1983, Jaime Aguilar, through his guardian ad litem, Rosa Aguilar, filed an action in the Los Angeles Superior Court to recover post-majority special damages and general damages for injuries caused by the County’s alleged negligence.
The County moved to dismiss the federal action pursuant to Fed.R.Civ.P. 12(b)(6), failure to state a claim upon which relief can be granted, and Fed.R.Civ.P. 12(b)(7), failure to join a party under Fed.R.Civ.P. 19. On October 24, 1983, the district court granted the motion to dismiss the complaint and action under Fed.R.Civ.P. 12(b)(7) for failure to join Jaime Aguilar, an indispensable party whose joinder would defeat diversity jurisdiction. Adopting the reasoning in Lopez v. Martin Luther King, Jr. Hospital,
DISCUSSION
Fed.R.Civ.P. 19 establishes a two-step analysis for determining who should be joined in a given action. The first step,
This case turns on a Fed.R.Civ.P. 19(a)(2) determination whether Jaime has an interest in the subject of this action that could be impaired — and, if so, whether the action should have been dismissed under Fed.R. Civ.P. 19(b).
I.
Jaime Aguilar’s Interest and Its Impairment; Fed.R.Civ.P. 19(a)(2)
The district court concluded that Jaime Aguilar had an interest in his parents’ action that could be impaired under the California law of collateral estoppel. While Fed.R.Civ.P. 19 cases are generally reviewed under an abuse of discretion standard, Bakia v. County of Los Angeles,
The doctrine of collateral estoppel, as interpreted in California law, bars parties, or those in privity with them, from relitigating any issue actually litigated, determined, and necessary to the disposition of a former proceeding. In re Russell,
Fed.R.Civ.P. 19(a)(2) states that a person should be joined if disposition of the action in his absence may as a practical matter impair or impede his ability to protect that interest. Although Jaime seeks to recover different damages (post-majority) from that of his parents (pre-majority), his right to recovery, like his parents’, depends on a determination of the County’s negligence. If his parents’ suit is allowed to proceed, and the County is found non-negligent, Jaime may be collaterally es-topped from relitigating the issue of the County’s negligence. Since a California court may find Jaime collaterally estopped from pursuing his own suit in state court, the district court here properly found him to have an interest in his parents’ action that could be impaired if that action goes forward without him as a party.
The Aguilars contend that the district court erred. They maintain that the collateral estoppel doctrine is inapplicable here because Jaime is not in privity with them. Privity, they argue, “involves a person so identified in interest with another that he represents the same legal right.” Zarago-sa v. Craven,
As support for their position, the Agui-lars rely on Cortez v. County of Los Ange-les,
We affirm the district court’s choice of the reasoning in Lopez v. Martin Luther King, Jr. Hospital,
The Aguilars also rely on Kaiser Foundation Hospital v. Superior Court,
Kaiser, however, reflects outdated notions of privity under the California law of collateral estoppel. The concept of privity “has been expanded ... to a relationship between the party to be estopped and the unsuccessful party in the prior litigation which is ‘sufficiently close’ so as to justify the application of the doctrine of collateral estoppel.” Lopez,
The Aguilars assert that Armstrong involved only retroactive rights and not the prospective rights involved here, and that Ruddock v. Ohls,
We conclude that Jaime should have been joined in his parents’ action because under Fed.R.Civ.P. 19(a)(2), he has an interest relating to the subject of the action and is so situated that the disposition of the action in his absence may impair or impede his ability to protect that interest.
II.
The Equity and Good Conscience Test Under Rule 19(b)
Since the district court properly determined that Jaime, having an interest in the subject of his parents’ action that could be impaired under California collateral estop-pel law, should therefore be joined, if feasible, it was appropriate for the court to turn to Rule 19(b). Since Jaime could not be joined without destroying diversity jurisdiction, the district court dismissed the action rather than allow it to proceed without joinder.
The district court’s dismissal for failure to join an indispensable party under Fed.R.Civ.P. 19 is reviewed under an abuse of discretion standard. Walsh v. Centeio,
The district court had adequate grounds to find that each of the factors in Rule 19(b), which represent an attempt to balance the rights of all those affected by the litigation, mandated dismissal in this case. The Aguilars have an adequate alternative forum, state court, in which they can obtain relief. By having to defend two separate lawsuits turning on the same issues, the County would be subjected to multiple litigation and possibly inconsistent obligations. There is potential prejudice to Jaime, since he could be collaterally es-topped from pursuing his state action if his parents’ suit is allowed to proceed and is unsuccessful. In light of these facts, the district court did not abuse its discretion in dismissing the action.
CONCLUSION
The district court correctly dismissed the action for non-joinder under Fed.R.Civ.P. 19.
AFFIRMED.
Notes
. California Code of Civil Procedure § 376 provides, in relevant part, as follows: “The parents of a legitimate unmarried minor child, acting jointly, may maintain an action for injury to such child caused by the wrongful act or neglect of another.”
. Fed.R.Civ.P. 19 provides, in relevant part, as follows:
Rule 19. Joinder of Persons Needed for Just Adjudication
(a) Persons to be Joined if Feasible. A person who is subject to service of process and whose joinder will not deprive the court of jurisdiction over the subject matter of the action shall be joined as a party in the action if (1) in his absence complete relief cannot be accorded among those already parties, or (2) he claims an interest relating to the subject of the action and is so situated that the disposition of the action in his absence may (i) as a practical matter impair or impede his ability to protect that interest or (ii) leave any of the persons already parties subject to a substantial risk of incurring double, multiple, or otherwise inconsistent obligations by reason of his claimed interest. If he has not been so joined, the court shall order that he be made a party. If he should join as a plaintiff but refuses to do so, he may be made a defendant, or, in a proper case, an involuntary plaintiff. If the joined party objects to venue and his joinder would render the venue of the action improper, he shall be dismissed from the action.
(b) Determination by Court Whenever Join-der not Feasible. If a person as described in subdivision (a)(1) — (2) hereof cannot be made a party, the court shall determine whether in equity and good conscience the action should proceed among the parties before it, or should be dismissed, the absent person being thus regarded as indispensable. The factors to be considered by the court include: first, to what extent a judgment rendered in the person’s absence might be prejudicial to him or those already parties; second, the extent to which, by protective provisions in the judgment, by the shaping of relief, or other measures, the prejudice can be lessened or avoided; third, whether a judgment rendered in the person’s absence will be adequate; fourth, whether the plaintiff will have an adequate remedy if the action is dismissed for nonjoinder.
Dissenting Opinion
dissenting:
The majority reasons that because Jaime may be collaterally estopped, this is sufficient to uphold the district court’s finding Jaime has an interest in his parents' action which could be impaired if that action goes forward without him as a party. I dissent.
I believe the majority, in adopting the reasoning in Lopez v. Martin Luther King, Jr. Hospital,
The majority in this case employed this exact reasoning, finding that this “interest” determination is properly construed “ ‘from a practical perspective, not through the adoption of strict legal definitions and technicalities.’ ” (Opinion at p. 182, citing Lopez v. Martin Luther King, Jr. Hospital,
While the question of joinder is one of federal procedure, in diversity cases the
To be sure, Jaime has an obvious financial stake in the outcome of his parents’ action, but this cannot support the legally protected “interest” required to invoke Rule 19(a). See 3A Moore’s Federal Practice II 19.07 — 1[2], at 19-129 (2d ed. 1982). “It is a misapplication of Rule 19(a) to add parties who are neither necessary nor indispensable, who are not essential for just adjudication and who have a separate cause of action entirely.” Bakia v. County of Los Angeles,
Even assuming Jaime has the required interest in his parents’ action, Rule 19(a) is satisfied only if the disposition of the action in his absence would either (i) as a practical matter impair or impede his ability to protect that interest, or (ii) leave any of the persons already parties subject to a substantial risk of incurring double, multiple or otherwise inconsistent obligations by reason of his claimed interest.
This court concludes that “[sjince a California court may find Jaime collaterally estopped from pursuing his own suit in state court, the district court here properly found him to have an interest in his parents’ action that could be impaired if that action goes forward without him as a party.” To the contrary, I agree with both the holding and reasoning of Judge Cynthia Holcomb Hall’s decision in Cortez v. County of Los Angeles,
Here, the application of Rule 19 requires inquiry into the effect on Jaime of any relief granted to his parents, and whether “as a practical matter” such may “impair or impede his ability to protect his interest.”
The language “as a practical matter” has a restrictive as well as an expansive side. Thus, the fact that the absent person may be bound by the judgment does not of itself require his joinder if his interests are fully represented by parties present, and the mere theoretical possibility of prejudice does not require join-der.
3A Moore’s Federal Practice, ¶ 19.07-1[2-1], at 19-133 (2d ed. 1982) (footnotes omitted). As pointed out by Judge Hall, these parents, like those in Cortez, have every incentive to reach a result that will benefit their child’s legal interest as well as their own. This is not a case where one party may do something to affect wrongfully the rights of a nonparty. All inferences point to the fact that these parents will vigorously do all they can to protect their child and make every argument Jaime would or could make if he were a party. Indeed, Rosa Aguilar is the appointed guardian ad litem in Jaime’s state court action, charged with the responsibility to litigate that case in Jaime’s best interests. To presume Jaime’s interest will be prejudiced if this action is allowed to proceed without him as a party flies in the face of common sense and recognized familial bonds.
In applying Rule 19 “courts must refrain from taking a view either too broad or too narrow in determining ‘prejudicial’ effect of a judgment. The watchwords of Rule 19 are ‘pragmatism’ and ‘practicality.’ ” Schutten v. Shell Oil Co.,
The second prong of the Rule 19(a) inquiry would require Jaime’s joinder if his absence would leave any of the parties subject to a substantial risk of incurring double, multiple or otherwise inconsistent obligations. Following the reasoning of Judge Hall in Cortez and as set forth above, there is no risk of double or multiple liability to defendants in this case because Jaime’s parents claim damages under their independent cause of action established by section 376 of the California Code of Civil Procedure. Thus, I conclude Jaime is not a person who should be joined in this action and, therefore, an analysis of whether the equities of the case require dismissal pursuant to Rule 19(b) is unnecessary.
I would adopt the decision of Judge Hall in Cortez v. County of Los Angeles,