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Barber v. America's Wholesale Lender

Citations: 289 F.R.D. 364; 2013 U.S. Dist. LEXIS 57381; 2013 WL 935780Docket: No. 8.12-CV-01124-T-27TBM

Court: District Court, M.D. Florida; February 24, 2013; Federal District Court

Narrative Opinion Summary

The case involves multiple plaintiffs asserting claims against numerous lenders, particularly concerning allegations related to mortgage-backed securities and purported misrepresentations about lender interests. The plaintiffs argued for permissive joinder under Rule 20 of the Federal Rules of Civil Procedure, citing transactional relatedness and common legal or factual questions. However, the court found that the claims did not arise from the same transaction or occurrence, and thus did not meet the criteria for permissive joinder. Despite potential common legal issues, each claim involved individualized circumstances and would necessitate separate trials. The court further justified severance under Rule 21, emphasizing concerns about fairness, potential prejudice to defendants, and case management complexities. Consequently, the court severed and dismissed the claims against all defendants except America’s Wholesale Lender, allowing those claims by Sean and Kristina Barber to continue. The motions to dismiss and strike from several banks were rendered moot, and certain motions for sanctions were denied. The court's decision underscores the importance of distinct factual circumstances and the necessity for concerted action evidence in joinder claims.

Legal Issues Addressed

Concerted Action Requirement

Application: Joinder was deemed inappropriate without evidence of concerted action among defendants, as mere similar behavior was insufficient.

Reasoning: Joinder is inappropriate without evidence of concerted action among Defendants; merely engaging in similar behavior is insufficient.

Judicial Economy and Fairness

Application: The court emphasized that the potential for prejudice to defendants and significant case management issues necessitated severance, as joinder did not enhance judicial efficiency.

Reasoning: The court finds no substantial benefits to judicial economy through joinder and determines that the potential for prejudice to defendants, along with significant case management issues, supports severance.

Misjoinder of Parties

Application: The claims were individualized and involved different defendants and factual scenarios, justifying the court’s decision to sever and dismiss them without prejudice.

Reasoning: They assert that the claims are related due to the banks' collective mortgage securitization practices; however, the claims are individualized, involving different defendants, loan documents, dates, and factual scenarios.

Permissive Joinder under Rule 20

Application: The court determined that the plaintiffs did not meet the permissive joinder criteria under Rule 20 of the Federal Rules of Civil Procedure since their claims did not arise from the same transaction or occurrence.

Reasoning: However, the court found that the claims did not arise from the same transaction or occurrence as required by Rule 20(a).

Severance of Claims under Rule 21

Application: Even if the plaintiffs had met the joinder criteria, the court indicated that severance would still be warranted under Rule 21 due to concerns about fairness, prejudice, expedience, and costs.

Reasoning: Even if the Plaintiffs had met the joinder criteria, the court indicated that severance would still be warranted under Rule 21 due to concerns about fairness, prejudice, expedience, and costs.