Also known as:adequate representation · adequately represent · adequately represents · adequately representing · adequate counsel
Written by attorneys · grounded in primary & secondary sources — see below
A condition in which existing parties or representatives in litigation protect the interests of absent or potential parties sufficiently to preclude intervention or to bind nonparties to the judgment. The condition turns on alignment of interests and vigorous prosecution without disabling conflicts.
Sources & Authorities· 8 primary sources
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Federal Rules
Uniform Acts
Model Codes
Casebooks
How it applies
Common Examples
6
Denied Intervention in Contract Dispute
Atlas Ventures sought to intervene in a breach-of-contract suit between Apex Dynamics and a supplier over exclusive supply rights. The district court denied the motion because Apex Dynamics already asserted the same contract interpretation and had every incentive to maximize recovery. Atlas Ventures could not show that its interests would be impaired.
Class Members Bound in Royalty Suit
Royalty owners across multiple states received notice of a class action against Phillips Petroleum for underpayment. The named plaintiffs shared identical interests and actively litigated the claims. The Supreme Court held that the absent owners were adequately represented and therefore bound by the judgment.
Phillips Petroleum Co. v. Shutts472 U.S. 797 (USSC 1985)
Intervention Denied in Admissions Case
Prospective law-school applicants moved to intervene in Grutter's challenge to affirmative-action admissions. The court found that the university defendants already defended the policy vigorously and shared the applicants' interest in preserving the program. The motion was denied because existing parties adequately represented the applicants' interests.
Grutter v. Bollinger188 F.3d 394 (6th Cir. 1999)
Settlement Class Certification Blocked
Plaintiffs sought certification of a settlement class in a securities fraud action. The court refused because the proposed representatives had already sold their shares and lacked incentive to maximize recovery for current holders. The class could not be certified without adequate representation.
Coopers & Lybrand v. Livesay437 U.S. 463, 468 (1978)
Parolee Class Action Mootness
A named plaintiff challenged parole-revocation procedures on behalf of a class of inmates. After his release the case was not moot because the class members remained adequately represented by counsel who continued to press the claims vigorously on their behalf.
United States Parole Commission v. Geraghty445 U.S. 388, 400 (1980)
Class Certification Denied for Conflicts
Female employees sought to represent a nationwide class alleging gender discrimination at Wal-Mart. The Supreme Court held that the proposed representatives could not adequately represent the class because store-level managers exercised discretion differently and some class members held managerial positions themselves.
Wal-Mart Stores, Inc. v. Dukes564 U.S. 338 (2011)
Common questions
Frequently Asked
5
What two requirements must a derivative plaintiff satisfy to have standing?+
The plaintiff must have been a shareholder at the time of the challenged act or acquired shares by operation of law from such a shareholder. The plaintiff must also fairly and adequately represent the corporation's interests in enforcing the corporate claim.
Supporting sources
When does a conflict of interest prevent adequate representation in a derivative suit?+
A conflict arises when the plaintiff's personal business interests diverge from the corporation's, such as when the plaintiff operates a competing firm that would benefit from unwinding the challenged transaction. Hostility from unrelated family or estate disputes can also create doubts about loyalty to the corporation as a whole.
Does purchasing shares after the alleged wrongdoing defeat standing?+
Yes. The contemporaneous-ownership rule requires ownership at the time of the act or omission or acquisition by operation of law from someone who held shares then. Post-transaction purchases are designed to prevent entrepreneurial litigation over past decisions.
Supporting sources
How does adequate representation affect intervention under Rule 24(a)(2)?+
If existing parties already assert the same interest and have every incentive to protect it vigorously, a potential intervenor cannot show that its ability to protect its interest will be impaired. The motion to intervene is therefore denied.
Supporting sources
What showing satisfies due process for binding absent class members?+
Absent class members are bound when the named plaintiffs share identical interests, face no conflicts, and prosecute the action vigorously. Notice and an opportunity to opt out further support the conclusion that representation was adequate.
Supporting sources
adequately represent
absent class members, and absent members must be afforded notice, an opportunity to be heard, and a right to opt out of the class. Phillips Petroleum Co. v. Shutts , 472 U. S. 797, 811–812…
. Under these circumstances, the Kansas court’s exercise of jurisdiction over the claims of the nonresident class members was proper. Pp. 808–814. 2. The Kansas court did not violate the…
does not eliminate additional requirement to provide notice). Subdivisions (a) and (b) focus court attention on whether a proposed class has sufficient unity so that absent members can…
Business Associations Corporations and LlcsShareholder and member litigation: direct, derivative, and class litigation · Shareholder and member litigation: direct, derivative, and class litigationUBEFoundational