Liberal Interventions—Not What You Think

2.5.10    By Dan Lins    Tags ,

Motions to intervene arise relatively infrequently in business litigation cases.  But when they do, they can dramatically change a lawsuit’s course.  In a January 8, 2010, case before the Middle District of Tennessee, Beach v. Healthways, Inc., Magistrate Judge Griffin provides a concise roadmap to navigating motions to intervene.

Beach is a class-action lawsuit involving a motion to intervene as of right under Federal Rule of Civil Procedure 24(a).  To intervene as of right, you must show: (1) that the motion to intervene was timely; (2) that the movant has a substantial interest in the subject matter of the case; (3) that the movant’s ability to protect that substantial legal interest may be impaired in the absence of intervention; and (4) that the parties already before the Court may not adequately represent the proposed intervenor’s interest.  Each of these factors has additional elements, which are too numerous to list here, but which the Court succinctly discusses in its opinion.

In an interesting discussion, the Court held that the motion filed by the proposed intervenor, Central Laborer’s Pension Fund (”CLPF”), was timely, even though it was filed five months after the deadline.  It was not until the initial class certification was denied, because the proposed class representative was found not adequate, that CLPF sought to intervene.  Although CLPF had been aware of the case since its filing, the Court found that CLPF’s motion was timely because it acted promptly in filing its motion to intervene just 15 days after certification was denied.

Throughout its discussion the Court reiterates the standard for these motions in the Sixth Circuit, which is that requests for intervention should be construed liberally in favor of granting intervention.  Although many of the calls the Court makes in this opinion are close ones, this favorable standard saves the day for the intervenor.


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