Pulitzer-Polster v. Pulitzer - 784 F.2d 1305 (5th Cir. 1986)

Rule:

Fed. R. Civ. P. 19 seeks to bring into a lawsuit all those persons who ought to be there by requiring joinder. In circumstances where the litigation should not proceed without absent persons, the federal suit should be dismissed.

Facts:

Appellant beneficiary brought suit against appellee trustee for breach of fiduciary duty in his management of the trust. Appellant, along with other beneficiaries, had already brought an action in state court based upon appellee's management of the trust. Appellant did not join the other beneficiaries in federal court because their joinder would have destroyed diversity jurisdiction. The district court dismissed appellant's action for failure to join necessary parties. Appellant sought review. 

Issue:

Did the failure to join the necessary parties necessitate the dismissal of the appellant’s action? 

Answer:

Yes.

Conclusion:

The court affirmed the judgment, holding that the other beneficiaries were necessary parties to be joined if feasible. Even if the state action was purely a derivative suit while the federal suit was purely an individual action, there were very similar issues in the two suits. The beneficiaries could be harmed by the outcome of a federal suit. Appellant's interest in the federal forum was weak. Appellee had an interest in avoiding multiple litigation or inconsistent relief. The court held that there seemed little reason for the federal action except the fact that the state action was moving very slowly through the state courts. Dismissal was not an abuse of discretion.