Larson v. American Family Mutual Ins. Co.

2007

Venue: D. Colo.

Facts: Insurance company is refusing to pay a homeowner's claim, so the plaintiffs hire a lawyer. Stuff gets stalled, and they realize the lawyer is trying to get in business with the insurance company.

Posture: Fire the lawyer, sue the insurance company, then sue the lawyer when they find out about the relationship and potential breach of fiduciary duty.

Issue: Should the plaintiff be allowed to amend the complaint to join the lawyer as a defendant?

Holding: Yes, but that destroys diversity so it's over to state court.

Rule: 20(a): the claims arise out of the same series of transactions and occurrences.

Reasoning: The motion was timely, in the sense that the plaintiffs couldn't have known all they needed until discovery was underwa. And we have liberal joinder.

Dicta: