Summary
This Tenth Circuit case addresses the standard for intervention as of right under Fed. R. Civ. P. 24(a)(2), specifically the "adequate representation" requirement. Denying en banc rehearing, the majority adhered to the "minimal showing" standard from *Trbovich v. United Mine Workers*, holding that a movant need only show representation "may be" inadequate. The dissent argued the panel's interpretation effectively eliminated the inadequate-representation requirement, urging Supreme Court guidance. The case involves an insurance company seeking to intervene in a policyholder lawsuit against another insurer where the existing defendant had incentives to defend the intervenor's conduct.
Topics
Practice areas
Questions Presented
- Whether the district court erred in denying Jackson's motion to intervene as of right under Fed. R. Civ. P. 24(a)(2) on the ground that Jackson failed to show that its interest was inadequately represented by SLD.
Holdings
- The court denied the petition for panel rehearing and rehearing en banc.
- The dissent argues that the panel's interpretation was too broad and essentially eliminated the requirement; the concurrence argues that the panel correctly applied Supreme Court precedent.
Key quotations
“It may be time for the Supreme Court to provide guidance to the lower courts on the meaning of 'unless existing parties adequately represent that interest' in Fed. R. Civ. P. 24(a)(2).” (Dissent at 1)
“The majority opinion faithfully adheres to the Supreme Court’s longstanding interpretation of Rule 24(a)(2)’s adequate representation requirement and does not, as asserted by the dissent, 'essentially eliminate' the requirement.” (Concurrence at 1)
“SLD has every incentive in this lawsuit to vigorously defend the conduct of Jackson.” (Dissent at 2)
Factual background
The plaintiffs claimed that Security Life of Denver (SLD) breached universal life insurance policies by making improper deductions from cash values. Jackson National Life Insurance Company had taken over administration of some of those policies (the Jackson policies) but had not entered into contracts with the policyholders. Jackson moved to intervene in the lawsuit, arguing that its interests were not adequately represented by SLD. SLD supported the motion, but the plaintiffs opposed.
Procedural history
The plaintiff Robert Barnes sued Security Life of Denver (SLD) for breach of contract related to universal life insurance policies. Jackson National Life Insurance Company, which had taken over administration of some of the policies, moved to intervene. The district court denied intervention. A panel of the Tenth Circuit reversed, allowing intervention. The plaintiff petitioned for rehearing en banc.