19 Day 19 19 Day 19
19.1 Rules 19.1 Rules
Read the following Federal Rules of Civil Procedure. You can access them via the internet or the supplemental handout provided on Canvas.
- Fed. R. Civ. P. 13(a-c, g-i)
- Fed. R. Civ. P. 14(a-b)
- Fed. R. Civ. P. 18
- Fed. R. Civ. P. 20(a)
- Fed. R. Civ. P. 42
- Fed. R. Civ. P. 24
19.2 Slides on Complex Litigation 19.2 Slides on Complex Litigation
Please review the slides linked here (Powerpoint file) on complex and multiparty litigation.
19.3 United States ex rel. D’Agostino Excavators, Inc. v. Heyward-Robinson Co. 19.3 United States ex rel. D’Agostino Excavators, Inc. v. Heyward-Robinson Co.
This case concerns whether an allegedly related set of events constitutes a single "transaction or occurrence" for purposes of Fed. R. Civ. P. 13.
This case was decided before the enactment of Section 1367 (which, if you recall, codified the doctrine of what we now call supplemental jurisdiction). Under Fifth Circuit precedent at this time, a compulsory counterclaim did not have to have an independent basis of subject matter jurisdiction, but a permissive counterclaim did have to have such an independent basis. Thus, the question of whether the disputes over the two construction sites at issue in this case constituted a single transaction or occurrence determined whether there was subject matter jurisdiction over the defendant's counterclaim.
As an aside: the counterclaim is a relatively new instrument, as it did not exist at common law, though it has predecessors in equity. These remedies, called set-off and recoupment, were limited, though, as a defendant could not assert a claim to affirmative relief. This limitation was rescinded in England under the Judicature Act of 1873, and American states gradually began to follow suit.
UNITED STATES of America, for the Use and Benefit of D'AGOSTINO EXCAVATORS, INC., Plaintiff-Appellee,
v.
The HEYWARD-ROBINSON COMPANY, Inc. and Maryland Casualty Company, Defendants-Appellants.
United States Court of Appeals, Second Circuit.
[1078] [1079] Francis X. Conway, New York City, for defendants-appellants.
Irwin M. Echtman, New York City, for plaintiff-appellee.
Before FRIENDLY and KAUFMAN, Circuit Judges, and BRYAN,[1] District Judge.
FREDERICK van PELT BRYAN, District Judge.
This is an appeal from a judgment for the plaintiff entered in the United States District Court for the District of Connecticut upon a jury verdict after trial before Chief Judge J. Edward Lumbard, of the Court of Appeals of this Circuit, sitting by designation.
The action involves two subcontracts for excavation work between D'Agostino Excavators, Inc. (D'Agostino) and The Heyward-Robinson Company, Inc. (Heyward) as prime contractor on two construction jobs in Connecticut. One of the prime contracts, for the construction of barracks at the Naval Submarine Base in New London, Groton, was with the federal government (the Navy job). The other, a non-federal job, was for the construction of a plant for Stelma, Inc. at Stamford (the Stelma job).
D'Agostino brought this action against Heyward and its surety, Maryland Casualty Company (Maryland) under the Miller Act, 40 U.S.C. §§ 270a and 270b, to recover payments alleged to be due on the Navy job. Heyward answered, denying liability on the Navy job and counterclaiming for alleged overpayments and extra costs of completing both the Navy job and the Stelma job. In reply, D'Agostino denied liability on the Heyward counterclaims and interposed a reply counterclaim to recover from Heyward monies alleged to be due on the Stelma job.
At the trial, the two subcontracts in suit were treated together. D'Agostino claimed that Heyward had breached both subcontracts by failing to make progress payments as required and that substantial sums were owing to it from Heyward on both jobs. Heyward claimed that D'Agostino had breached both subcontracts by permitting its compensation and employee liability insurance to lapse; that, as a result, Heyward on October 19, 1965 had terminated both; and that D'Agostino was liable for overpayments and costs of completion on both.
The issue as to whether Heyward had breached the subcontracts prior to October 19, 1965, when Heyward claimed to have terminated them, was submitted to the jury as a special question. The jury found that Heyward had breached the subcontracts prior to that date.
After amendment of the complaint by D'Agostino to allege a claim in quantum meruit for the work performed on both jobs, special questions then were [1080] submitted to the jury as to the reasonable value of the work performed by D'Agostino on each project and the net amount owed by Heyward to D'Agostino on both. The jury found, in answer to these questions, that the net amount owed by Heyward to D'Agostino on both jobs was $63,988.36. Judgment against Heyward was rendered accordingly. Under a formula agreed to by the parties, it was determined that the amount due to D'Agostino on the Navy job was $40,771.46 and judgment was entered against Maryland in that sum.
The trial court denied motions for judgment notwithstanding the verdict and for a new trial pursuant to Rules 50(b) and 59, Fed.R.Civ.P. Heyward and Maryland appeal from the judgment against them, raising a variety of questions which will be dealt with seriatim.
I.
Appellants' initial contention is that the District Court had no jurisdiction over the counterclaims on the Stelma job. They therefore contend that the Stelma claims must be dismissed and that since D'Agostino's claims on the Navy and Stelma jobs were presented to the jury as inseparable, the judgment below must be reversed.
Appellants urge that the Stelma counterclaims are not compulsory counterclaims over which the federal court acquired jurisdiction ancillary to the jurisdiction which it had over D'Agostino's Miller Act claim stated in the complaint. They say that these are permissive counterclaims over which the court had no ancillary jurisdiction and which lacked the required independent basis of federal jurisdiction.
This jurisdictional issue is raised for the first time in this Court. In the Court below appellants affirmatively urged that the Stelma counterclaims were compulsory. Nevertheless, it is well settled that lack of federal jurisdiction may be raised for the first time on appeal, even by a party who originally asserted that jurisdiction existed or by the Court sua sponte. E. g., American Fire & Casualty Co. v. Finn, 341 U.S. 6, 17-18, 71 S.Ct. 534, 95 L.Ed. 702 (1951); Mansfield, Coldwater & Lake Michigan Ry. Co. v. Swan, 111 U.S. 379, 384, 4 S.Ct. 510, 28 L.Ed. 462 (1884); Precise Imports Corp. v. Kelly, 378 F.2d 1014, 1015-1016 (2d Cir.), cert. denied, 389 U.S. 973, 88 S.Ct. 472, 19 L.Ed.2d 465 (1967); John Birch Society v. National Broadcasting Co., 377 F.2d 194, 199 (2d Cir. 1967); Shahmoon Industries Inc. v. Imperato, 338 F.2d 449 (3rd Cir. 1964). We turn, then, to the jurisdictional issue.
It is apparent from the record that there is no independent basis of federal jurisdiction over the Stelma counterclaims. Both D'Agostino and Heyward are New York corporations with offices in New York. There is thus no diversity jurisdiction. Clearly there is no jurisdiction under the Miller Act over these counterclaims since the Stelma contract did not involve public work for the federal government.
The question is whether the Stelma counterclaims are compulsory or are permissive. Under the rule in this circuit, if they are permissive there is no Federal jurisdiction over them unless they rest on independent jurisdictional grounds. O'Connell v. Erie Lackawanna R. R. Co., 391 F.2d 156, 163 (2d Cir. 1968), vacated and ordered dismissed as moot, 395 U.S. 210, 89 S.Ct. 1767, 23 L.Ed.2d 213 (1969); Lesnik v. Public Industrials Corporation, 144 F.2d 968, 976 n. 10 (2d Cir. 1944); Fraser v. Astra Steamship Corp., 18 F.R.D. 240, 241-242 (S.D.N.Y.1955); Telegraph Delivery Service v. Florists Tel. Service, 12 F.R.D. 342 (S.D.N.Y.1952); 3 J. Moore, Federal Practice ¶ 13.19 [1] at 53-57 (2d ed. 1969). But see Revere Copper and Brass, Inc. v. Aetna Casualty and Surety Company, 426 F.2d 709 (5th Cir. May 8, 1970); G. Fraser, Ancillary Jurisdiction and the Joinder of Claims in the Federal Courts, 33 F.R.D. 27, 28-34 (1963); Green, Federal Jurisdiction over Counterclaims, 48 N.W.U.L.Rev. [1081] 271, 282-285 (1953).[2] On the other hand, if they are compulsory counterclaims, they are ancillary to the claim asserted in the complaint and no independent basis of Federal jurisdiction is required. E. g., United Artists Corp. v. Masterpiece Productions, Inc., 221 F.2d 213 (2d Cir. 1955). See, e. g., Moore v. New York Cotton Exchange, 270 U.S. 593, 46 S.Ct. 367, 70 L.Ed. 750 (1926); C. Wright, Law of Federal Courts, §§ 9, 79 (2d ed. 1970); 3 J. Moore, supra, ¶ 13.15 at 31-42.
Under Rule 13(a) Fed.R.Civ.P. a counterclaim is compulsory "if it arises out of the transaction or occurrence that is the subject matter of the opposing party's claim." In United Artists Corp. v. Masterpiece Productions, supra, Chief Judge Clark said:
In practice this criterion has been broadly interpreted to require not an absolute identity of factual backgrounds for the two claims, but only a logical relationship between them. Lesnik v. Public Industrials Corp., 2 Cir., 144 F.2d 968, 975, citing and quoting, inter alia, Moore v. New York Cotton Exchange, 270 U.S. 593, 610, 46 S.Ct. 367, 371, 70 L.Ed. 750, thus: "`Transaction' is a word of flexible meaning. It may comprehend a series of many occurrences, depending not so much upon the immediateness of their connection as upon their logical relationship." See also Blair v. Cleveland Twist Drill Co., 7 Cir., 197 F.2d 842, 845; Wright, Estoppel by Rule: The Compulsory Counterclaim Under Modern Pleading, 38 Minn.L.Rev. 423, 440-445, 39 Iowa L.Rev. 255; 3 Moore's Federal Practice ¶ 13.13 (2d ed. 1948 and 1954 Supp.).
221 F.2d at 216. See United States for Use and Benefit of Pickard Engineering Co. v. Southern Construction Company, 293 F.2d 493, 500 (6th Cir. 1961), rev'd in part on other grounds, sub nom. Southern Construction Co. v. Pickard, 371 U.S. 57, 83 S.Ct. 108, 9 L.Ed.2d 31 (1962); United States v. Eastport Steamship Corporation, 255 F.2d 795 (2d Cir. 1958); C. Wright, supra, at 346-349.
Thus "* * * courts should give the phrase `transaction or occurrence that is the subject matter' of the suit a broad realistic interpretation in the interest of avoiding a multiplicity of suits." 3 J. Moore, supra, ¶ 13.13 at 33-36 (2d ed. 1969). As the Supreme Court said in Pickard:
The requirement that counterclaims arising out of the same transaction or occurrence as the opposing party's claim "shall" be stated in the pleadings was designed to prevent multiplicity of actions and to achieve resolution in a single lawsuit of all disputes arising out of common matters. 371 U.S. at 60, 83 S.Ct. at 110.
In the case at bar the counterclaims were compulsory within the meaning of Rule 13(a). There was such a close and logical relationship between the claims on the Navy and Stelma jobs that the Stelma counterclaims arose out of the same "transaction or occurrence" as those terms are now broadly defined. Both subcontracts were entered into by the same parties for the same type of work and carried on during substantially the same period. Heyward had the right to terminate both subcontracts in the event of a breach by D'Agostino of either. Heyward also had the right to withhold monies due on one to apply [1082] against any damages suffered on the other. Progress payments made by Heyward were not allocated as between jobs and were made on a lump sum basis for both as though for a single account.
A single insurance policy covered both jobs. The letters of Heyward to D'Agostino of October 8 and 19, 1965 threatening termination and terminating both jobs, allegedly because of the cancellation by D'Agostino of this joint insurance coverage and failure to properly man both projects, treated both jobs together. These letters formed the basis of one of Heyward's major claims at the trial.
The controversy between the parties which gave rise to this litigation was with respect to both jobs and arose from occurrences affecting both. Indeed, it would seem to have been impossible for Heyward to have fully litigated the claims against it on the Navy job without including the Stelma job, because the payments it made to D'Agostino could not be allocated between the two jobs.
As the appellants themselves point out in their brief, the "Stelma and Navy claims were so interwoven at the trial that they are now absolutely incapable of separation." The proof as to payments and alleged defaults in payments was made without any differentiation between the two claims and neither of the parties was able to offer any evidence of apportionment. Finally, the evidence as to the breaches of contract claimed by the respective parties related in the main to both contracts rather than to one or the other.
The jurisdictional question so belatedly raised by the appellants must be viewed in light of the record as a whole. So viewed, it is plain that the Stelma counterclaims bare a logical and immediate relationship to the claims on the Navy job. Thus they arose out of the "transaction or occurrence which is the subject matter" of the suit instituted by D'Agostino on the Navy job and are compulsory counterclaims under Rule 13 (a). The Stelma counterclaims were thus ancillary to the claims asserted in the complaint over which the Federal Court had acquired jurisdiction under the Miller Act, and there is jurisdiction over them. E. g., Southern Construction Co., Inc. v. Pickard, supra; Moore v. New York Cotton Exchange, supra; United Artists Corp. v. Masterpiece Productions, Inc., supra; Lesnik v. Public Industrials Corp., supra; United States for Use and Benefit of Foster Wheeler Corp. v. American Surety Co. of New York, 142 F.2d 726 (2d Cir. 1944); United States for Use and Benefit of Central Rigging and Contracting Corp. v. Paul Tishman Co., 32 F.R.D. 223 (E.D.N.Y.1963). To require that the closely related Navy and Stelma claims must be litigated separately would result in fragmentation of litigation and multiplicity of suits contrary to one of the major purposes of Rule 13(a). See, e. g., Southern Construction Co. v. Pickard, supra; Moore v. New York Cotton Exchange, supra; United States v. Eastport Steamship Corp., supra; United Artists Corp. v. Masterpiece Productions, Inc., supra; Lesnik v. Public Industrials Corp., supra.
II.
Appellants next contend that the trial court committed reversible error in excluding a memorandum offered by Heyward as an admission by D'Agostino that the amounts due from Heyward were less than the amounts D'Agostino was claiming at trial.
At trial Heyward claimed that the proffered memorandum, in the handwriting of D'Agostino's engineer, Paolella, was made during a meeting between Paolella and Goodman, Heyward's vice president, on December 16, 1965 and was initialed by both. The meeting was held after D'Agostino was off both jobs. Heyward contended that the memorandum contained figures supplied by D'Agostino representing the actual dollar amounts of work D'Agostino had performed on each of the two jobs.
D'Agostino objected to the offer on the grounds (1) that the memorandum was made as part of settlement negotiations [1083] and (2) that there was no showing that Paolella had authority to bind D'Agostino. Heyward then sought to lay a foundation for its admission by testimony of Goodman as to the nature and circumstances under which the meeting of December 16 was held and the memorandum made, to show that it was not the product of settlement negotiations and that Paolella had authority to act for D'Agostino. The trial court, however, declined to permit such testimony and excluded the memorandum, stating, "I am inclined to think it was a settlement discussion."
In a letter from Heyward to its surety, Maryland, of January 19, 1966, which was in evidence, there were some indications that Heyward considered the memorandum to have been made in the course of settlement negotiations. However, the letter by no means established this. The proffered testimony of Goodman might well have indicated that the memorandum was not made in connection with settlement discussions at all but was a statement by an authorized representative of D'Agostino as to the amount it then considered to be due on the two jobs. It was only after hearing Goodman's testimony that the trial court could determine whether the memorandum was admissible or not. Thus it appears that the trial court should have heard the testimony of Goodman before passing on the admissibility of the memorandum.
Nevertheless, we do not find that this error was so "prejudicially erroneous as to require that the cause be remanded for a new trial." Severi v. Seneca Coal and Iron Corporation, 381 F.2d 482, 489, n. 7 (2d Cir. 1967). On appeal, errors during the course of the trial "which do not affect the substantial rights of the parties" are to be disregarded, 28 U.S.C. § 2111, Rule 61, Fed. R.Civ.P. See Severi v. Seneca Coal and Iron Corporation, supra; Shaw v. Scoville, 369 F.2d 909, 911-912 (2d Cir. 1966); Draddy v. Weston Trawling Co., 344 F.2d 945 (2d Cir. 1965); Barber v. Commissioner, 152 F.2d 930 (2d Cir. 1946).
In a trial of this length and complexity, the exclusion of the memorandum without hearing Goodman's testimony did not affect the substantial rights of the appellants nor was it unduly harmful or prejudicial to them. See, e. g., Vitarelle v. Long Island R. R. Co., 415 F.2d 302 (2d Cir. 1969); Shaw v. Scoville, supra; Draddy v. Weston Trawling Co., supra. There was ample evidence in the record to support the verdict of the jury on the first question of breach of the subcontracts by Heyward prior to October 19, 1965. Had Goodman's testimony on this subject been received, there doubtless would have been countervailing testimony from the other side. Against this background, the disputed memorandum would have been only a minor and peripheral piece of additional evidence which the jury might have weighed and considered or rejected along with the mass of other evidence in the record on the question of breach of the subcontracts. The memorandum would have had little or no bearing on the quantum meruit question. Its admission under these circumstances would have been highly unlikely to have changed the result. Such error as there was here was harmless error within the purview of 28 U.S.C. § 2111 and Rule 61, Fed.R.Civ.P. and is not ground for reversal.
III.
Appellants next contend that the charge to the jury was erroneous in seven respects. Appellants have failed to preserve their right to review five of these seven claimed errors and are therefore precluded from raising them on appeal.
Rule 51, Fed.R.Civ.P. provides in pertinent part:
* * * No party may assign as error the giving or the failure to give an instruction unless he objects thereto before the jury retires to consider its verdict, stating distinctly the matter [1084] to which he objects and the grounds for his objection. * * *
The purpose of this provision "is to prevent reversals and consequent new trials because of errors the judge might well have corrected if the point had been brought to his attention." Steinhauser v. Hertz Corporation, 421 F.2d 1169, 1173 (2d Cir. 1970). See also, Pauling v. News Syndicate Company, Inc., 335 F.2d 659, 668-671 (2d Cir. 1967), cert. denied, 379 U.S. 968, 85 S.Ct. 662, 13 L.Ed.2d 561 (1965); LiMandri v. Brasileiro, 316 F.2d 3 (2d Cir. 1963); Alexander v. Kramer Bros. Freight Lines, Inc., 273 F.2d 373, 375 (2d Cir. 1959); Troupe v. Chicago D & G Bay Transit Co., 234 F.2d 253, 258-260 (2d Cir. 1956); Sweeney v. United Feature Syndicate, 129 F.2d 904, 905-906 (2d Cir. 1942).
The charge of the trial court was in two parts. It charged first on the special question posed to the jury as to whether the subcontracts had been breached by Heyward prior to October 19, 1965. All of the claimed errors are in this portion of the charge. At the conclusion of its charge on this special question, and before the jury retired, the trial court expressly gave counsel an opportunity to "call the Court's attention to any omissions or errors in the charge."
In response, counsel for the appellants raised only two objections. The first related to Heyward's right to audit D'Agostino's bills as bearing on the time within which payments from Heyward were due. This had not been the subject of a request to charge; nevertheless, the Court modified the language of the charge on this subject in response to appellants' request and so advised the jury.
The second concerned appellants' request to charge that Heyward did not have to pay D'Agostino until D'Agostino informed Heyward about its outstanding obligations to suppliers. This request had been the subject of extensive colloquy with the Court prior to the charge and the Court had then rejected the request. Counsel for the appellants merely reaffirmed the exception previously taken to the Court's ruling.[3]
The Court had not rejected any other of the appellants' requests to charge but charged on the subjects covered by these requests in its own language. Yet the appellants did not even refer to the Court's failure to charge as requested on these five subjects, which they now claim to have been error, though expressly invited by the Court to do so.[4]
The case at bar is unlike such cases in this circuit as Sweeney v. United Features Syndicate Inc., 129 F.2d 904 (2d Cir. 1942); Wright v. Farm Journal, Inc., 158 F.2d 976 (2d Cir. 1947) and Keen v. Overseas Tankship Corporation, 194 F.2d 515, 519, cert. denied, 343 U.S. 966, 72 S.Ct. 1061, 96 L.Ed. 1363 (1952) "where the judge, having focussed on the point, charged the opposite of what had been requested, so that objection would have been a useless formality." Pauling v. News Syndicate Co., supra, 335 F.2d at 66. Nor is it like Steinhauser v. Hertz Corporation, supra, where counsel had made his position abundantly clear and the trial court had made it plain that further efforts on his part to except or object would be unavailing and had warned him not to take exceptions. 421 F.2d at 1173.
This case is similar to Pauling v. News Syndicate Co., supra, and Alexander v. Kramer Bros. Freight Lines, Inc., supra, where the trial court's attention was not adequately called to the [1085] errors and omissions urged on appeal and such contentions were held not to have been preserved for review. See LiMandri v. Brasileiro, supra; Keen v. Overseas Tankship Corp., supra, 194 F.2d at 518; 5 J. Moore, Federal Practice ¶ 51.04 (2d ed. 1969). See also, Rosenfeld v. Curtis Publishing Co., 163 F.2d 660 (2d Cir. 1947).
It should be noted that the charge of the Court on the five subjects on which appellants failed to object or except was not, as appellants contend, the opposite of what they requested. True, the trial court did not adopt the language of the appellants' requests. But "[a] judge is not bound to adopt the categorical language which counsel choose to put into his mouth." Ayers v. Watson, 137 U.S. 584, 601, 11 S.Ct. 201, 207, 34 L.Ed. 803 (1891), quoted with approval in Alexander v. Kramer Bros. Freight Lines, Inc., 273 F.2d at 375. Moreover, the trial court was not "required to incorporate every proposition of law suggested in counsel's requests provided he covers the specific principles necessary for the jury's guidance." Puggioni v. Luckenbach S. S. Co., Inc., 286 F.2d 340, 344 (2d Cir. 1961). See Halecki v. United N. Y. & N. J. Sandy Hook Pilots Assoc., 282 F.2d 137, 140 (2d Cir. 1960), cert. denied, 364 U.S. 941, 81 S.Ct. 461, 5 L.Ed.2d 372 (1961).
The trial court charged in its own language on each of these five subjects of: burden of proof of default; D'Agostino's waiver of breach prior to October 19, 1965; D'Agostino's rescission of the subcontracts; Heyward's termination of the subcontracts; and the treatment of both subcontracts together. The charge on each of these subjects was fair, adequate and proper and in accordance with applicable law.
IV.
As to the two assignments of error in the charge which appellants preserved for review, we find that no error was committed.
As has been indicated, the first of these related to Heyward's right to audit D'Agostino's bills as bearing on the time within which payments from Heyward were due. The Court charged that payments from Heyward were due "within a short time" after D'Agostino's bills were rendered. At the conclusion of the charge, appellants' counsel objected and requested a supplemental charge to the effect that Heyward was entitled to an opportunity to audit the bills before it was required to make payment. The court granted the appellants' request only to the extent of giving a supplemental instruction to the jury that "within a short time" meant "within a reasonable time." The Court pointed out to appellants that they had not "requested any charge on that subject * * * [a]nd to charge it now * * * would give it [the subject] undue emphasis."
The supplemental charge given was quite adequate under the circumstances and the trial court was well within its discretion in refusing to go further at that point in the trial.
The second claimed error preserved for review concerns the Court's refusal to charge, as requested by appellants, that Heyward was not required to make progress payments to D'Agostino until D'Agostino informed Heyward about its outstanding obligations to its suppliers. Appellants' position, in substance, was that Heyward could use D'Agostino's failure to pay its suppliers as an excuse for nonpayment even if at the time payment was due it had no knowledge that D'Agostino had failed to make such payments. On the appellants' theory, if this were so, Heyward could have justified any failure on its part to make progress payments when due if it later discovered that D'Agostino was then indebted to its suppliers, even though this was not the reason for Heyward's failure to make the progress payments when required.
The trial court quite properly rejected this contention. As to Heyward's claim that it was entitled to withhold $30,000 of progress payments due to D'Agostino to protect itself from possible liability to D'Agostino's suppliers, the [1086] Court charged that this amount could have been deducted from what was otherwise due to D'Agostino:
* * * if and only if you find three things: first, that Heyward-Robinson knew of the amounts due to D'Agostino's suppliers; secondly, that Heyward-Robinson reasonably notified D'Agostino or that D'Agostino knew of Heyward-Robinson's intent to withhold payment of this amount; and, thirdly, that Heyward-Robinson actually withheld payments of this amount for the purpose of protecting itself from liability from the Plaintiff's suppliers and not for some other reason.
It further charged that Heyward "has the burden of proof with respect to these three matters."
The charge on this subject was a substantially correct statement of the circumstances under which Heyward had the right to withhold progress payments to protect itself against liability to D'Agostino's suppliers under the terms of the subcontracts in suit.
V.
Appellants make the contention that Heyward should have been credited as a matter of law with the full face amount of four promissory notes totaling $36,250 which Heyward had given to D'Agostino and which D'Agostino had negotiated to third parties at a discount. These notes had been reacquired by Heyward, the maker, for the sum of $18,500, after Heyward had dishonored them and litigation had been instituted by the endorsees.
The trial court left it to the jury to determine as a question of fact the amount which should be credited to Heyward on these notes. The jury was charged that the full face amount of the notes should be credited to Heyward as payment only if the parties intended the notes as payment at the time they were received. Otherwise, it was to give Heyward credit only for such amounts as D'Agostino had actually received on account of the notes.
It may be noted, in the first place, that this is another instance in which no objection was made by appellants to the charge on the subject. Moreover, the appellants neglected to call to the attention of the trial court the provisions of the Uniform Commercial Code on which they now rely.
In any event, however, the charge on this subject was substantially correct.
Under the common law of Connecticut, the mere giving of a note does not constitute payment unless it is agreed that the note should be received as payment. Under the law prior to the Uniform Commercial Code the burden was apparently on the defendant maker to establish that the parties intended the note to be payment. Davidson v. Bridgeport, 8 Conn. 472 (1831). In fact, acceptance of a note was presumed to be merely conditional payment. Brabazon v. Seymour, 42 Conn. 551, 554 (1875).
U.C.C. ¶ 3-802, Conn.Gen.Stat. Ann. § 42a-3-802 (1958) does not appear to have changed the rule on the presumed intention of the parties except where a bank is the drawer, maker or acceptor. The questions of whether the parties intended the notes to be payment, whether payment was conditional and whether the original obligation was discharged by the payments made to the transferees by Heyward and to what extent, was for the jury. The jury was entitled to find on this record that the parties did not intend the notes as payment or to be taken in satisfaction of the underlying obligations, that therefore the underlying obligations were not discharged by the satisfaction and surrender of the instruments and that Heyward was entitled to credit only for the amount it paid to the transferees and not to credit for face value. This, in substance, is what was charged.
VI.
Appellants' remaining contentions require little discussion.
The argument that it was an abuse of discretion for the trial court to permit amendment of the complaint "late [1087] in the trial" so as to allege a claim in quantum meruit is devoid of merit. The appellants have failed to show any prejudice as a result of the amendment. Moreover, the trial court, in discussing the motion to amend early in the trial, specifically indicated it would entertain an application by Heyward for additional time to produce evidence on the amended claim, if that became necessary. Heyward made no such application.
The contention that it was error to deny Heyward's request to poll the jury upon its verdict on the first question submitted to it is equally meritless. Heyward did not request that the jury be polled on its verdict on the first question when that verdict was returned. Instead, the request was made only after the jury had returned a verdict on the second question. If Heyward had wanted the jury polled on the first question it should have asked for such a poll when the jury returned its verdict on that question and not have delayed until after the jury had reached a verdict on the second question. The trial court so indicated when it denied Heyward's application because it was too late.
Finally, appellants' claim that they were prejudiced by the recesses granted during the course of the trial and that a new trial is therefore required in the interests of justice has no substance whatsoever.
While the record in this complex and difficult case is somewhat confusing, substantial justice was done here. There was ample evidence that Heyward was badly behind in its progress payments on the two subcontracts. The verdicts that (1) Heyward breached the subcontracts prior to October 19, 1965 and (2) that Heyward was liable in quantum meruit for the work performed by D'Agostino in the amount found by the jury were fully justified by the evidence.
The judgment below is affirmed.
FRIENDLY, Circuit Judge (concurring).
I cannot agree that, as maintained in Part I of the majority opinion, the counterclaim relating to the Stelma job was compulsory under F.R.Civ.P. 13(a). Of course, it is tempting to stretch a point when a jurisdictional objection is so belatedly raised by the very party who clamored for the exercise of jurisdiction until the decision went against it. But we must consider the question as if Heyward had not pleaded the Stelma counterclaim and proceeded to sue D'Agostino in some other court for failure to perform that subcontract, and D'Agostino then claimed that Heyward's failure to bring the Stelma transaction into this Miller Act suit barred the later action. Despite the desirability of requiring that all claims which in fact arise "out of the transaction or occurrence that is the subject matter of the opposing party's claim" be litigated in a single action, courts must be wary of extending these words in a way that could cause unexpectedly harsh results.
Even on a liberal notion of "logical relation," see C. Wright, Federal Courts, § 79 at 346-47 (2d ed. 1970), I am unable to perceive how Heyward's claim for breach of the Stelma subcontract arose "out of the transaction or occurrence" to wit, the Navy subcontract, that was the subject matter of D'Agostino's Miller Act claim. Whatever historical interest there may be in the circumstances that the two subcontracts were entered into between the same parties for the same type of work and were carried on during substantially the same period, these facts seem to me to be lacking in legal significance. So likewise do D'Agostino's having furnished a single insurance policy to cover both jobs and Heyward's having cancelled the subcontracts in one letter rather than two. The boiler-plate in each subcontract, whereby "if one or more other contracts, now or hereafter, exist between the parties," a breach of any such contract by D'Agostino might, at Heyward's option, be considered a breach of the contract at issue and Heyward might terminate any or all contracts so breached and withhold moneys due on any contract and apply these to damages on any other, might meet the [1088] test if Heyward had availed itself of these rights, but it did not.
All that is left is that, as the trial proceeded, it turned out that some of Heyward's payments were not earmarked as between the two subcontracts. However, the determination whether a counterclaim is compulsory must be made at the pleading stage. The complaint was specific on how much Heyward owed on the Navy subcontract, and the counterclaims were equally so on how much D'Agostino owed for failure to complete this and how much it owed for failure to complete the Stelma subcontract. To say that the failure to earmark some payments made it impossible to try the claims separately ignores the law on application of payments. If Heyward did not specify the application of its payments, as it could, and D'Agostino had not made an application of them, as it could in default of specification by Heyward, the court would do this. Williston, Contracts, §§ 1795, 1796, 1800 (rev. ed. 1938).
Against all this appellee relied heavily on Southern Construction Co. v. Pickard, 371 U.S. 57, 83 S.Ct. 108, 9 L.Ed.2d 31 (1962). Since the counterclaim there at issue was held not compulsory, the decision can scarcely be authority that a claim like Heyward's on the Stelma subcontract was. I think it not only is not such authority but points just the other way. The Court there held that where a subcontractor on two federal projects was obliged to bring Miller Act suits in different districts because of venue requirements, the contractor was not obliged to counterclaim for an unallocated payment in the first suit. I do not see how the Court could have reached a different result if the subcontractor had one Miller Act subcontract and another in which he could sue only in a state or a different federal district court.
Nevertheless I think the court below had jurisdiction of the Stelma counterclaim. I would now reject the conventional learning, which I followed too readily in O'Connell v. Erie Lackawanna R. R., 391 F.2d 156, 163 (1968), that the permissive counterclaim "needs independent jurisdictional grounds to support it, with one exception," to wit, set-off, 3 Moore, Federal Practice ¶ 13.19 at 53-54 (2d ed. 1968). The Supreme Court left this question open in Moore v. New York Cotton Exchange, 270 U.S. 593, 609, 46 S.Ct. 367, 70 L.Ed. 750 (1926). I read Judge Clark's fine opinion for this court in Lesnick v. Public Industrial Corp., 144 F.2d 968, 976 n. 10 (2 Cir. 1944), as also doing this, although we cited it in O'Connell as upholding the conventional view, as do Professor Wright, Federal Courts 351 n. 56 (2d ed. 1970) and the majority here.
The reasons why the conventional view is wrong are set out in detail in an article by Professor Thomas F. Green, Jr., Federal Jurisdiction over Counterclaims, 48 N.W.U.L.Rev. 271 (1953), and nothing would be gained by repetition. I mention only two points. One is that for reasons there developed, id. at 277-81, Professor Moore's sound recognition — perhaps more accurately creation — of the exception that set-off requires no independent jurisdictional basis, see 3 Moore, Federal Practice, ¶ 13.19 at 54-55 n. 3; Marks v. Spitz, 4 F.R.D. 348 (D.Mass. 1945); Fraser v. Astra S. S. Corp., 18 F.R.D. 240 (S.D.N.Y.1955), carries the seeds of destruction of the supposed general rule. The other is that at least since United Mine Workers v. Gibbs, 383 U.S. 715, 86 S.Ct. 1130, 16 L.Ed.2d 218 (1966), it is no longer thought the heavens will fall if a federal court deals with a non-federal claim when it is convenient to do so. The only argument I see against Professor Green's position is the possibility of snowballing through a plaintiff's permissive counterclaim in reply to the defendant's permissive counterclaim etc. Id. at 289-90. But that is more theoretical than real. In a diversity case the plaintiff in all probability would already have pleaded this in his complaint; while the problem could arise in a federal question action, for example, if D'Agostino had a claim against Heyward on still another subcontract, such cases are extremely rare.
[1089] If the decision were mine, I would therefore ask that the court sit in banc and overrule the holding in O'Connell, supra, 391 F.2d at 163, that a permissive counterclaim requires independent jurisdictional grounds. Since my brothers find themselves able to affirm without doing this, I join in the result and leave the issue for another day. On all other points I concur in Judge Bryan's thorough opinion.
[1] Of the Southern District of New York, sitting by designation.
[2] Apparently there is one limited exception to the rule that permissive counterclaims require an independent basis of Federal jurisdiction. Where the permissive counterclaim is in the nature of a set-off interposed merely to defeat or reduce the opposing party's claim and does not seek affirmative relief, no independent jurisdictional grounds are required. Fraser v. Astra Steamship Corp., supra; Marks v. Spitz, 4 F.R.D. 348 (D.Mass.1945) (dictum); C. Wright, Law of Federal Courts § 79 at 351 (2d ed. 1970). See In re Monongahela Rye Liquors, Inc., 141 F.2d 864, 869-870 (3rd Cir. 1944); G. Fraser, supra, at pp. 31-34; 3 J. Moore, supra, ¶ 13.19 [1].
[3] The two claimed errors to which objection was taken are discussed, infra, at pp. 3998-4000.
[4] It should also be noted that the Court informed counsel prior to the charge that "I always give counsel an opportunity to take exception outside of the presence of the Jury." Moreover, at the conclusion of the second portion of the charge concerning the amount of recovery, the Court again asked counsel if they wished to "confer with the Court on any of these matters." Counsel for the appellants replied that he did not.
19.4 Notes following Heyward-Robinson 19.4 Notes following Heyward-Robinson
- Is Rule 13(a)’s requirement that a party assert a counterclaim overly harsh? Is there another standard that could be used?
- A key inquiry under Rule 13(a) is what qualifies as a “transaction or occurrence.” A classic test is outlined in Judge Friendly’s concurring opinion in Moore v. New York Cotton Exchange, 296 F. 61 (1925), aff'd, 270 U.S. 593 (1926). Friendly refers to the event in question as “an important part of the transaction constituting the subject-matter of the counterclaim.” He continues: “It is the one circumstance without which neither party would have found it necessary to speak relief. Essential facts alleged by appellant enter into and constitute in part the cause of action set forth in the counterclaim.” Under this test, the counterclaim need not be “precisely identical” to the original claim, and it can introduce new facts and allegations. Is this similar to the test under Gibbs for asserting supplemental jurisdiction?
- Four related but different tests appear to have risen out of judicial decisions for determining whether a claim arises out of the same “transaction or occurrence” for Rule 13(a)’s purposes:
- Are the issues of fact and law raised by the claim and counterclaim substantially similar?
- Would claim preclusion bar a subsequent suit on the defendant’s counterclaim in the absence of Rule 13(a)’s compulsory counterclaim rule? (This "test" is either pointless or circular because, as we will learn next week, those jurisdictions who would have applied claim preclusion to extinguish counterclaims in the absence of a Rule 13 analog would have done so only if the counterclaim arose from the same transaction or occurrence as the original claim.)
- Will the same evidence be used to refute or support both the claim and counterclaim?
- Is there a logical relation between the claim and counterclaim?
- Prior to 28 U.S.C. § 1367, in some jurisdictions, a compulsory counterclaim fell under ancillary jurisdiction and, thus, did not require subject matter jurisdiction independent of the initial claim. In some jurisdictions, a permissive counterclaim, however, did require independent subject matter jurisdiction. Were the compulsory counterclaim rule and § 1367 created for similar reasons? After § 1367’s enactment, some circuits have held that supplemental jurisdiction grants subject matter jurisdiction over any counterclaim, either permissive or compulsory. Some, in rulings I find puzzling, have held that a party may not invoke 1367 to support subject matter jurisdiction over counterclaims. We will assume for the purposes of this class that the latter line of cases are wrong, so that you may apply section 1367 to compulsory or permissive counterclaims (recalling that, as we discussed very briefly in Class 3, the phrase "case or controversy" in section 1367 is likely broader than "transaction or occurrence").
19.5 Note on Consequences of Failure to Assert a Counterclaim 19.5 Note on Consequences of Failure to Assert a Counterclaim
What happens when a defendant fails to assert a compulsory counterclaim? Everyone agrees that it cannot be raised in a subsequent case, though the source of this rule is up for debate. What do you think the source might be – preclusion? Waiver? Estoppel? Rule 13 itself?
What should happen if a defendant fails to respond in any way (defaults) in a case in which it has a compulsory counterclaim? Should your conclusion change based on the various doctrinal requirements of notice and opportunity to be heard?
Could a defendant who has failed to assert a compulsory counterclaim assert it later in state court?
19.6 Smuck v. Hobson 19.6 Smuck v. Hobson
FRCP 24 governs intervention, which allows a third party to insert itself into a lawsuit. Originally seen in courts of admiralty, intervenors can join a lawsuit (under certain conditions) to assert their own interest in the proceedings. Though courts typically were wary of intervenors, who could, in many cases, have brought their own lawsuit, the growing complexity of litigation, along with an increasing number of cases mixing private and public interests, led to the adoption of Rule 24 and the broadening of the scope of intervention. See generally, David L. Shapiro, Some Thoughts on Intervention Before Courts, Agencies, and Arbitrators, 81 Harv. L. Rev. 721 (1968).
Carl C. SMUCK, a Member of the Board of Education of the District of Columbia, Appellant, v. Julius W. HOBSON et al., Appellees. Carl F. HANSEN, Superintendent of Schools of the District of Columbia, Appellant, v. Julius W. HOBSON et al., Appellees.
Nos. 21167, 21168.
United States Court of Appeals District of Columbia Circuit.
Argued June 26, 1968.
Decided Jan. 21, 1969.
Danaher, Burger, and Tamm, Circuit Judges, dissented; McGowan, Circuit Judge, dissented in part.
*176Messrs. John L. Laskey and Edmund D. Campbell, Washington, D. C., with whom Messrs. F. Joseph Donohue and Thomas S. Jackson, Washington, D. C., were on the brief, for appellants.
Messrs. William M. Kunstler, New York City, and Richard J. Hopkins, with whom Mr. James O. Porter, Washington, D. G., was on the brief, for appellees. Mr. Jerry D. Anker, Washington, D. C., also entered an appearance for appellees.
Mr. E. Riley Casey, Washington, D. C., filed a brief on behalf of the National School Boards Association, as amicus curiae, urging reversal.
Mr. William B. Beebe, Washington, D. C., filed a brief on behalf of the American Association of School Administrators, as amicus curiae, urging reversal.
Messrs. Howard C. Westwood and Albert H. Kramer, Washington, D. C., filed a brief on behalf of the National Education Association, as amicus curiae, urging affirmance.
Messrs. J. Francis Pohlhaus and Frank D. Reeves, Washington, D. C., filed a brief on behalf of the National Association for the Advancement of Colored People, as amicus curiae, urging affirmance.
Before Bazelon, Chief Judge, and Danaher, Burger, McGowan, Tamm, Leventhal and Robinson, Circuit Judges, sitting en banc.
These appeals challenge the findings of the trial court that the Board of Education has in a variety of ways violated the Constitution in administering the District of Columbia schools.1 Among the facts that distinguish this case from the normal grist of appellate courts is the absence of the Board of Education as an appellant. Instead, the would-be appellants are Dr. Carl F. Hansen, the resigned superintendent of District schools, who appeals in his former official capacity and as an individual; Carl C. Smuck, a member of the Board of^. Education, who appeals in that capacity; and the parents of certain school children who have attempted to intervene in order to register on appeal their “dissent” from the order below.
*177The school board’s decision not to appeal inevitably adds a quality of artificiality to any proceedings in this Court. But the importance of the constitutional issues as stake requires an examination of whether these appellants should, despite the absence of the protagonist at trial, be given their day in a higher court. Moreover, our reluctance to review an order unchallenged by the principal defendant below is in some measure tempered by the fact that the present appointed school board has been superseded by a new Board of Education elected last fall.2 The most fundamental considerations demand that this new board should have the fullest discretion permitted by the Constitution to reshape educational policy within the District. This Court cannot ignore the importance of assuring that the new school board should not be strait jacketed by. an order not rooted in constitutional requirements. We conclude that the parents were prop-/ erly allowed to intervene of right in order to appeal those provisions of the decree which curtail the freedom of the school board to exercise its discretion in deciding upon educational policy.
Taking up the contentions advanced by the parents, our disposition is as follows: In Part II of this opinion we consider and reject certain procedural objections. In Part III we affirm on the merits those parts of the District Court’s decree that relate to pupil bussing, optional zones and faculty integration. In Part IV we conclude that the District Court’s rulings on the track system and on certain aspects of pupil assignment do not materially limit the discretion of the School Board, and that accordingly the parents lack standing to challenge the factual and legal bases underlying these provisions of the decree — a disposition that imports no view by this Court on the merits of the objections tendered by the parents on these issues.
I. Standing to Appeal
The Board of Education, as a corollary of its decision to accept the order below, directed Dr. Hansen not to appeal. Nevertheless, after his resignation was submitted and accepted by the board, Dr. Hansen noted his appeal as Superintendent of Schools. Whatever standing he might have possessed to appeal as a named defendant in the original suit, however, disappeared when Dr. Hansen left his official position.3 Presumably because he was aware of this, he subsequently moved to intervene under Rule 24(a) of the Rules of Civil Procedure in order to appeal as an individual. Although the trial judge found several reasons why such intervention should be denied, the motion was granted “in order to give the Court of Appeals an opportunity to pass on the intervention questions raised here * * *.”4 We agree with the reasoning of the trial court as to Dr. Hansen rather than with its result. The original decision was not a personal attack upon Dr. Hansen, nor did it bind him personally once he left office. And while it may or may not be true that but for the decision Dr. Hansen would still be Superintendent of Schools, the fact is that he did resign. He does not claim that a reversal or modification of the order by this Court would make his return to office likely. Consequently, the supposed impact of the decision upon his tenure is irrelevant insofar as an appeal is concerned, since a reversal would have no effect. Dr. Hansen thus has no “interest relating to the property or transaction which is the subject of the action” sufficient for Rule 24(a), and intervention is therefore unwarranted.
We also find that Mr. Smuck has no appealable interest as a member of the Board of Education. While he was in that capacity a named defendant, the *178Board of Education was undeniably the principal figure and could have been sued .alone as a collective entity. Appellant Smuck had a fair opportunity to participate in its defense, and in the decision not to appeal. Having done so, he has no separate interest as an individual in the litigation.5 The order directs the board to take certain actions. But since its decisions are made by vote as a collective whole, there is no apparent way in which Smuck as an individual could violate the decree and thereby become subject to enforcement proceedings.
The motion to intervene by the parents presents a more difficult problem requiring a correspondingly more detailed examination of the requirements for intervention of right. As amended in 1966, Rule 24(a) (2) permits such intervention
when the applicant claims an interest relating to the property or transaction which is the subject of the action and he is so situated that the disposition of the action may as a practical matter impair or impede his ability to protect that interest, unless the applicant’s interest is adequately represented by existing parties.
Before its recent amendment Rule 24 (a) contained two subdivisions requiring the petitioner to be “bound by a judgment in the action” or “so situated as to be adversely affected by a distribution or other disposition of property which is in the custody or subject to the control or disposition of the court or an officer thereof.” 6 As the trial judge pointed out in his decision to grant intervention to the parents, under the pre-amendment cases the task of defining what constitutes an “interest” was typically “subsumed in the questions of whether the petitioner would be bound or of what was the nature of his property interest.” 7 The 1966 amendments were designed to eliminate the scissoring effect whereby a petitioner who could show “inadequate representation” was thereby thrust against the blade that he would therefore not be “bound by a judgment,” and to recognize the decisions which had construed “property” so broadly as to make surplusage of the adjective.8 In doing so, the amendments made the question of what constitutes an “interest” more visible without contributing an answer. The phrasing of Rule 24(a) (2) as amended parallels that of Rule 19(a) (2) concerning joinder. But the fact that the two rules are entwined does not imply that an “interest” for the purpose of one is precisely the same as for the other.9 The occasions upon which a petitioner should be allowed to intervene under Rule 24 are not necessarily limited to those situations when the trial court should compel him to become a party under Rule 19. And while the division of Rule 24(a) and (b) into “Intervention of Right” and “Permissible Intervention” might superficially suggest that only the latter involves an exercise of discretion by the court, the contrary is clearly the case.10
The effort to extract substance from the conclusory phrase “interest” or “le-v gaily protectable interest” is of limited promise. Parents unquestionably have a sufficient “interest” in the education of their children to justify the initiation of a lawsuit in appropriate circumstances*17911, as indeed was the case for the plaintiff-appellee parents here. But in the context of intervention j the question is not whether a lawsuit should be begun, but whether already initiated litigation should be extended to include additional parties.) The 1966 amendments to Rule 24(a) have facilitated this, the true inquiry, by eliminating the temptation or need for tangential expeditions in search of “property” or someone “bound by a judgment.” It would be unfortunate to allow the inquiry to be led once again astray by a myopic fixation upon “interest.” Rather, as Judge Leventhal recently concluded for this Court, “[A] more instructive approach is to let our construction be guided by the policies behind the ‘interest’ requirement. * * * [T]he ‘interest’ test is primarily a practical guide to disposing of lawsuits by involving as many apparently concerned persons as is compatible with efficiency and due process.”12
The decision^ whether intervention of right is warranted thus involves an accommodation between two potentially conflicting goalsjJ~"lo achieve judicial v economies of scale by resolving related issues in a single lawsuit, ándito prevent the single lawsuit from becoming fruitlessly complex or unending. Since this •task will depend upon the contours of the particular controversy, general rules and past decisions cannot provide uni-'' formly dependable guides.13 The Supreme Court, in its only full-dress examination of Rule 24(a) since the 1966 amendments, found that a gas distributor was entitled to intervention of right although its only “interest” was the economic harm it claimed would follow from an allegedly inadequate plan for divestiture approved by the Government in an antitrust proceeding.14 While conceding that the Court’s opinion granting intervention in Cascade Natural Gas Corp. v. El Paso Natural Gas Co. “is certainly susceptible of a very-, broad reading,” the trial judge here would distinguish the decision on the ground that the petitioner “did show a strong, direct economic interest, for the new company [to be created by divestiture] would be its sole supplier.”15 Yet while it is undoubtedly true that “Cascade should not be read as a carte blanche for intervention by anyone at any time,” 16 there is no apparent reason why an “economic interest” should always be necessary to justify intervention. The goal of “disposing of lawsuits by involving as many apparently concerned persons as is compatible with efficiency and due process” may in certain circumstances be met by allowing parents whose only “interest” is the education of their children to intervene. In determining whether such circumstances are present, the first requirement of Rule 24(a) (2), that of an “interest” in the transaction, may be a less useful point of departure than the second and third requirements, that the applicant may be impeded in protecting his interest by the action and that his interest is not adequately represented by others.
This does not imply that the need for an “interest” in the controversy should or can be read out of the rule. But the requirement should be viewed as a prerequisite rather than relied upon as a determinative criterion for intervention. *180«'If barriers are needed to limit extension of the right to intervene, the criteria , of practical harm to the applicant and the adequacy of representation by others are better suited to the task. If those requirements are met, the nature of his “interest” may play a role in determining the sort of intervention which should be allowed — whether, for example, he should be permitted to contest all issues, and whether he should enjoy all the prerogatives of a party litigant.17
Both courts and legislatures have recognized as appropriate the concern for their children’s welfare which the parents here seek to protect by intervention.18 While the artificiality of an appeal without the Board of Education cannot be ignored, neither can the importance of the constitutional issues decided below. The relevance of substantial and unsettled questions of law has been recognized in allowing intervention to perfect an appeal.19 And this Court has noted repeatedly, “obviously tailored to fit ordinary civil litigation, [the provisions of Rule 24] require other than literal application in atypical cases.”20 We conclude that the interests asserted by the intervenors are sufficient to justify an examination of whether the two remaining requirements for intervention are met.
Rule 24(a) as amended requires not that the applicant would be “bound” by a judgment in the action, but only that “disposition of the action may as a practical matter impair or impede his ability to protect that interest.” In Nuesse v. Camp21 this Court examined a motion by a state commissioner of banks to intervene under the new Rule 24(a) in a suit brought by a state bank against the United States Comptroller of Currency. The plaintiff claimed that the defendant would violate the National Bank Act22 if he approved the application of a national bank to open a new branch near the plaintiff’s office. The intervenor feared an interpretation of the statute which would stand as precedent in any later litigation he might initiate. The Court, agreeing, concluded that “under this new test stare decisis principles may in some cases supply the practical disadvantage that warrants intervention as of right.”23 But if a decision interpreting a statute against the applicant’s contentions would so handicap him in pursuing a subsequent lawsuit as to justify intervention, the appellants in this case would face a hopeless task in a later suit. The intervening parents assert that the Board of Education should be free tp make policy decisions concerning such matters as pupil and faculty assignments without the constraints imposed by the decision below. If allowed to intervene, they hope to show that the past practices condemned by the trial court did not violate the Constitution and hence that the decree should be vacated. Should succeed, the Board of Education wiHrl.fpfv' deed be freed of certain constraints upon its exercise of discretion in establishing educational policy. But if the right to intervene is denied and the decision below becomes final, there is no apparent way for the parents to pursue their in*181terests in a subsequent lawsuit. True, they could assert that the new policies adopted by the Board of Education in compliance with the order below are unconstitutional. But this would be a sterner. challenge than they would face as intervenors here,: although the new policies might not be constitutionally required, they might also not be unconstitutional. Indeed, the very premise for the intervenors’ attack on the trial court decision is that school authorities can exercise wide discretion without encountering affirmative constitutional duties or negative prohibitions. While the scope of this discretion is uncertain, its existence is not: some policies may be constitutionally permissible, and hence immune to attack in a fresh lawsuit, which are not constitutionally required. Since this is so, the intervenors have borne their burden to show that their interests would “as a practical matter” be affected by a final disposition of this case without appeal.
The remaining requirement for intervention is that the applicant not be adequately represented by others. No question is raised here but that the Board of Education adequately represented the intervenors at the trial below; the issue rather whether the parents were '■fMPguately represented by the school decision not to appeal. The presumed good faith of the board in reaching this decision is not conclusive. “[B]ad faith is not always a prerequisite to intervention,” 24 nor is it necessary that the interests of the intervenor and his putative champion already a party be “wholly ‘adverse.’ ” 25 As the conditional wording of Rule 24(a) (2) suggests in permitting intervention “unless the applicant’s interest is adequately represented by existing parties,” “the burden [is] on those opposing intervention to show the adequacy of the existing representation.” 26 In this case, the interests of the parents who wish to intervene in order to appeal do not coincide with those of the Board of Education. The school board represents all parents within the District. The intervening appellants may have more parochial interests centering upon the education of their own children. While they cannot of course ask the Board to favor their children unconstitutionally at the expense of others, they like other parents can seek the adoption of policies beneficial to their own children. Moreover, considerations of publicity, cost, and delay may not have the same weight for the parents as for the school board in the context of a decision to appeal. And the Board of Education, buffeted as it like other school boards is by conflicting public demands, may possibly have less interest in preserving its own untrammeled discretion than do the parents. It is not necessary to accuse the board of bad faith in deciding not to appeal or of a lack of vigor in defending the suit below in order to recognize that a restrictive court order may be a not wholly unwelcome haven.
The question of adequate representation when a motion is made for intervention to appeal is related to the question of whether the motion is timely. To a degree it may well be true that a “strong showing” is required to justify intervention after judgment.27 But by the same token a failure to appeal may be one factor in deciding whether representation by existing parties is adequate.28 As the opinion of the trial court in granting intervention demon*182strates, the leading cases in which intervention has been permitted following a judgment tend to involve unique situations.29 The very absence of any precedent involving the same or even closely analogous facts requires a close examination of all the circumstances of this case. We conclude that the inter-venor-appellants here have shown a sufficiently serious possibility that they were not adequately represented in the decision not to appeal.
Our holding that the appellants would be practically disadvantaged by a decision without appeal in this case and that they are not otherwise adequately represented necessitates a closer scrutiny of the precise nature of their interest and the scope of intervention that should accordingly be granted. The parents who seek to appeal do not come before this court to protect the good name of the Board of Education. Their interest is not to protect the board, or Dr. Hansen, from an unfair finding. Their asserted interest is rather the freedom of the school board — and particularly the new school board recently elected30 — to exercise the broadest discretion constitutionally permissible in deciding upon educational policies. Since this is so, their interest extends only to those parts of the order which can fairly be said to impose restraints upon the Board of Education. And because the school board is not a party to this appeal, review should be limited to those features of the order which limit the discretion of the old or new board.
II. Procedural Issues
Two additional procedural contentions raised by the appellants require attention. The first concerns the severance for trial by a three-judge district court under 28 U.S.C. § 2282 (1964) of the first cause .of action stated in the six-count complaint originally filed by the plaintiff-appellees. The appellants argue that since a three-judge court was required for the first count, which challenged the constitutionality of the then-existing statutory'regime by which the judges of the United Spates District Court appointed the members of the Board of Education,31 the remaining five counts had likewise to be submitted to a three-judge court although they challenged not the statute but only the school board’s policies. We find the argument without merit for the reasons outlined by the author of this opinion in denying a motion by the defendants below to expand the jurisdiction of the three-judge court to include counts twp through six.32 The appellants rely chief ly upon Florida Lime & Avocado Growers v. Jacobsen33 and Zemel v. Rusk.34 In both those cases, however, the Supreme Court interpreted all of the contentions raised to constitute attacks upon the statutes involved. Success on any score would in each case have prevented enforcement of the statute. In this case, on the other hand, counts two through six were directed only at policies of the Board of Education. The success of the plaintiff-appellees did not and could not call into question the authority of the school board to carry out the responsibilities entrusted to it by the underlying statute, which the three-judge court had meanwhile found constitutional in dismissing count one.35
The appellants also contend that the trial judge erred in failing to recuse himself in response to the motion for voluntary displacement filed by the defendants below on the fourteenth day of trial. The motion was supported by exhibits con*183sisting of an article by the trial judge dealing with legal remedies for de facto segregation,36 an excerpt from the trial transcript purportedly showing that the trial judge had prejudged the merits of the defendants prospective motion for judgment, and articles and editorials in various newspapers and magazines commenting upon the supposed predilections of the trial judge in dealing with the questions of law involved in the case.
Even assuming that the motion satisfied the requirements for an affidavit of bias or prejudice under 28 U.S.C. § 144, (1964),37 there is serious doubt that it was timely. The allegedly improper remarks from the bench — which were in any event of nugatory importance at most — had occurred more than two weeks before. The law review article had been published more than a year before. Since the defendants suggested no “good cause * * * for [their] failure to file it” at the commencement of trial, as the statute requires, we have small difficulty concluding that the trial judge acted properly in denying the motion when , made in the midst of a lengthy trial.38
III. Affirmance on the Merits of Rulings Relating to Optional Zones, Faculty Integration and Pupil Bussing
The trial court entered a seven-part decree at the conclusion of its lengthy opinion. Its provisions settle under five headings;
(1) General: The defendants were “permanently enjoined from discriminating on the basis of racial or economic status in the operation of the District of Columbia school system;”
(2) Optional Zones: The defendants were directed to abolish specified optional zones in which pupils could choose which of two schools they wished to attend.
(3) Faculty Integration: The defendants were directed (a) to provide for substantial faculty integration in all District schools immediately, and (b) to file with the court a plan for full faculty integration in the future;
(4) Pupil Assignment: The defendants were directed (a) to provide transportation for volunteering pupils from overcrowded schools east of Rock Creek Park to schools with excess capacity west of the park, and (b) to submit to the court a long-range plan of pupil assignment to alleviate racial imbalance among District schools; and
(5) Ability Grouping: The defendants were directed to abolish the “track system.” 39
The general requirement that the\ Board of Education not discriminate on racial or economic grounds is, of course, no more than declaratory of basic constitutional requirements. The school-board’s freedom of discretion which the intervenor-appellants seek to protect is therefore not improperly impaired by that part of the order.
As for the optional zones, the trial court found on the basis of a ease-by-ease evaluation that they had been created in areas where changing residential patterns within the District resulted in white enclaves where normal application of the neighborhood school policy would assign white children to predominantly black schools.40 These findings are not clearly erroneous, since the trial court’s finding that discriminatory intent underlay these zones is supported by the record.41 The elimination of these optional zones is therefore a clearly appropriate remedy for the segregation flowing from these optional zones. The *184Board of Education has filed a report of compliance, not yet acted upon by the trial court, stating that all optional zones, including some not mentioned in the opinion of the trial judge, have been abolished.
Those parts of the decree dealing with faculty integration also are premised upon a finding of discriminatory intent. Specifically, the trial court concluded that although black teachers were hired and promoted without bias, “an intent to segregate has played a role in one or more of the stages of teacher assignment.” 42 Indeed, the appellants do not challenge the holding that the Boatfi of Education has an affirmative duty to integrate the faculty and administrative personnel of the District schools.43 Their sole contention is that the “mandatory injunction” requiring compulsory reassignments of present teachers was improper. In so arguing the appellants rely on the belief of Dr. Hansen that such transfers would engender “resentment” among teachers, thereby aggravating the District’s already severe problem in attracting qualified teachers, and the recommendation advanced in the task force study of District schools, commonly called the Passow Report,44 that other devices such as recruitment of new teachers and voluntary transfers of existing teachers should be employed.
We do not read the opinion below to contain any such “mandatory injunction.” The actual decree requires only substantial teacher integration immediately and a long-range plan for full faculty integration. In discussing the action that will be necessary to achieve integration, the opinion does note that in addition to such steps as color-conscious assignments of incoming teachers, “this court * * * has no doubt that a substantial reassignment of the present teachers, including tenured staff, will be mandatory.” 45 Admittedly these words are ambiguous as to whether compulsory reassignments will at some future date be made mandatory by the court or whether the trial court simply believed that the school board in order to comply with the requirement of eventual full integration will be forced to make mandatory reassignments. But since the actual decree speaks only of integration, and in doing so carefully distinguishes between the need for substantial integration immediately and the long-term requirement for full integration, we believe that the ambiguity should be resolved in favor of the latter construction.
That being so, the words of the opinion reduce to a mere prediction which may be proved incorrect by the success of other tactics in achieving integration. We note that the school board has filed reports detailing the present progress toward faculty integration and its long-term plans to achieve integration. The long-term plan does not include mandatory reassignments, and has not been acted upon by the trial court. The school board has in that report outlined the difficulties of radically shuffling present teachers about the District. In evaluating its arguments, we are confident that the trial judge will assign due weight to the proper considerations of teacher qualifications and the reluctance of teachers residing close to their present schools to travel long distances to a new assignment. Thus we do not construe the decree to preclude consideration of the plight, referred to in the Passow Report, *185of teachers who have previously performed at a satisfactory level in the school system but who do not have requisite ability and background for teaching disadvantaged students.46 At the same time, regardless of the opinions of Dr. Hansen and the authors of the Pas-sow Report, we point out the obvious: racial prejudice on the part of teachers, who are employees of the government, is not a valid justification for continued segregation.
In its most recent term the Supreme Court has made clear that at this late date the remedy for segregatory practices must be prompt. “The burden on a school board today is to come forward with a plan that promises realistically to work, and promises realistically to work now.” 47 This does not preclude a proper regard for the administrative difficulties of transition to a new day. It does preclude procrastination rooted in racial feelings.
The trial court also ordered the Board of Education to provide transportation for volunteering children in overcrowded schools east of Eock Creek Park to schools with excess capacity west of the park and directed the board to file a long-term plan for pupil assignment “complying with the principles announced in the court’s opinion.” 48 In doing so the court specifically did not attack the neighborhood school policy in view of its wide use throughout the country and the .absence of “segregatory design” in its application in Washington 49 The trial judge did, however, find a notable inequality of resources and facilities between predominantly black schools and those with a greater admixture of whites.50 The court also examined in detail the repeated findings by the Supreme Court and others that racially segregated schools harm the black child.51
While suggesting that the continuing vestiges of unconstitutional faculty segregation might support the requirement of short-term pupil bussing,52 the trial court premised this part of its order on the finding that the school board had not shown that the cost of providing such transportation justified the denial of equal educational opportunity resulting from overcrowded and predominantly black schools.53 Since Dr. Hansen testified in favor of bussing at the pupil’s expense to relieve overcrowding, the appellánts travel a fine line in arguing that the mere requirement for payment of transportation costs by the school board improperly restrains its freedom of discretion. Indeed, the appellants may well have conceded away their , argument in agreeing that overcrowded conditions in some schools cannot justify the failure of the Board of Education to provide kindergartens for all students if it provides them for any.54
Opinions may differ as to the source and magnitude of differences between the educational opportunities offered by various District schools. But when the differentiating factor is as clear as overcrowding versus excess capacity, we agree with the trial court that transportation to level out pupil density can fairly be required of the school board.
*186IV. Determination that District Court’s Rulings in Long-Range Pupil Assignment and Track System Do Not Limit School Board’s Discretion to Pursue Educational Goals and to Provide Ability Grouping and that Accordingly Parents Lack Standing to Challenge Underlying Factual and Legal Bases of These Provisions of the Decree
We conclude that the long-range plan of pupil assignment required by the order of the trial court does not trammel the discretion of the school board. The opinion does direct the board to consider such alternatives as educational parks and the Princeton plan.55 But in the absence of a more specific order this part of the directive is merely precatory. The demonstrated inequalities among Washington schools justifies an order requiring the School Board to consider alternative policies; we cannot believe that the freedom of action the intervenor-appellants seek to protect for the Board of Education need include the freedom to stand pat without engaging in further re-evaluation of assignment policies.
The opinion of the trial court also states,
Where because of the density of residential segregation or for other reasons children in certain areas, particularly the slums, are denied the benefits of an integrated education, the court will require that the plan include compensatory education sufficient at least to overcome the detriment of segregation and thus provide, as nearly as possible, equal educational opportunity to all schoolchildren.56
Even aside from the feelings of inferiority engendered by black schools, there is no doubt that education in a ghetto school can fatally limit a child’s horizons and fail to prepare him for constructive participation in society. Residential patterns and the heavy concentration of black children in the District public schools may defy the best efforts of the Board of Education to achieve racially balanced schools while these factors persist57 The long run solution may lie in more broadly based school district extending---beyond.'.the borders of theJ District. But such a development is beyond the pale of judicial action. Appellants could have no cause to object to any efforts of the Board of Education to enlist the voluntary cooperation of other school districts. Similarly we cannot see that appellants would have cause, while we still have black schools within the District, or for that matter at any time, to complain about the making of special efforts to prepare disadvantaged students to find their place in a wider world. And we see no realistic basis for saying that the references by the District Court to the need for such efforts operates in fact to curtail the School Board’s discretion.
What appellants seek is assurance that a neighborhood school approach may be maintained by the Board. The decree permits retention of the neighborhood school approach where it does not result in relative overcrowding or other inequality of facilities.
Any other comments in the opinion that may be taken as favoring abandonment of the neighborhood school approach have standing only as suggestions advanced for consideration by the Board. The Board has also received suggestions, in the Passow Report, for decentralization of the school program into subsystems, with eight community superintendents, and “that the schools be transformed into community schools, collecting and offering the variety of services and opportunities its neighborhood needs.” We are not to be taken as approving or disapproving either of *187these general philosophies. On this appeal this Court is concerned only with the provisions of the decree containing orders that something be done or stop-péd — and it is our view that these provisions do not improperly encroach on the Board’s statutory discretion.
The last provision of the decree below to be considered is the order that the “track system” be abolished. Behind that curt directive lies a welter of facts and conflicting opinions. In theory, the “track system” like any procedure for ability grouping sought to classify students according to their “ability,” whether present or potential, and to provide the education best suited to the needs of each individual child. And since any such system is inevitably fallible, the procedure must make adequate provision for review and reassignments. Unfortunately, as the Passow Report concluded, “[T]he tracking system was as often observed in the breach as it was in the adherence to any set of basic tenets.” 58 The trial court concluded that the excessively rigid separation of students in different classrooms made each track a largely self-contained world; that the education provided in the lower tracks was so watered-down as to be more fairly described as warehousing than as remedial education; that an excessive reliance upon intelligence tests standardized to white middle-classed norms made initial classifications erratic and irrational in terms of the professed goals of the system; and that the schools slighted their duty to encourage students to “cross-track” in individual course selections and to review track assignments in order to make reassignments where initial error or later developments made this appropriate.59
The appellants challenge these findings as well as their constitutional significance if valid. And indeed it would be little less than amazing if such an extended analysis of this complex problem produced a limpid pool of unassailable facts. In some cases, as the words of the Passow Report suggest, the difficulty lies in the gulf that may separate theory and practice. Thus, the trial court accepted the “general proposition that tests are but one factor in programming students,”60 but went on to conclude that this single factor played a disproportionate role. A keystone of this analysis was the reasoning that while teachers play a major part in the assignment decision, their evaluations of the student will be markedly influenced by his reported test scores. This conviction is certainly shared by many, but, resting as it does in part on beliefs concerning human nature and the pressures of time which beset teachers like judges, the proposition cannot be demonstrated beyond cavil.
Another difficulty lurking in the fact-finding process is the absence of an accepted yardstick to measure the performance of an ability-grouping system. In some cases statistics are ineluctably ambiguous in their import — the fact that only a small percentage of pupils are reassigned may indicate either general adequacy of initial assignments or inadequacy of review. Superintendent Hansen himself appreciated the importance of care in initial assignments and timely reevaluation. When funds became available the school administration improved the track system by providing for the study by a clinical psychologist, referred to by the District Court, of 1,272 students assigned or about to be assigned to the “special academic” or “basic” track. This study revealed almost two-thirds to have been improperly classified.61 The track system was duly changed so as to require that a psychologist participate prior to assignment *188of any child to the “basic” track. The track system, in short, was not static or frozen, but rather a program in flux, which underscores the reality that discontinuance of this system as it happened to exist at a moment in time was not coercive or inhibiting of the school board’s discretion in the way feared by the appellants.
The Passow Report also made an exhaustive analysis of the operation of the “track system” and like the trial court criticized many aspects of it.62 This Court would face a difficult task were it necessary to stack each finding of the trial court against the comparable findings of the Passow Report. Indeed it may be that the District Court would have made different findings — though possibly it would have entered the same judgment — if the Passow Report had been published and made part of the record prior to the issuance of the findings instead of being added to the file and record by a supplementary order.
The decision of this case does not call on us to undertake any formidable survey or analysis. There are, indeed, a number of contentions we do not find it necessary to consider, and we think it appropriate to state so clearly, in order to obviate avoidable misunderstanding of the scope and purport of our ruling in this sensitive area. We do not find it necessary to resolve appellants’ broad legal contentions.63 Nor do we find it necessary to rule on appellants’ intermediate legal contentions.64 Certainly we do not find it necessary to plunge into a sea of factual contentions and difficult issues of educational policy, such as (a) considering the proper balance, in tailoring educational programs to the ability of the individual student, between the practical need to group children by measurement of presently demonstrated ability and the simultaneous need to assure all students an opportunity to realize their educational potential, (b) considering to what extent verbal tests may be utilized, either as valid predictors of school success, or as indicators of the gaps in skills that must be filled if minority children are to emerge from poverty backgrounds and become effective participants in contemporary American life, and (c) considering to what extent verbal tests must be adjusted or supplemented in the light of available indicators of educational ability not dependent on existing verbal skills.
The intervenors come before this Court only to protect the freedom of the Board of Education to exercise the widest discretion in setting educational policies within the District. The order under challenge directs only that the “track system” be abolished. Moreover, in doing so, the trial court specifically “assumed that * * * [ability] grouping can be reasonably related to the purposes of public education.”65 In compliance with the decree the “track system” as such has been abolished for more than a year. Both the opinion below and the Passow Report indicate that changes were continually being made in the process of ability grouping in District *189schools before the decision below was delivered.66 In light particularly of the detailed recommendations made in the Passow Report for change in procedures for ability grouping, we have little if any basis for assuming that the scope of the board’s reevaluation would be materially affected by the judicial directive to abolish the “track system.” We cannot believe, for example, that appellants would gainsay the simple proposition that a board whose attention was called to problems of the track system — whether by observations of the trial judge, quite apart from any decree, or by the Passow Report, or by other sources— could hardly be expected to sit by without making substantial efforts to upgrade the performance of those children whose present verbal skills were low but who had the innate capacity to respond to substantial efforts.
The ruling of the District Court permitting intervention to appellant-parents was prescient, especially in view of the spirit of the Supreme Court’s ruling of Flast v. Cohen.67 The case is unique, there is a clear controversy, and illumination of the issues is in the public interest. The spirit of Flast v. Cohen likewise enjoins us to confine the issues considered on the merits upon this intervention to those issues that have a realistic nexus to the interests and concerns of the appellants as parents of school children, white and black. This Court’s ruling is consistent with and not in derogation of the realistic and understandable concerns of the parents that there be adequate scope for ability groupings' in the administration of the school system. The District Court made it clear, and in any event this Court’s opinion makes it clear, that the decree permits full scope for such ability grouping.
This Court’s disposition is not to be taken as in any way indicating indifference to the expressed concern of appellants that the school board be able to exercise discretion in pursuing the goals of both quality and equality in educational opportunity without restraint attributable to an assertedly unlawful decree. The District Court’s decree must be taken to refer to the “track system” as it existed at the time of the decree. It merits reiteration, and it is perfectly clear from the record, that neither the school board nor Superintendent Hansen were satisfied with the track system as it was or desired a freeze in its features. They were aware of the need for changes, and sought necessary funds. Of paramount importance is the fact that the school administration allocated substantial funds for commissioning the Passow Report. The significance of that report as a likely prime mover energizing other changes was apparent from the start and can hardly be controverted.
Therefore, the provision of the decree below directing abolition of the track system will not be modified. We conclude that this directive does not limit the discretion of the school board with full recognition of the need to permit the school board latitude in fashioning and effectuating the remedies for the ills of the District school system. This need for according scope and flexibility is heightened by the circumstance that in 1968 the District of Columbia had its first opportunity to elect a school board. This is an area in which Congress has entrusted to the Board of Education — now an elected board — “the control of the public schools of the District of Columbia,”68 and provided that this board “shall determine all questions of general policy relating to the schools.”69 As we have already noted appellants cannot realistically deny that the elected board will wish to address itself to all deficiencies in public education, and to take into account all perti*190nent analyses, whether in the comments of legislative staffs, the District Court’s opinion, the Passow Report, perhaps future studies, etc. The problems are complex, and the board’s exploration will undoubtedly be extensive. The exploration must be conducted consistently with constitutional requirements, and these in turn are dependent on manageable standards. The simple decree enjoining the “track system” does not interpose any realistic barrier to flexible school administration by a school board genuinely committed to attainment of more quality and equality of educational opportunity. If the District Court should impose an undue restraint on the school board’s efforts to improve quality and equality of educational opportunity, such action would, of course, be subject to expeditious correction by this court.
As construed by this opinion, the order entered by the trial court does not require modification to meet any of the challenges that intervenors have standing to raise. However, in view of the change in composition of the school board following from the recent election, it seems appropriate at this juncture to enter an order of remand, rather than a simple affirmance,' to make doubly clear that- the plans heretofore filed in this cause by the prior board do not foreclose the new board from evolving new programs and orders pertaining to administration of the schools.
So ordered.
McGOWAN, Circuit Judge:
Congress has explicitly vested in the Board of Education the “control of the public schools of the District of Columbia,” and has directed that that body “shall determine all questions of general policy relating to the schools.” 31 D.C. Code §§ 101, 103 (1967). Among such “questions of general policy” was surely the one of whether the Board would appeal the decision of the District Court in this case. In a climate of change and re-examination created by the Board’s own initiative in commissioning the so-called Passow Report, the Board addressed itself to the major issues of policy underlying the question of whether to appeal. Those issues obviously comprehended much more than the mere legal soundness of the District Court’s decision. The Board decided by a vote of 6 to 2 not to appeal. That action, in my view, ended this litigation for appellate purposes, except for such appeals as the Board may elect to take in the future from any further orders of the District Court.
My colleagues agree with me as to appellants Hansen and Smuck. Some of them — enough to constitute with me a majority — have also concluded that the appellant parents are not properly before us with respect to certain portions of the decree. They reach that conclusion by a more tortuous path than I find it necessary to take, but, in respect of intervention, we reach the same result to this limited degree, namely, that there is no one before us with standing to challenge those provisions of the decree which (1) generally enjoin the Board from racial or economic discrimination, (2) require the submission of a pupil assignment plan for the Court’s approval, and (3) enjoin the operation of the track system. This result necessarily means that the appeals with respect to these provisions of the decree are dismissed without resolution of their legal merit.
I would do the same with the decree in its entirety. The appellant parents sought to intervene in this litigation only after the Board had decided not to appeal. Their intervention pleadings state as their only reason for seeking this belated entry into the case that they “dissent from” the Board’s decision. There are no allegations of any kind that the Board majority was faithless to its trust, or acted corruptly, conspiratorially, or from any improper motivation whatsoever. Their position essentially is that, had they been on the Board, they would have voted differently. I cannot believe that it is either good *191law or sound policy to permit intervention under these circumstances solely to enable dissident citizens to prolong a lawsuit against the Board which the Board, in the exercise of its statutory responsibility for the welfare of the schools, has thought it advisable to terminate.
Rule 24(a) (2), Fed.R.Civ.P., says that there is to be no intervention if “the applicant’s interest is adequately represented by existing parties.” The only inadequacy of representation asserted by appellant parents is a policy disagreement with the Board over its decision not to appeal. This policy issue, however, is committed by Congress to the Board, and it is anomalous in the extreme to think that Congress, in accepting the Federal Rules, contemplated that any District resident who did not like the Board’s decision to end a lawsuit could second-guess that decision by claiming a right to intervene.
I think the granting of intervention here for any purpose is an unacceptably loose construction of the Federal Rules which, I hope, will not endanger rational principles of judicial administration in other, and less emotional, areas of litigation. Permitting it here is also far from a promising omen for the capacity of the new and, for the first time, popularly-elected Board to keep firmly within its own grasp all important strands of educational policy.
I. have from the beginning not thought it necessary to do other with these appeals than to dismiss them.1 No one of my colleagues has been prepared to embrace this position completely. We are left, then, with the need to dispose of this appeal in some reasonably definitive manner and thereby to foster the desirable objective of moving this litigation along towards its eventual termination. To this end, and for this purpose, I am willing to deal with the merits of those particular provisions of the decree as to which my colleagues are all in agreement that at least some of the appellants have standing. These are (1) the requirement of transportation for students at overcrowded schools who wish to go to under-utilized schools, (2) the abolition of optional zones, and (3) the requirements with respect to teacher integration. These provisions of the decree seem to me consistent with established and authoritative legal doctrines. Rogers v. Paul, 382 U.S. 198, 86 S.Ct. 358 (1965) ; Bradley v. School Board, 382 U.S. 103, 86 S.Ct. 224 (1965) ; Brown v. Board of Education, 347 U.S. 483, 74 S.Ct. 686, 98 L.Ed. 873 (1954) ; Sweatt v. Painter, 339 U.S. 629, 70 S.Ct. 848, 94 L.Ed. 1114 (1950).
I vote to affirm the judgment of the District Court in those respects, and also with reference to the issues dealt with in Part II of Judge BAZELON’S opinion; and to this end I join in Parts II and III of that opinion. Although, as indicated above, I would have found no standing at all, since I am alone in that point of view and concur in the result reached in Part IV, I also join in that part.
with whom Circuit Judges BURGER and TAMM join, dissenting:
When Congress adopted the “District of Columbia Elected Board of Education Act,” 1 it announced “Findings and Declaration of Purpose,” as follows:
The Congress hereby finds and de-dares that the school is a focal point of neighborhood and community activity ; that the merit of its schools and educational system is a primary index to the merit of the community; and that the education of their children is a municipal matter of primary and personal concern to the citizens of a community. It is therefore the purpose of this Act to give the citizens of the Nation’s Capital a direct voice in the development and conduct of the public educational system of the District of Columbia; to provide organizational arrangements whereby educational programs may be improved and coordinated with other municipal programs; and to make District schools centers of neighborhood and community life.
Additionally, the Act was made to read explicitly in pertinent part:
The control of the public schools of the District of Columbia is vested in a Board of Education to consist of eleven elected members * * *.
(Emphasis mine.)
The term of office of an elected member of the new Board is to begin at noon on the fourth Monday in January, 1969, and meetings of the Board are to be open 2 to the public. Specifically, Congress made it proof positive that “no final policy decision * * * may be made by the Board of Education in a meeting * * * closed to the public.” It is obvious from the legislative hearings that Congress was quite aware, as assuredly the general public in the District of Columbia well knows, that complex questions had arisen in the administration of the schools in the District. The general awareness became specific following the trial3 which commenced July 18, 1966 and continued off and on until October 25, 1966. Circuit Judge Wright on June 19, 1967 as trial judge rendered his opinion 4 which incorporated his findings of fact, conclusions of law and a decree.5
It seems to me clear that Congress was intent upon the creation of an entirely new entity to which has been delegated the “control” of the public schools of the District of Columbia in furtherance of what might be discerned as the “direct voice” of our District citizens. The situation here is clearly unique and, likely enough, finds no counterpart throughout the nation. There had been widespread dissatisfaction with the administration of our schools through a Board appointed by the District Judges. We ourselves had taken note of the problems and had recognized that we had been confronted with “a very sensitive political question.”6 That discrimination in various forms had been continued for many years or had arisen since May 19, 1954 7 was abundantly establish*193ed by Judge Wright’s findings in Hobson v. Hansen.8 The details thus became apparent and the extent of the complexities of the problems confronting the schools in the Nation’s Capital can not be doubted. Accentuation of the realities is to be found in what Judge Bazelon has written. All the more on that account I find myself impressed by Judge Wright’s “parting word” where as he concludes his opinion he says:
It is regrettable, of course, that in deciding this case this court must act in an area so alien to its expertise. It would be far better indeed for these great social and political problems to be resolved in the political arena by other branches of government.9
I agree. It is precisely at this point that I feel the interposition of the judiciary should cease. The evils of de jure segregation have been exposed. The factors which have led some to conclude that de facto segregation has existed have been laid bare. I think — right here —is the place at which we should exercise judicial restraint. Declaratory and injunctive relief had been sought, and Judge Wright had entered his decree. I think that decree should be vacated.
It is fundamental that in circumstances such as here have been disclosed the courts are not bound to grant the relief as prayed. Dr. Hansen as Superintendent of schools had announced his retirement effective as of July 31, 1967. The “old” Board of Education presently will have been supplanted by the Board so recently elected by our citizens. Many of the practices exposed at trial have already been ameliorated, and yet others may prove impossible of resolution unless the Congress shall become persuaded that funds must be provided. In other aspects, difficulties must be overcome in terms of practicalities which can not be ignored. Transportation problems, new schools, pupil assignments, teacher integration and yet other phases of the situation disclosed in Hobson v. Hansen 10 must be met in accordance with thé policy to be formulated by the elected Board acting in furtherance of the purposes of the Act, supra.11
. Undoubtedly in the day and time of it, the issuance of the decree seemed essential in light of Brown v. Board of Education.12 But now that Congress has spoken and the electorate has acted, a very different status has evolved. Putting aside any effort to achieve in advance of action by the newly elected Board, a definition of judicially manageable standards to bind its execution of the policy entrusted to it, it is enough to say that wrongs have been exposed. The members of that Board have sought election thoroughly acquainted with the myriad problems for which solutions must be sought. It is a matter of judgment on our part, to be sure, but we can not be oblivious to the fact that political considerations and the necessity for compromise and readjustment will have weight as the new Board enters upon its duties.
Merely by way of analogy we may refer to the concluding observation by Mr. Justice Frankfurter in Colegrove v. Green13:
The Constitution has left the performance of many duties in our gov*194ernmental scheme to depend on the fidelity of the executive and legislative action and, ultimately, on the vigilance of the people in exercising their political rights.
In short, it is entirely apropos that the court should not enter the stormy14 thicket. With Mr. Justice Rutledge in Colegrove,15 I think this court now should decline further to exercise its jurisdiction, and the cause should be remanded to the District Court with directions to vacate the decree.16
APPENDIX
I
Judicial Conference of the District of Columbia Circuit
Resolution by the Judges of the United States District Court for the District of Columbia and the United States Court of Appeals for the District of Columbia, in Executive Session of the Judicial Conference for the Circuit, 1967.
RESOLUTION
WHEREAS, Under the District of Columbia Code (1961) Title 31, Section 101, the Judges of the United States District Court for the District of Columbia are charged with the duty of appointing the members of the Board of Education of the District of Columbia, and
WHEREAS, This duty has rested with the Judges of the United States District Court for the District of Columbia since June 20, 1906, and
WHEREAS, In recent years the appointment of members of the Board of Education has become an extremely controversial question among the citizens of the District of Columbia, and
WHEREAS, The matter of appointing members of the Board of Education is now a very sensitive political question, not in the party sense, but in a broader sense, and
WHEREAS, The Judges of the United States District Court for the District of Columbia feel that they should not be required to act in this political field, and .
WHEREAS, The Judges of the United States District Court for the District of Columbia feel that in view of the foregoing, the appointive power of members of the Board of Education should not be in the Judges of the United States District Court for the District of Columbia ; now, therefore, be it
RESOLVED, That the Congress of the-United States be requested to amend the District of Columbia Code (1961) Title 31, Section 101, to remove the appointive power of members of the Board of Education from the Judges of the United States District Court for the District of Columbia and to lodge said power elsewhere.
Adopted: May 26, 1967.
A true copy:
Teste:
/s/ Nathan J. Paulson Secretary of the Judicial Conference of the District of Columbia Circuit
*195Appendix
II
THE WASHINGTON POST Thursday. Dec. 5, 1068
Hobson to Bypass Mayor and Council
Julius Hobson, militant School Board member-elect, said last night that he plans to deal directly with Congress on requests for District school funds and will bypass the May- or and City Council when he takes office in January.
“I got 61,000 votes, The Mayor got 1, from President Johnson,” Hobson told a group of about 35 at a meeting in the Church of the Redeemer, 14th and Girard Streets ne.
Hobson said that he had called upon education experts across the country to give him advice for the new job. He has asked a Harvard research group to conduct a cost analysis study of the school budget and to develop proposals for ■changes in the curriculum, he said.
■ As a first order of business, he said, he intended to see that the Wright decision was carried out to the letter of the law.
(Hobson was the plaintiff in the Wright decision, handed down in June, 1967, which abolished the track system of ability groupings in D.C. schools.)
Hobson said he had asked the New Jersey Council on Constitutional Law to give him a full legal interpretation of the powers of the School Board under the Wright decision, and also how it affects teachers.
Schools Supt. William R. Manning and all present members of the school administration will be given a fair chance, Hobson said, but he indicated that he probably will call for the dismissal of at least two men — John D. Koontz, an assistant superintendent, and Granville Wood-son, director of buildings and grounds.
Koontz admitted that he drew school boundary lines to separate blacks from whites in his testimony in the case that led to the Wright decision, Hobson said.
“Men like Koontz have to go,” Hobson said.
Hobson said Woodson had a record for not following School Board directives.
Hobson hurled frequent criticisms at Anita Allen, incumbent School Board member and his chief contender for chairman of the new Board.
“I understand she is railroading stuff through. The new Board will have a lot to clean up,” he said.
The five new members who were endorsed by the Triple-E committee and Muriel Alexander, who got Hobson’s personal endorsement, add up to a “working majority on paper” on the new Board, he explained. “If these people stick to it, we can change the Board of Education,” he said, But, he said, he also was prepared to work without an alliance.
*196BURGER, Circuit Judge (with whom Circuit Judge TAMM joins):
We'join in Judge DANAHER’S opinion and his view that sound principles of judicial restraint command that the mandate be vacated assuming, arguendo, that a subject so complex and elusive, and so' far beyond the competence of judges, would have warranted judicial action in the first instance.
We add a brief comment to underscore what we believe is implicit in the principal opinion, and indeed in Judge DAN-AHER’S dissent. The holding of the District Court is not affirmed as written but only as contrued by four members of this court. Even a cursory reading of the principal opinion reveals that as so construed, the mandate under review is essentially advisory to the former school board which has ceased to exist. As we see it the new school board is at liberty to make such use of it as it desires in much the same way as it may derive useful guidance from the Passow Report.
Several commentators have expressed views which undergird what Judge DAN-AHER has said as to the need for caution and restraint by judges when they are asked to enter areas so far beyond judicial competence as the subject of how to run a public school system. We have little difficulty taking judicial notice of the reality that most if not all of the problems dealt with in the District Court findings and opinion are, and have long been, much debated among school administrators and educators. There is lit-tie agreement on these matters, and events often lead experts to conclude that views once held have lost their validity. The commentary from various sources, including law reviews, tends to supply strong support for Judge DANAHER’S very sound view on the need for judicial restraint. The Harvard Law Review comments:
* * * [T]he limits upon what the judiciary can accomplish in an active role are an additional reason for circumspection, particularly in an area where the courts can offer no easy solutions.
* * * A court applying the Hobson doctrine must necessarily resolve disputed issues of educational policy by determining whether integration by race or class is more desirable; whether compensatory programs should have priority over integration; whether equalization of physical facilities is an efficient means of allocating available resources for the purpose of achieving overall equal opportunity. There is a serious danger that judicial prestige will be committed to ineffective solutions, and that expectations raised by Hobson-like decisions will be disappointed. Furthermore, judicial intervention risks lending unnecessary rigidity to treatment of the social problems involved by foreclosing a more flexible, experimental approach.
The Hobson doctrine can be criticized for its unclear basis in precedent, its potentially enormous scope, and its imposition of responsibilities which may strain the resources and endanger the prestige of the judiciary. * * *
Hobson v. Hansen; Judicial Supervision of the Color-Blind School Board, 81 Harvg.L.Rev. 1511, 1527, 1525 (1968) (footnote omitted).
The Stanford University Law Review had these comments:
It seems to have been the very magnitude of these problems that led the [District] court to search for remedies. In a brief paragraph entitled “Parting Word” the court, anticipating the adverse reaction its substantially unprecedented intervention has indeed provoked, set forth its apologia in these terms :
It is regrettable, of course, that in deciding this case this court must act in an area so alien to its expertise. It would be far better indeed for these great social and political problems to be resolved in the political arena by other branches of government. But these are social and political problems which seem *197at times to defy such resolution. In such situations, under our system, the judiciary must bear a hand and accept its responsibility to assist in the solution where constitutional rights hang in the balance.
* * * If at this time, however, such problems seem to “defy” social and political resolution, they are not for that reason more open to resolution by the courts. The responsibility lies first with those whose area of expertise comprehends feasible solutions.
Hobson v. Hansen: The De Facto Limits on Judicial Power, 20 Stan.L.Rev. 1249, 1267 (1968) (footnotes omitted).
After enumerating a number of objections to the Constitutional underpinnings of a Hobson v. Hansen-type opinion, Professor Kurland of the University of Chicago goes on to state:
And my third point of difficulty with the suggested constitutional doctrine of equality of educational opportunity is that the Supreme Court is the wrong forum for providing a solution. * * *
When we turn to the school desegregation eases, the problem most closely analogous to the one we are considering here, we find a more dismal picture of what must be acknowledged to be the Supreme Court’s failure rather than its success. The New York Times in its annual educational survey for 1968, thirteen and one-half years after Brown v. Board of Education, suggests that we are hardly any further along the line toward school desegregation than we were in 1954.
The Washington, D.C., example is too much with us. And everything that Judge Skelly Wright can do will not afford an integrated school system for the Nation’s capital. All that he can accomplish is to assure that the brighter students receive no better education within the system than the other students.
As I have suggested, it is perhaps because of the fact that local governmental units, especially those located in metropolitan areas, cannot or will not bring about racial desegregation that some are looking to the equal educational opportunity concept to break down the municipal boundaries in order to include suburban areas under the same umbrella as that which covers the slum schools. Absent a reversal of the Court’s decision in Pierce v. Society of Sisters, however, the es.cape route of private education will not be closed. And a reversal of that decision will arouse the opposition not only of the suburbanites but of organized religions as well.
Kurland, Equal Educational Opportunity: The Limits of Constitutional Jurisprudence Undefined, 35 U.Chi.L. Rev. 583, 592, 594, 595 (1968) (footnotes omitted).
This court — and courts generally— would do well to heed these sobering observations.
19.7 Excerpts from Subrin et al. on Finality and Preclusion 19.7 Excerpts from Subrin et al. on Finality and Preclusion
With this reading, we start a new module on a set of doctrines called "preclusion." Preclusion comes in two flavors.
1) Claim preclusion: This doctrine prevents a litigant who had an obligation to assert a theory of relief in lawsuit #1 that has gone to judgment in the trial court from asserting that theory of relief in a subsequent lawsuit, lawsuit #2. Ordinarily, the "obligation" arises from the fact that the litigant has asserted a theory of relief in lawsuit #1 related in some way (e.g., stemming from the same transaction or occurrence) to what they would like to assert in lawsuit #2. Some refer to claim preclusion as "res judicata," but avoid this term because it is sometimes used to refer to both claim and issue preclusion jointly. Note that claim preclusion applies regardless of whether the litigant prevailed or lost in lawsuit #1.
2) Issue preclusion: This doctrine prevents a litigant who has litigated and lost on an issue (an "issue" is much narrower than a claim or even an element of a cause of action), almost always a factual issue, in lawsuit #1 from relitigating that issue in lawsuit #2. Issue preclusion is sometimes called "estoppel" or "collateral estoppel."
To begin, read the following excerpts from Civil Procedure: Doctrine, Practice and Context by Subrin et al., found here (pdf). It introduces both doctrines and provides our primary teaching case for claim preclusion.
Note: In my view, the court's dictum in Gonzalez on the "claim" element of claim preclusion is incorrect. See if you can figure out why.
Finally, to invoke claim preclusion, a litigant must demonstrate the following elements
***** Same "claim"
***** Same party or in privity
***** A judgment that is both (a) final, and (b) "on the merits"
***** Certain stealth elements that no one ever mentions
Note 1 on page 786 of Subrin et al. is optional.
The "Review Problem" on page 787 of Subrin et al. is optional.
Citation: Stephen Subrin, Martha Minow, Thomas Main, Mark Brodin, Civil Procedure: Doctrine, Practice, and Context, 765-69, 776-87, (3d ed. 2008).