Federal Circuits, 1st Cir. (May 29, 1998)
Docket number: 97-2098
Permanent Link:
http://vlex.com/vid/william-tell-trustees-dartmouth-college-36154833
Id. vLex: VLEX-36154833
Click here to download this article in graphic format (Acrobat Reader)

U.S. Court of Appeals for the 1st Cir. - B. Fernandez and Hnos. v. Kellogg USA, Inc. (1st Cir. 2006)
U.S. Court of Appeals for the 1st Cir. - Picciotto v. Zabin (1st Cir. 2008)
U.S. Court of Appeals for the 1st Cir. - US v. San Juan Bay Marina (1st Cir. 2001)
U.S. Court of Appeals for the 1st Cir. - Picciotto v. Continental Casualty (1st Cir. 2008)
U.S. Court of Appeals for the 1st Cir. - Zabin v. Picciotto (1st Cir. 2008)
U.S. Court of Appeals for the 1st Cir. - US v. Morin (1st Cir. 2008)
U.S. Court of Appeals for the 1st Cir. - Salem Suede, Inc. v. Picciotti (1st Cir. 2008)
W. Wright Danenbarger with whom Thomas W. Aylesworth and Wiggin & Nourie, P.A. were on brief, for appellants.
Sean M. Gorman, Associate College Counsel, Dartmouth College, for appellee.Before TORRUELLA, Chief Judge, BOUDIN and LYNCH, Circuit Judges.BOUDIN, Circuit Judge.This suit was brought in the federal district court by William Tell and six other alumni of Dartmouth College against the Trustees of Dartmouth College (the corporate name of Dartmouth College). Appellants claimed to represent Dartmouth's alumni as a class and challenged certain changes in the arrangements for the election of trustees. The district court dismissed the case for lack of an indispensable party, and this appeal followed.Because the district court did not reach the merits, a condensed version of the dispute will suffice. Under an 1891 understanding between Dartmouth and its alumni--which appellants claim to have been a contract--the alumni effectively choose a certain number of the trustees; the Dartmouth College Alumni Association, an unincorporated association comprising all Dartmouth alumni, conducts an election if there is any contest among nominees. Prior to 1990, this process was used to fill both a trustee's initial term and any subsequent terms.In or about 1990, Dartmouth's Board of Trustees and the Alumni Association modified this arrangement in one respect: it was agreed that the Board of Trustees would have the power to reseat a trustee, originally chosen by the alumni, for an additional term without obtaining the alumni's further approval. The Alumni Association amended its constitution in September 1990 to reflect this change. Some of the alumni, of whom the appellants are examples, fiercely oppose the change as a surrender of the alumni's power.Appellants brought suit in state court, arguing that the change in the Alumni Association's constitution was unlawful. The case was dismissed, and the appeal was declined by the New Hampshire Supreme Court. Appellants then brought the present suit against the Trustees in federal district court. The suit alleges that the Board of Trustees violated its fiduciary duties and its contractual obligations under the 1891 agreement by modifying alumni rights as to the election of trustees. There were additional claims of breach of fiduciary duty largely ancillary to the main challenge.On motion by the Board of Trustees, the district court dismissed the case, without prejudice, under Fed.R.Civ.P. 19. It held that the Alumni Association was a necessary party under Rule 19(a); that it could not be joined without undermining diversity (the original basis for federal jurisdiction); and that without the Alumni Association, the action could not proceed "in equity and good conscience ... among the parties before [the court]" and should therefore be dismissed, "the absent person being thus regarded as indispensable." Fed.R.Civ.P. 19(b).There is apparently some difference among the circuits as to standard of review of decisions as to necessary joinder under Rule 19(a). Compare, e.g., Keweenaw Bay Indian Community v. Michigan, 11 F.3d 1341, 1346 (6th Cir.1993), with Hellebust v. Brownback, 42 F.3d 1331, 1335 (10th Cir.1994). Normally, abstract issues of law are reviewed de novo, and judicial findings of fact for clear error. See Sacramona v. Bridgestone/Firestone, Inc., 106 F.3d 444, 446 (1st Cir.1997). The dispute, if any, is usually about the extent to which the reviewing court should defer to the district judge's application of a general standard ("prejudice," "equity") to specific facts. Strictly speaking, this is an issue of law, but one where the appeals courts often give the trial judge latitude,1 but not always. See, e.g., Ornelas v. United States,Try vLex for FREE for 3 days
Access legal information from United States including:
Try vLex without any commitment for 3 days and see why you need it.
3
days of Free Access