Barbara and Judi entered into a contract with Linda, which provided that they open a jewelry store in Fullerton. Linda is obligated to supply all jewelry in accordance with a specified price list. Linda also agreed that she would not personally compete or supply another retail merchant, either directly or indirectly, within the City of Fullerton.
Linda, in order to give the necessary credit to Barbara and Judi, required that Joanne act as a guarantor. Barbara and Judi have been very successful, making substantial profits each month.
After one year’s time, Barbara, who also has an additional job as a legal secretary, requires an extended vacation. Judi is fully in agreement. While Barbara is on her vacation, Linda sells jewelry to three additional retailers, all of whom, in the space of one week, open competitive shops in Fullerton. Linda’s agreement with the new retailers is to provide inventory to the new stores at a substantially reduced cost, permitting them to sell retail at rates far below Judi and Barbara’s cost. In one month’s time, Judi closes the business and, unknown to Barbara, files suit in Federal District Court, alleging breach of contract on Linda’s part and further alleging that she only has been damaged. Barbara returns from her extended vacation one month after the suit is filed and files a motion to intervene under Rule 24. Linda files a motion under Rule 19, alleging that Barbara should be joined as a party. Joanne, who lives in Nevada, learns of the lawsuit and asks her attorney to file a motion to intervene under Rule 24. Linda, in the requisite time, files her answer and files a motion under Rule 14 to implead the Rhodesian Diamond Company, her supplier and with whom she has a contract which required that she increase her sales and open new offices or lose her contract.
Assume proper jurisdiction of the subject matter, parties and venue. Discuss all civil procedure issues and give proper argument concerning motions made by Linda, Joanne and Barbara.
Discuss your answers in a very full narrative IRAC essay with much detail.
