TO: Joint Procedure Committee
FROM: Mike Hagburg
RE: Rule 7.1, N.D.R.Civ.P., Disclosure Statement;
Rule 12.3, N.D.R.Crim.P., Disclosure Statement;
Rule 26.1, N.D.R.App.P., Corporate Disclosure Statement
Fed.R.Civ.P. 7.1 went into effect December 1, 2002. Justice Maring has suggested that the Committee consider whether to adopt a similar rule in North Dakota. A draft N.D.R.Civ.P. 7.1 is included with the meeting materials
Fed.R.Civ.P. 7.1 requires that corporations file a "disclosure statement" whenever they initially appear as a party in a federal court action. The disclosure statement must identify "any parent corporation and any publicly held corporation that owns 10% or more" of the stock of the corporate party filing the statement.
According to the Advisory Committee Notes, Fed.R.Civ.P. 7.1's disclosure statement requirement is intended to help judges identify potential conflicts of interest and to support properly informed disqualification decisions.
The new Fed.R.App.P. 26.1 and Fed.R.Crim.P. 12.4 impose nearly identical disclosure requirements. If the Committee chooses to adopt the Fed.R.Civ.P. 7.1 requirements, it may wish to consider adoption of the parallel appellate and criminal requirements. A draft N.D.R.App.P. 26.1 and N.D.R.Crim.P. 12.3 are included with the meeting materials for the Committee's consideration.