TASK DEFINITION: In this task, you will be shown a prompt from a judicial decision and multiple holding statements derived from citations following text in a legal decision.  Holdings represent the governing legal rule when the law is applied to a particular set of facts. There are five answer choices for each citing text. The correct answer is the holding statement that corresponds to the citing text. The four incorrect answers are other holding statements. You should find the correct option. There is a <HOLDING> token in the position of the citing text prompt where the holding statement was extracted.
PROBLEM: second and third elements under Fed.R.Civ.P. 24(a)(2), the existence of a sufficient interest, and whether disposition of that interest would effectively impede the putative intervenors’ ability to protect that interest. Among the interests that satisfy these criteria are injury to reputation, see Penthouse Int'l Ltd. v. Playboy Enterprises, Inc., 663 F.2d 371, 373, 392 (2d Cir.1981), need to protect the attorney-client privilege, see In re Katz (Jamil v. United States), 623 F.2d 122 (2d Cir.1980), and need to protect the attorney work-product privilege. See United States v. AT & T, 642 F.2d 1285, 1290-92 (D.C.Cir.1980), citing, Reisman v. Caplin, 375 U.S. 440, 445, 84 S.Ct. 508, 511-12, 11 L.Ed.2d 459 (1964); see also In re Grand Jury Proceedings, 735 F.2d 1330, 1331 (11th Cir.1984) (<HOLDING>); In re Grand Jury Proceedings, 604 F.2d 798, 
 Holding statements: (A) recognizing that a district court should allow intervention by a client in the first instance as soon as the attorneyclient privilege issue is raised (B) holding that the inadvertent disclosure of a privileged document does not waive the attorneyclient privilege if attorney took all reasonable steps to avoid disclosure and asserted the privilege as soon as the disclosure became known (C) holding that where an issue is raised in the district court but raised late and the district court declines to deem the issue waived the issue may be raised on appeal (D) recognizing intervention to assert both the attorneyclient and work product privileges (E) holding that the information is not protected by attorneyclient privilege

SOLUTION: (A)

PROBLEM: the sophisticated user defense, a supplier has no duty to warn the ultimate user if it has reason to believe that the user will realize its dangerous condition. Gray v. Badger Mining Corp., 676 N.W.2d 268, 276 (Minn.2004); see also Ritchie v. Glidden, 242 F.3d 713, 724 (7th Cir.2001) (stating, under Indiana law, that the sophisticated purchaser defense to a failure-to-warn claim brought under negligence or strict liability theories provides that product suppliers do not have a duty to warn employees or customers of knowledgeable industrial purchasers as to product-related hazards). In addition to limiting a supplier’s duty, the “sophisticated user” concept also affects the element of proximate cause. Crook v. Kaneb Pipe Line Operating P’ship, L.P., 231 F.3d 1098, 1102 (8th Cir.2000) (<HOLDING>); Strong, 667 F.2d at 688 (“Even if [the 
 Holding statements: (A) holding that negligence must be the proximate cause of injury (B) holding in a negligence action that the air traffic controllers failure to warn of an impending danger cannot be the proximate cause of an injury after the pilot himself discovered its presence appreciated the danger and decided to fly ahead into it (C) holding that use of tangible property must be proximate cause of injury and that property does not cause injury if it does no more than furnish the condition that makes the injury possible (D) holding that if a user actually knows of the danger a failure to warn cannot be a proximate cause of the injury (E) holding that a physicians negligence need only be a proximate cause not the proximate cause of plaintiffs injury

SOLUTION: (D)

PROBLEM: dissent calls attention to the proper role which Congress should be filling (but has failed to fill) in providing the proper guidelines for jurisdictional determinations in the unincorporated, non-trust entity context. See Carden, 494 U.S. at 198-199, 110 S.Ct. at 1022-23 (O’Connor, J., dissenting). It is obvious that clearer, more appropriate guidelines must be dictated for diversity jurisdiction determinations in contexts such as this, either by Congress or by the Supreme Court. The issue of how to categorize Lloyd’s syndicates for jurisdictional purposes has not yet been addressed by the Third Circuit. The Sixth Circuit, on the other hand, has addressed the issue of citizenship of a Lloyd’s syndicate. See Certain Interested Underwriters v. Layne, 26 F.3d 39 (6th Cir. 1994) (<HOLDING>). While the decision of the Sixth Circuit is 
 Holding statements: (A) holding that citizenship of active underwriters and names with lloyds london had to be considered for purposes of diversity jurisdiction (B) holding that a principal is bound by a contract entered into by the principals agent on her behalf if the agent had authority to bind the principal (C) holding that by applying the real party in interest test in conjunction with tennessees law concerning suits involving principal and agent only the underwriters should be included for the purposes of diversity jurisdiction (D) recognizing that a narrow reading of missouri would suggest that the state is the real party in interest for diversity purposes only when the relief sought inures to the benefit of the state alone but noting that cases have only required a real interest pecuniary or otherwise in the outcome of the litigation (E) holding that both agent and principal will be liable when the agent acts within the scope of his employment but for his own purposes

SOLUTION:
(C)