Opinion ID: 65811
Heading Depth: 3
Heading Rank: 3

Heading: Prejudice to Texas if Its Motion To Intervene Is Denied.

Text: By intervening, Texas is attempting to protect its interest in the Texas unclaimed funds involved in the cy pres settlement. To determine whether Texas would be prejudiced by being denied intervention, we examine what opportunities it would have to claim those funds if it cannot intervene. If the motion is denied, Texas's opportunity to appeal would be quite limited. Non-parties are generally not permitted to appeal a ruling in which they did not participate. See Marino v. Ortiz, 484 U.S. 301, 304, 108 S.Ct. 586, 98 L.Ed.2d 629 (1988). Texas could have tried to appeal as a non-party under Castillo v. Cameron County, Texas, 238 F.3d 339, 349-51 (5th Cir.2001), but it would have had to rely on a vague balancing test to overcome the general presumption against non-party appeals. Moving to intervene as of right was a much more certain way of proceeding. Texas also might have pursued its interest by suing the settlement administrator in state court to compel delivery of the unclaimed funds. See TEX. PROP.CODE § 74.709 (Vernon 2007). If Texas won such a suit, however, it would create a legal morass. The settlement administrator would be presented with conflicting federal and state orders regarding the same property. Texas might be unable to enforce its state court order. Intervening in the existing federal lawsuit is the most efficient, and most certain, way for Texas to pursue its claim. Denying that intervention would certainly cause prejudice to Texas.