Legal Memorandum: Necessary partys are determined by those whom have a substantial interest in the matter

Issue: Under Illinois law, how is the determination of a "necessary party" made?

A necessary party is "an individual or entity having a present, substantial interest in the matter being litigated, and in whose absence a complete resolution of a matter in controversy cannot be achieved without affecting that interest." Cameron v. Bartels, 214 Ill.App.3d 69, 75-76 (1991). The interest of the necessary party must be "present and substantial rather than a mere expectance or future contingency." Borrowman v. Howland, 119 Ill.App.3d 493, 499 (1983). A party is necessary if its participation "is required to (1) protect its interest in the subject matter of the controversy which would be materially affected by a judgment entered in its absence; (2) reach a decision protecting the interests of the parties already before the court; or (3) allow the court to completely resolve the controversy." Zurich Insurance Co. v. Baxter International, Inc., 275 Ill.App.3d 30, 37 (1995).