Subject Matter Jurisdiction Flashcards
Introduction to Jurisdiction
- Subject Matter Jurisdiction - power of the court to decide this kind of case
- Personal Jurisdiction - power of the court to decide the rights and liabilities of this defendant
- Venue - determining the appropriateness of deciding the case in a particular court which has SMJ and PJ over the D
Subject Matter Jurisdiction (SMJ)
1. General
- Issue - does this court have the power to decide this kind of case?
- Federal courts are courts of limited SMJ
- State courts are courts of unlimited SMJ
Exam Tip - for MBE, assume state courts have jurisdiction over any kind of case unless you are provided with a stuate that specifically says otherwise
2. Pleading SMJ
- basis for SMJ must be affirmatively pleaded in every case (must tell court why it has juris)
- if challenged, them just be proven
3. Waiver - no waiver of lack of SMJ
- canot be waived by failing to ojbect or by affirmative consent
4. Objection to SMJ
- lack of SMJ can be raised by any party at any time including by the P
- can be brought for the first time on appeal
5. Major Categories of Federal SMJ
- Federal Question Jurisdiction
- Diversity Jurisdiction
SMJ - Federal Question Jurisdiction (FQ)
1. Basis
- exists for a claim that arises under federal law
2. Well-Pleaded Complaint
- P claims must be based on federal law - look to face of the complaint
- presence of a federal defense does not matter
- Louisville v. Mottley
- Issue - is there federal question jurisdiction?
- Answer - no, claim is for specific performance though federal law prohibited performance
3. Concurrent/Exlusive JX - state and federal courts have concurent JX of FQ claims, except when Congress expressly provides that JX of the federal courts is exclusive
4. Scope
- Express - FQ exists if cause of action (c/a) in question is expressly created by federal law and federal law provides the underlying right
- Implied - FQ likely to be faund if right is created by federal law and c/a can be fairly impplied and was intended by congress
- Not Express - complaint must involve real and substantial issue of federal law and its determination must depond on a resolution of federal issue
5. Amount in Controversy - no amount exists
SMJ - Diversity Jurisdiction - 1. Basis
1. Basis
- Cases between (citizens of different states) (citizens of a state and a foreign country) if the amount in controversy exceeds $75,000, exclusive of interest and costts
- Exceptions: probate and domestic relations actions cannot be brought in federal court under DJ
SMJ - Diversity Jurisdiction - 2. Complete Diversity
2. Complete Diversity
a. General Rule
- Rule - diversity statute requires complete diversity meaning every citizenship represented on the P’s side of the case must be different than every citizenship on the D’s side
- does NOT mean every P must be diverse from every other P or that the D must be diverse from every other D
- D must only be complete between the P’s and D’s
b. Minimal Diversity -
- Rule - any one P is diverse from any one D if one of the following circumstances apply:
- federal interpleader act
- class actions worth more than $5million
- and interstate mass tort (e.g, airline crash)
- provided by a few statutes
c. Time for Determination of Diversity
- must exist when the complaint is filed
- does not matter that diversity did not exist when the cause of action arose
- does not matter that diversity no longer existed when the case came to trial
SMJ - Diversity Jurisdiction - 3. Citizenship of Parties
3. Citizenship of Parties
a. Individuals
- Rule - citizen of state/country where domiciled and domicile permanent residence person is present and intends to reside for an indefinite period
- Can only have 1 domicile at a time
b. Aliens
- Rule - DJ exists from controversies between a citizen of a state and a citizen of a foreign country
c. Representative Parties
- Rule - generally, the citizenship of the representative party controls
- Exception - for the legal respresntation of a decedent’s estate (e.g., executor), infant, or incompetent, the citizenship of the representted party controls
d.. Class Actions
- Rule - citizenship of the named parties counts
- classmembers not named may join without regard to citizenship
e. Corporations
- Rule - citizen of:
- the state, states, or countries in which it is incorporated and
- the state or country of its principal place of business (i.e., nerve center, where its executive offices are located)
- when dealing with a corporation, be sure to consider every state where the corpration has citizenship
f. Partnerships and Unincorporated Associations
- Rule - citizen of every state of which its members are citizens
- applies to unions, trade associations, partnerships, and limited partnerships
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SMJ - Diversity Jurisdiction - 4. Devices to Create or Destroy Diversity
4. Devices to Create or Destroy Diversity
- Moving - permitted tso long as the person is really changing their domicile, not just a shame to affect diversity
- Assignment of a Claim - permitted so long as the assignment is real and not collusive
- partial assignment of a cliam for debt collection does NOT affect citizenship if the assignor retains an interest in the claim; assignor’s citizenship will count for purposes of diversity
SMJ - Diversity Jurisdiction - 5. Amount in Controversy (AIC)
5. Amount in Controversy (AIC)
a. Rule
- Rule - must exceed $75,000, exclusive of interest and costs
- only relevant in a diversity case - if not diversity, then no AIC
- General Rule - any good faith allegation will suffice
- case will only be dismissed for failure to meet AIC when it appears to a legal certainty that recover in excess of $75,000 cannot be had
b. Aggregation
- If 1 P v 1 D - P can aggregate all his claims against the D to meet the AIC req
- If 1 P v Multi D - P generally cannot add up all his claims; claim against each D must meet AIC
-
If Multi P
- Rule - each P must mee thte AIC req
- Supplemental Jurisdiction - when 1 P has a claim exceeding AIC, the claims of the other P can be heard regardless of the amount if all of the claims 1) arise out of the same transaction or occurance and 2) complete diversity is maintained
c. Counterclaims (often tested)
- Issue - does a counterclaim in a diversity action have to meet AIC?
- Rule:
- if counterclaim is compulsory, then no
- if counterclaim is permissive, then yes
Supplemental JX- 1. In General
Supplemental Jurisdiction - 1. In General
- Rule - court may hear additonal claims over which it would not independently have jurisidciton if 1) all claims must be part of the same case or controversy and 2) the federal court has SMJ over the case
- Same Case or Controversy - if they arise out of a common nucleus of operative facts (e.g., arise out of the same transaction or occurance)
- Embodied in 28 USC 1367
Supplemental JX- 2. Federal Question
Supplemental Jurisdiction - 2. Federal Question
- Issue - if federal court can hear state-law claims
- Supplemental jurisdiction = power of the federal court;
- The exercise of that power is discretionary
Example 4: Federal and state law claims against Defendant A. If the two claims share a common nucleus of operative fact, the federal court may hear the pendent state law claim under supplemental jurisdiction.
Example 5: Federal claim against Defendant A and a related state claim against Defendant B. The federal court may hear both the federal claim against A and the state law claim against B if the claims arise out of the same transaction or occurrence. Called “pendent party” jurisdiction.
Supplemental JX- 3. Diversity Jurisdiction
Supplemental Jurisdiction - 3. Diversity Jurisdiction
a. Counterclaims
-
Rule - federal court sitting in divestiy has supplemental jurisdiction over a compulsory counterclaim
- Compulsory - one that arises out of the same transaction or occurrence as the main claim
- AIC? - can be heard even if it doesnt make the amount
- Permissive - can only be heard if it independently satisfies diversity jurisdiction (e.g., $75000)
b. Cross-Claims
- Rule - supplemental jurisdiction applies to cross claims by P v P or D v D if cross claim shares a common nucleus of operative fact with the primary claim
- Diversity? - does not matter that co P or co D are not diverse
- AIC? - does not matter if cross cliam is worth less than $75
c. Multiple P/Permissive Joinder
- If the claim of one diverse plaintiff against the defendant satisfies the jurisdictional amount, other diverse plaintiffs who have claims against the defendant sharing a common nucleus of operative fact (same transaction or occurrence) can also be heard even if their claims do NOT satisfy the jurisdictional minimum.
Example 6: Class action is brought with 5 representative parties who are all diverse from the defendant. One of the parties has a claim for more than $75,000; the claims of the other 4 are worth less. All the claims can be heard under supplemental jurisdiction.
Note - remember that there is a statute that allows federal SMJ over class actions wherin the total amount in controversy exceeds $5M so long as there is minimal diversity within on P and one D
d. Supplemental Jurisdiction NOT Permitted
- Note - for all of these claims, diversity action if complete diversity maintained, and the jursidctional amount be met
- SJ does not extend to:
- claims by P against impleded D under rule 14
- claims by P against additional D joined as necessary parties under rules 19 or 20
- claims by intervenors under rule 24
- claims by P joined involuntarily under rule 19
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Supplemental JX- 4. Summary
Supplemental Jurisdiction - 4. Summary
Rule - Supplemental jurisdiciton works for:
- federal question cases across the board
- diversity cases for:
- compulsory counterclaims
- cross claims
- for voluntary joinder of plaintiffs when there is complete diversity with all named plaintiffs, when one of them has a claim exceeding $75,000, and all claims share a common nucleus of operative fact.
Supplemental jurisdiction estalbishes the cour’s power to hear additionalclaims but is discretionary
Removal JX - 1. Terminology
Removal JX - 1. Terminology
- General Principle - procedure where case begun in state court is removed to federal court
- Removal moves case from state court to federal court
- Transfer moves case from federal court to another federal court
- No procedure for removal of a case from federal court to state court
- federal court can abstain from hearing the case
Removal JX - 2. General Rule
Removal JX - 2. General Rule
- Rule - removal is proper only if the case could have been brought originally in federal court having SM
- Note - only D may remove
- All D’s must ocnsent to removal
- Each D has 30 days after service to initiate removal
Removal JX - 3. Federal Question
Removal JX - 3. Federal Question
- Reminder - FQ jurisdiction exists only when the P claim was based on federal law (test is well pleaded complaint rule)
-
Rule - removal - if the well pleaded complaint discloses that the P has a federal claim, then the D may remove to federal court
- If P claim arises under state law, D may NOT remove even though D has a federal defense
