Subject Matter Jurisdiction: Intro and Diversity

Question 1

In general, what are the three ways to get federal SMJ?

Answer 1

1. Diversity
2. Federal Q
3. Supplemental Jurisdiction

Question 2

What are the two requirements for diversity jurisdiction?

Answer 2

1. COMPLETE diversity; and

2. Amount in controversy must exceed $75,000

Question 3

For the purposes of diversity jurisdiction, what is “complete diversity”?

Answer 3

No plaintiff may be a citizen of the same state as any defendant

Question 4

For the purposes of “diversity jurisdiction” and the requirement of “complete diversity” - is jdxn defeated if, after commencement of proceeding - a party becomes a citizen of the state of one of his opponents?

Answer 4

No.

Rule –> diversity must exist at time of commencement of action. What happens before or after is irrelevant

Question 5

With regards to determining citizenship for the purpose of diversity jurisdiction - what is the rule for people?

for corporation?

for unincorporated associations and LLCS?

Answer 5

Person –> permanent home where he intends to return. Children have the home of their parents;.

Corporation–>

1. every state where it is incorporated;
2. one state where it’s PPB is located

Unincorporated associations, Partnerships, LLC –>
-considered a citizen of each state in which any member is a citizen

Question 6

With regards to determining citizenship for the purpose of diversity jurisdiction - what is the rule for class actions?

Answer 6

Based on citizenship of named members of the class who are suing

Question 7

Will courts uphold sham to create diversity?

Answer 7

No - it will be declared that diversity jdxn does not exist

Question 8

With regards to diversity jdxn, and the amount in controversy - what is the gen rule w regards to what counts?

What is is determined by?

What is standard for dismissing claim on these grounds?

Answer 8

Includes –> actual amount, not interest, Atty fees (unless recoverable by contract or statute

Determined by –> P’s good faith allegation

Claim can be dismissed –> ONLY if there is NO legal possibility of recovering there required amount

Question 9

With regards to diversity jdxn, and the amount in controversy - what is the gen rule w regards to aggregation?

Answer 9

Can aggregate –>
1. P MAY aggregate all of her claims against single D
2. P MAY aggregate all of her claims against multiple D’s ONLY IF they are jointly and severally liable
NOTE –> cannot agg sep claims or concurrent liabilities
3. Multiple P’s MAY aggregate ONLY if they are trying to enforce a SINGLE TITLE or RIGHT in which they have a common or undivided interest

Question 10

With regards to diversity jdxn, and the amount in controversy - what is rule with regards to supplemental claims?

Answer 10

• claims that DO NOT meet the amount in controversy requirement MAY invoke supplemental jdxn IF they arise fro the “same nucleus of operative fact” as a claim that invoked diversity jdxn

NOTE –> supplemental jdxn CANNOT be used to overcome the complete jdxn requirement

Question 11

With regards to diversity jdxn, and the amount in controversy - can D’s counterclaim be combined w P’s claim to reach the min?

Also, do counterclaims need to meet the idxl amount?

Answer 11

No, they cannot be combined

NOTE:
“mandatory counterclaim” –> need not meet the jdxnl amount (bc court may grant supplemental jdxn)

HOWEVER –> a “permissive counterclaim” (one arising out of a completely unrelated transaction) must have an INDEPENDENT JURISDICTIONAL BASIS, and thus must meet the amount in controversy requirement

Question 12

With regards to diversity jdxn, and the amount in controversy requirement, what is the rule w regards to removal from state court ?

Answer 12

A person who claims $75K or less in state court, but is met w a counterclaim for more than 75K CANNOT remove to federal court, regardless of whether counterclaim is compulsory or permissive.

WHY –> bc only D’s can remove