Flashcards in Bar Prep - NY Federal Jurisdiction Deck (102)
What is subject matter jurisdiction?
Power over the case.
What are the two main types of cases that can be filed in federal court?
(1) Diversity of citizenship or
(2) Federal question
What are the two requirements of diversity and alienage cases?
(i) Case is either
(a) between "citizens of different states" (diversity) OR
(b) between a "citizen of a state and a citizen of a foreign country (alienage)
(ii) Amount in controversy exceeds $75,000
What is the complete diversity rule?
There is no diversity of citizenship jurisdiction if ANY PLAINTIFF is a citizen of the same state as ANY DEFENDANT.
P (Spain) sues D (Canada) in federal court, is this ok?
No alienage bc its not btwn citizen of a state and a alien.
No diversity of citizenship bc not btwn citizens of different states.
P (US citizen domiciled in France) sues D (NY) in federal court, is this ok?
No alienage bc P is not an alien.
No diversity of citizenship? No bc P is not a citizen of state.
What is the state of citizenship for a natural person?
United State of her domicile.
Can a person have more than one domicile at a time?
How do you establish a new domicile?
(1) Physical presence in the state AND
(2) The intent to make that your permanent home.
P (DC) sues D (NY). After filing, P becomes a citizen of NY - is this still diversity?
YES. Also, remember....
(i) Treat DC as a state
(ii) Test for diversity occurs when the case IS FILED.
What is the citizenship of a corporation?
(i) state or county where incorporated AND
(ii) State or country where has its principle place of business (PPB)
True or False: Corporations, unlike humans, can have two citizenships
What is a corporations principal place of business?
Where managers direct, coordinate and control corporate activities.
What is the rule regarding citizenship of unincorporated associations?
Use the citizenship of all members (that includes general and limited partners).
XYZ Partnership has partners who are citizens of NY, NJ, and PA --- the partnership citizenship = NY, NJ and PA.
How is the citizenship of decedents, minors or incompetents determined?
Citizenship of decedent, minors or incompetents governs, not their representatives.
In addition to the complete diversity rule (or alienage), P's good faith claim must exceed _____?
Value must come from claim itself (not interest/fees)
If P in a diversity claim actually recovers less than $75,000, jurisdiction is OK. But what might happen to P?
P may have to pay D's litigation costs.
What is aggregation?
When P must add two or more claims to meet the amount in controversy requirement.
Can a P aggregate two claims to meet the amount in controversy requirement?
YES -- we can aggregate the claims of one P vs. one D.
P sues D1 for $70,000 and D2 for $6,000 in the same case. OK?
NO - P cannot aggregate these claims.
What if P sues for an injunction to force D to remove a portion of D's house that encroaches on Ps property - how do we determine the value of the injunction?
Apply both analysis:
(a) P's Viewpoint --> Does this encorachment decrease value of Ps property by more than $75,000
(b) D's Viewpoint --> would is cost D more than $75,000 to comply with the injunction.
True or False: Federal courts will issue a divorce, alimony or child custody decree; they also will not probate a decedent's estate.
FALSE - Federal courts will not issue a divorce, alimony or child custody decree.
What are federal question cases?
Complaint must show a right or interest founded substantially on a federal law. The claim must "Arise under" federal law.
What is the well-pleaded complaint rule?
The determination of whether a well-pleaded complaint was federal -- ask whether the P is enforcing a FEDERAL RIGHT.
What is supplemental jurisdiction?
Works only after case is already in federal court.
Used for additional claims in that case and that claim does not meet diversity or FQ.
What is the test for supplemental jurisdiction?
Claim that we want to get into federal court must share a "Common nucleus of operative fact" with the claim that invoked federal subject matter jurisdiction.
When is the test for supplemental jurisdiction always met?
When the claim arises from the same transaction or occurrence as the underlying case.
What is the limitation regarding supplemental jurisdiction?
In a DIVERSITY case, the PLAINTIFF cannot use supplemental jurisdiction to overcome a lack of diversity.
So a non-federal, non-diversity claim can be heard in federal court if it meets "the test" UNLESS it is
(a) Asserted by a P
(b) In a diversity of citizenship (not FQ) case AND
(c) Is against a citizen of the same state as the P.
When can a D sued in state court be able to "remove" the case to federal court?
One way street - transfers a case ONLY from a state trial court to federal trial court.
When -- within 30 days AFTER SERVICE
What is the general rule regarding what kind of cases can be removed?
One that would meet the requirements for diversity of citizenship or federal question.
What are the two exceptions to removal that apply only to diversity cases (not FQ)?
(1) No removal if any D is a citizen of the forum (instate D)
(2) No removal more than 1 year after the case was filed in state court.
What is the procedure for removal?
D files notice of removal in federal court, stating grounds of removal, signed under rule 11, attach all documents served on D in state action, copy all to adverse parties, file copy of notice in state court.
What result if the removal was procedurally improper?
P moves to remand to state court, must do so within 30 days of removal.
True or False: D who files a permissive counterclaim in state court probably waives right to removal.
Filing a compulsory counterclaim in state court probably does not waive the right to remove.
What is the basic Erie Doctrine rule?
In diversity cases, the federal court must apply state substantive law.
What are the key steps of the Erie Doctrine analysis?
Step 1 --> Is there a federal law on point that directly conflicts with state law? (If so, apply federal law).
Step 2 --> If no federal law on point, ask is this issue one of the "easy ones?"
Step 3 -->If no federal law and not easy, must follow state law... based on 3 tests.
Under an Erie Doctrine analysis, what are the "easy ones?"
(a) Elements of a claim or defense
(b) Statute of limitations
(c) Rules for tolling statute of limitations
(d) Conflict (or choice) of law rules
These are easy because SCOTUS has declared them substantive.
What are three tests the court can turn to if the judge wants to ignore state law (and apply federal law under Erie)?
(1) Outcome Determinative - would applying or ignoring state rule affect outcome - if yes, probably substantive and should use state rule.
(2) Balance of Interests - does either fed. or state system have strong interest in having rule applied
(3) Avoid Forum Shopping - if fed. court ignores state law, would it cause parties to flock to fed. court? If so, should probably apply state law.
What is the basic idea regarding venue?
SMJ told use we can take case to federal court, VENUE tells us exactly which court.
What is the basic rule regarding venue?
P may lay venue in ANY DISTRICT WHERE:
(i) all Ds reside OR
(ii) a substantial part of claim arose.
Where does human D reside?
What is the general rule regarding the transfer of venue?
A case can only be transferred to another federal district court where the case "Could have been brought".
What is the exception to the general rule that transfer of venue can only occur to other courts where "cause could have been brought?"
All parties consent AND court finds cause for transfer.
What factors does court look to when determining whether to transfer venue?
Public - what law applies, what community jury should be drawn from
Private - convenience
If case is transferred to different when, what choice of law applies?
Law of state where case was ORIGINALLY FILED.
What is process?
Summons + complaint.
In federal court civil cases, when do you have to serve process?
120 days after filing.
Who may serve process?
Any non-party who is at least 18
What should P considered when determining what parties to sue under joinder?
(1) Did Ds arise from the same transaction or occurrence?
(2) Does suit raise at least 1 common question?
When are absentee parties (left out of original complaint) necessary or required parties?
(1) W/o absentee, cannot accord complete relief
(2) Absentee interest will be harmed if not joined
(3) Absentee claims interest which subjects party to possible multiple obligations
Are joint tortfeasors necessary?
No - never
B holds 1000 shares of stock in corporation in his own name. S claims that he and B agreed to own the stock jointly and that S paid half.
S sues Corp. to have B's shares canceled and reissued in the joint names - is B necessary?
Most obviously without B joining - B's interest will be harmed bc if S wins, B's stock will be canceled.
What does court considered when determining whether necessary party can be joined?
(1) there is personal jurisdiction over absentee and
(2) He can join without messing up diversity.
If absentee cannot be joined, what are court's options?
(1) Proceed w/o absentee or
(2) Dismiss the case.
When facing absentee joinder issue, and absentee cannot be joined, how does court determine whether to proceed?
Is there alternative forum, real likelihood of harm, can court do something to shape proceeding to avoid harm to non-joined party.
What is a counterclaim?
Claim against opposing party.
What is a compulsory counterclaim?
One that arises from same transaction or occurrence as Ps claim?
True or False: Compulsory counterclaim must be filed with your answer in pending case.
True, or else its waived.
What is a permissive counterclaim?
Does not arise from the same transaction or occurrence as Ps claim. Does not have to be asserted in the pending case.
What is the initial rule for every claim asserted in federal court?
WE MUST ASSESS whether there is federal SMJ.
Start with diversity/alienage and federal question. If none works, try supplemental jurisdiction.
P (NY) sues D (NJ) on a state law claim for $80,000. D files a compulsory counterclaim against P for $45,000. The compulsory counterclaim does not invoke diversity bc it does not exceed $75,000.
Can the counterclaim invoke supplemental jurisdiction?
(1) It meets the test, transaction or occurrence and
(2) Limitations does not apply.
What is a crossclaim?
This is a claim against a co-party. It MUST arise from the same transaction or occurrence as the the underlying action.
If you have a crossclaim, must you file it in the pending case?
No, these are never compulsory.
What is the key to remember about joinder?
If claim starts with "C" (Counterclaim, crossclaim) it is between existing parties.
If claim starts with "I" (impleader, intervention) someone new is joining the case.
What is impleader (3P Practice)?
A defending party joins 3PD.
Why? Because 3PD is or might be liable to the defending party for the claim against the defending party. (Usually indemnity or contribution).
What is the timing regarding impleader?
You have right to implead within 14 days of serving your answer, after that, you need court permission to implead.
What is intervention?
Absentee wants to join a pending suit.
What is interpleader?
One holding money or property wants to force all potential claimants into a single case to avoid multiple litigation and the threat of inconsistent results.
What is the rule for determining diversity of citizenship in an interpleader?
The stakeholder (person holding property) must be diverse from every claimant?
What is a class action suit generally?
Representative sues on behalf of a group?
What are the initial requirements of a class action?
(1) Too numerous for practicable joinder
(2) Law/Fact in common to class
(3) Rep's claims/defenses typical to class AND
(4) Rep is adequate
What are the three type of class actions?
(ii) Injunction or declaratory judgment
What is class action for prejudice?
Class treatment is necessary to avoid harm either to class members or to the party opposing the class.
What is class action for injunction or declaratory judgment?
(Not damages) sought because class members were treated alike by the other party.
Ex - employment discrimination
What is class action for damages?
(A) Common question PREDOMINATE over individual questions AND
(B) class action is superior method for resolving the dispute.
Ex -- mass tort.
What is the notice requirement for class action for DAMAGES (#3)?
Court must give individual notice (usually by mail) to all reasonably identifiable members.
What type of information is required in the mandatory notice for class action for damages?
That P can OPT OUT, P bound by judgment if they do not opt out, and P can enter a separate appearance through counsel.
Who pays for the notice for class action-damages?
Who is bound by the class action judgment?
All members except those who opt out of type 3 class actions (class action for damages).
In class action, whose citizenship is relevant?
The representative must be diverse from all Ds.
What is the rule regarding jury trial in federal court?
7th Am preserves right to jury trial in actions AT LAW, not equity.
What if case is mixed question of equity and law? Jury decides facts underlying law claim BUT NOT equity claim.
Does the 7th amendment apply to state courts?
No - only in federal civil cases.
What is required under the demand requirement for jury trial?
You must demand jury trial in writing no later than 14 days after service of the last pleading raising a jury-triable issue.
What are the limitations on peremptory strikes of potential jurors?
When selecting the jury (voir dire process) each side has unlimited strikes of potential jurors for cause (Ex bias, related to party).
Peremptory challenges are limited to THREE and must be used in race/gender neutral way.
What is a motion for judgment as a matter of law?
Exceptional order which takes case away from jury.
When is JMOL raised?
After the other side has been heard at trial.
D -- can move at close of Ps evidence and again a close of all evidence.
P -- can move at close of all evidence.
What is the standard for JMOL?
Reasonable people could not disagree on the result.
What is a renewed motion for judgment as a matter of law?
RJMOL - situation = judge did not grant JMOL and thus let the jury decide the facts, jury returns a verdict for one party and losing party files renewed motion for judgment as matter of law.
Must move NLT 28 days after entry of the judgment.
What is a prerequisite to making the renewed motion for judgment as a matter of law?
Must have moved for JMOL at trial.
When is a motion for new trial appropriate?
Jury reaches verdict, court enters judgment, party can move for new trial within 28 days entry of judgment.
Judge standard of review -- looking for any error that requires the case to be returned.
What is the result of a successful renewed judgement as a matter of law motion?
Takes judgment away from one party and gives it back to the other.
What are the ways a defending party may respond to complaint?
By motion or by answer NLT 21 days after service of process.
Answer = pleading
Motions are NOT pleadings
What defenses (whether raised by answer or by motion) must be put in response OR THEY ARE WAIVED?
Lack personal jurisdiction
Insufficient service of process
What defenses may be raised at anytime throughout trial?
Failure to join indispensable party
Which defense is never waived and can be raised anytime during case?
Lack of subject matter jurisdiction.
What is the modern due process standard on personal jurisdiction?
Contact and fairness
D must have minimum contacts with forum such that the exercise pf personal jurisdiction over him is fair and reasonable.
What are the types of SMJ available to federal courts?
(1) Diversity jurisdiction OR
(2) Federal question
What is required under diversity jurisdiction?
(1) complete diversity and
(2) claim in excess of $75,000
What is the rule regarding diversity?
All Ds must be of diverse state citizenship from all Ps = "complete diversity"
When must complete diversity exist for SMJ in federal court?
When action is commenced.
Exception --> for interpleader