CIVIL PROCEDURE - Venue and Choice of Law Flashcards
What is the THREE PART BALANCING TEST a court will use if it is unclear whether the state law is substantive or procedural?
1) Is state law outcome determinative? If the state law substantially determines the outcome of the litigation, it is substantive law and must be applied by a federal court sitting in diversity jurisdiction.
2) Balance state interest against federal interest in application of particular rule: does either court system have a strong preference that its rule be applied?
3) Avoid forum shopping: courts seek to avoid forum shopping, so a judge will consider whether application of a particular rule will promote forum shopping (i.e. influence primary conduct of plaintiffs).
What are the public factors considered for “interests of justice”?
4:
1. court congestion
2. local interest - the local interest in having local controversies decided at home
3. forum familiarity with substantive law
4. unfairness to forum - unfairness of burdening citizens with jury duty for case unrelated to forum
When can a court transfer venue even if the original venue is proper?
If the original venue is proper, the court may nevertheless transfer the case (assuming there is another federal district court with proper venue) based on:
Convenience of the Parties
AND
Interests of Justice
What are the possibilities when the case involves state law claims in addition to a federal claim?
Original or Supplemental Jurisdiction – if the state law claim falls within the original jurisdiction of the federal court (i.e. diversity jurisdiction) or the state law claim falls within the supplemental jurisdiction of the federal court, both claims come up to the federal court and both claims remain in the federal court.
State Law Claim Does Not Fall Within Original or Supplemental Jurisdiction – if the state law claim does not fall within the jurisdiction of the federal court (i.e. original or supplemental) or the claim has been declared non-removal (e.g. FELA actions are not removal by statute), the federal judge must severe the state law claim and remand to the state court.
What if there is no district in which the action may otherwise be brought?
If there is no district in which the action may otherwise be brought, diversity and federal question cases differ on the proper venue requirement.
Diversity = Defendant Subject to Personal Jurisdiction – a judicial district in which any defendant is subject to personal jurisdiction at the time the action is commenced.
Federal Question = Where Defendant Can Be Found – a judicial district in which any defendant may be found.
What are the requirements for a motion to remand?
Procedural Defect = Within 30 Days – a motion to remand the case on the basis of any defect other than lack of subject matter jurisdiction must be made within 30 days after defendant files notice of removal.
Lack of Subject Matter Jurisdiction = Anytime – if at any time before final judgment it appears that the federal district court lacks subject matter jurisdiction, the case shall be remanded.
No Appeal – a defendant cannot appeal an order to remand.
Where is venue proper if all defendants reside in different districts within the same state?
If there are multiple defendants and they reside in different districts within the same state, then venue is proper in any district where one of the defendants resides.
What is the presumption for venue?
Presumption is that the plaintiff’s choice of venue holds; therefore transfer is the exception, not the rule.
Who can remove?
ONLY defendants can remove an action to federal court.
Removal allows a defendant to veto the plaintiff’s choice of forum (i.e. state court).
What is the general test for removal?
A case may be removed if the case could have originally be brought/filed in federal court (i.e. federal question or diversity).
Can a defendant waive subject matter jurisdiction, personal jurisdiction, notice, removal, or venue? If so, how?
Personal jurisdiction, service of process, notice, venue, and removal can all be waived (i.e. by nonassertion, inaction, by proceeding to defend the case, etc.).
Subject matter jurisdiction, on the other hand, CANNOT be waived (i.e. can be raised in the SCOTUS for the first time).
Are the FRCP substantive or procedural?
If a FRCP is arguably procedural, it is valid and it will be applied.
Note, however, that no FRCP has ever been found to be invalid under the Erie doctrine.
What happens if there is a federal law on point in direct conflict with the state law?
Under the Supremacy Clause of the US Constitution, if there is a federal law on point that is in direct conflict with the state law, the federal court MUST APPLY the federal law if it is valid.
When venue is transferred, what choice of law provisions will apply?
When venue is transferred, the choice of law provisions of the transferor court will apply. Change of court, not a change of law.
Where are cases removed?
Defendant can only remove the case to the federal district court that geographically embraces the state court (e.g. Supreme Court of NY would be to the SDNY, Brooklyn State Court would be to EDNY)
