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Flashcards in MBE - Federal Jurisdiction & Procedure Deck (16)

What is diversity jurisdiction?

Dist. courts have jurisidiction over case when (i) parties are from different states/foreign state, AND (ii) amount in controversy exceeds $75,000.


What are the two exceptions to federal DIVERSITY jurisdiction? (Where States would have control).

(1) Probate, and (2) Domestic Matters.


Diversity jurisdiction, what is the rule of complete diversity?

Parties must be completely diverse across opposing sides (if even one P v. D in suit from same state, diversity jurisdiction fails)


Diversity Jurisdiction, when is date of determination for diversity?

Date of filing.

There is no requirement that diversity existed exist at time cause of action arose.


Who may be party to diversity jurisdiction claim?

1. Individuals, 2. Business Entities


Can a corporation be party to diversity action?

Yes. Corporation is citizen of state (i) where incorporated, and (ii) principle place of business.

*Both states must be listed, if different.


For the purposes of jurisdiction, how is corporation state of incorporation vs. principle place of business defined?

State of incorporation - state where corporation is legally established.

Principle place of business - balancing test based on factors where nerve center is located, location of high level officers


What is the date of determination for corporation's citizenship?

At the time the action is commenced.


What are some mechanisms that can create or destroy diversity actions?

(1) Assignment of claim. (2) Failure to name indispensable parties


Diversity jurisdiction, what is the rule regarding "amount in controversy?"

amount in controversy must exceed $75,000.

*attorneys fees/punitive damages may be permitted depending on contract/situation.

*standard of proof = good faith assertion by P


Diversity jurisdiction, case in controversy requirement AND aggregate claims, what is important to note?

Single plaintiff --> total P claim = amount

Multiple plaintiff --> each P amount JUDGED SEPARATELY

What if multiple Ds --> if jointly liable, then aggregation permissible.

Class actions (generally) --> if one member does not meet requirement, then class invalidated. Class ACtion Fairness act has exceptions for class actions of 100+


What is supplemental jurisdiction?

Court may exercise supp jurisdiction over additional claims which the court would not INDEPENDENTLY have SMJ.


What is removal jurisdiction?

D can remove case from state court to federal court.


True or False, removal jurisdiction is available to plaintiff?

False, only available to defendant.


What rules govern the determination of removal jurisdiction?

Generally, determined based on pleadings filed at time of removal filing.

However, with diversity cases, diversity must exist both at (i) original filing, and (ii) removal filing.


When must notice of removal be filed?

Filed by D 30 days after receipt by or service on that D of the initial pleading or summons