SMJ Flashcards
SMJ Basics
- Cts power over the case
- Fed cts have limited SMJ
- State cts can hear any type of case except: patent infringement, bankruptcy, some federal securities, and antitrust claims
- Most cases arising under fed law can be heard by state cts
Federal courts have limited SMJ
FQ & Diversity
- A lack of SMJ (unlike lack of PJ) cannot be waived
- If a case does not in invoke FSMJ, the fed ct cannot hear the case, if it does, the judgment is void.
Diversity of Citizenship
(1) The case is either between (a) citizens of different U.S. states (diversity); or (b) a citizen of a U.S. state and a citizen of a foreign country (alienage); and
(2) The AIC exceeds 75k.
- DOCJ does not exists if any P is a citizen of the same state as any D; this is the complete diversity rule.
- Diversity is determined when the case is filed
- Citizenship of a person is the one U.S. state in which she is domiciled, a person can have only one domicile.
How to establish a new domicile
(1) By being physically present in new domicile &
(2) having intent to make new place your home for indefinite future.
- For intent, cts looks at all relevant factors: taking a job, buying a house, joining civic orgs, registering to vote, qualifying for in-state tuition, etc.
Citizenship of a corporation
- Citizen of any state/country in which it is incorporated & the one state/country in which it has it PPB.
- PPB is state in which corp’s managers direct, coordinate, & control the business.
- “Nerve center”, usually the headquarters
Citizenship of Unincorporated Association (Partnerships, LLC, etc.)
- Takes on citizenship of all members
- If limited partnership, include citizenship of general & limited partners
Citizenship of descendants, minors, and incompetents
- Must sue/be sued through rep
- Rep’s citizenship: irrelevant
- Must use citizenship of D, M, or I.
Class actions
- Citizenship of the named rep(s) of the class is used
AIC
- P’s claim(s) must exceed 75k
- Only claim itself is considered
- Litigation costs/interest are not included
- Interest that is part of a loan/K is included b/c it is part of the claim itself
- What ever P claims in good faith is ok unless it is clear to a legal certainty that she cannot recover more than 75k
Aggregation of claims
- Any single P may aggregate all her claims against a single D
- There is no limit as to the number of claims a single P may aggregate against a single D
- Claims need not be related to each other
Joint claims
- Special rule: Use the total value of the claim
- # of parties if irrelevant
Equitable relief
- Includes the issuance of an injunction, specific performance, rescission of a K, etc.
- Two tests to determine if AIC is satisfied:
(1) Look at P’s viewpoint. If granted, does relief requested have a value of more than 75k?
(2) Look at D’s viewpoint. If granted, will relief requested by P cost D more than 75K?
Exclusions from Diversity Jurisdiction
- Fed cts will not hear actions for divorce, alimony, child custody, & actions to probate estate.
Collusive creation of diversity
- IF a party tries to create diversity by a sham transaction, such as assigning a claim for collection for purposes merely to create SMJ, cts ignore the transaction and declare that diversity does not exist
- A P can also create diversity by changing her citizenship after COA has accrued but b/f suit has commenced. IF it is a genuine change, diversity is ok
FQ cases
- P’s claim must “arise under” fed law
- Citizenship and AIC is irrelevant
- Pleader must follow the well pleaded complaint rule: It is not enough that some fed issue is raised by the complaint. P’s claim itself must arise under fed law
- Ask if P is enforcing a fed right, if yes, there is FQJ, if not, there is not.
