SMJ Flashcards
(38 cards)
SMJ is the courts power over the…
case.
Federal courts have limited smj; aka can only hear certain kinds of cases.
State courts can hear any kind of case (general SMJ)
Cases state courts CANNOT hear
Patent infringement, bankruptcy, some federal securities, and antitrust claims.
Most cases arising under federal law CAN be heard by state courts.
Cases Federal Courts CAN hear
(1) Federal question
(2) Diversity of citizenship jurisdiction (includes “alienage”
DIVERSITY OF CITIZENSHIP (AND ALIENAGE) CASES
The case is either (a) between citizens of different U.S. states (diversity); or (b) between a citizen of a U.S. state and a citizen of a foreign country (alienage);
AND
The amount in controversy exceeds $75,000.
Citizenship (DIVERSITY RULE STATEMENT)
Diversity of citizenship jurisdiction does not exist if any plaintiff is a citizen of the same state as any defendant; this is the complete diversity rule.
Whether there is diversity is determined when the case is filed.
Alienage jurisdiction is ___________ when the green card holder is domiciled in the same state as a party on the other side of the case.
Withdrawn
Citizenship of a U.S. Citizen is determined to be in the state where they are ______.
Domiciled. (only have one)
Domicile requires (1) physical presence and (2) the intent to make that place your home for the indefinite future
** intent look to relevant factors: taking a job, buying a house, registering to vote, and qualifying for in-state tuition.
A corporation is a citizen of any state or country where it is ____________ & where it has its ________________.
Incorporated & principal
place of business (“PPB”).
A corporation can be incorporated in more than one place.
PPB It is the state from which the corporation’s managers direct, coordinate, and control business activities
AKA the “nerve center” generally considered to be the corporate headquarters.
A Unincorporated Association (Partnership, Limited Liability Company) takes on the citizenships of all its ___________.
Members.
If it’s a limited partnership, you include the citizenships of general and limited partners.
A decedent, minor or incompetent person’s citizenship is based on ….
The decedent, minor, or incompetent person’s citizenship.
NOT their personal representative’s citizenship.
Citizenship for Class Actions is determined to be the citizenship of the …
named representative(s) of the class.
Diversity Jurisdiction: Amount in Controversy Requirement
Exceed $75K.
(and a penny)
Doesn’t include litigation costs or interest accrued on a claim.
Aggregation of Claims to meet the amount in controversy
Any single plaintiff may aggregate all of her claims against a single defendant.
Unlimited number of claims to be aggregated + claims dont have to be related to each other.
Special rule for Joint Claims meeting amount in controversy
You use the total value of the claim. With joint claims, the number of parties is irrelevant.
Equitable Relief can be used to meet amount in controversy and is determined using two tests (either can be met for AIC to be satisfied)
Plaintiffs’ Viewpoint Test: If granted, does the relief requested have a value of more than $75,000 to the plaintiff?
Defendants’ Viewpoint Test: If granted, will the relief requested by the plaintiff cost the defendant more than $75,000?
Excluded Cases from Diversity Jurisdiction
Divorce, alimony, child custody, and actions to probate an estate.
Collusive Creation of Diversity – What is it?
Parties cannot create diversity jurisdiction through sham or collusive transactions.
Example: Assigning a claim solely to manufacture diversity is not allowed. Courts will ignore the transaction and deny SMJ.
DOESN’T INCLUDE VOLUNTARY CHANGES OF CITIZENSHIP: A plaintiff can create diversity by changing citizenship after the cause of actione suit is commenced, if a accrued & befor genuine change of citizenship.
FEDERAL QUESTION CASES
The plaintiffs claim must “arise under” federal law
Pleader of federal question jurisdiction must follow “well pleaded complaint” rule
It’s not enough that some federal issue is raised by the complaint.
The plaintiff’s claim itself must “arise under” federal law. We examine the claim and disregard any other material that the plaintiff may have included in the complaint.
ASK: Is the plaintiff enforcing a federal right?
Plaintiff sues defendant in state could, but the defendant would prefer to litigate in federal court, the defendant may _______ the case to federal court.
REMOVE
Removal transfers the case from a state trial court to a federal trial court.
If removal was improper, the federal court can ________ the case to state court.
Remand
How is a Case Removed?
(1) Defendant files a notice of removal in federal court, stating grounds for removal (SMJ or FQ)
(2) Defendant attaches all documents that were served on her in state action
(3) defendant then “promptly” serves a copy of the notice for removal on adverse parties AND
(4) files a copy of notice for removal in state court
Defendant must remove state action into federal court no later than ____ days after service of the first paper that shows the case is removable.
30 days
Usually, that means no later than 30 days of service of process.
Who must join the removal?
All defendants who have been served with process must join in the removal.
If defendants are served at different times, and a later served defendant initiates timely removal, the earlier served defendant may join in the removal even though her 30-day period for initiating removal may have expired.
LAST SERVED STILL HEARD:
“Last Served” = A later-served defendant
“Still Heard” = Can file for removal within 30 days, and earlier-served defendants can still join in
