Subject Matter Jurisdiction

Question 1

Subject matter jurisdiction (SMJ)

Answer 1

Subject matter jurisdiction is the court’s power over the case, not over the parties
-Federal courts can only hear federal question or diversity jurisdiction cases
-Lack of SMJ cannot be waived
-Case tried with lack of SMJ = judgment is void

***State courts can hear almost ANY case except patent infringement, bankruptcy, federal securities and antitrust cases
-General subject matter jurisdiction

Question 2

Diversity of citizenship (and alienage)

Answer 2

Two requirements: (1) complete diversity; and (2) amount in controversy

1. Between citizens of different U.S. states or between a U.S. citizen and a foreign national; and
2. The amount in controversy exceeds $75,000 (greater than, not equal to)

Question 3

Complete diversity requirement

Answer 3

No diversity if any plaintiff or defendant are citizens of the same state
-Determine at time the lawsuit was filed

Citizenship is determined by type of party
(A) Person
-The one state where he has domicile
-Domicile can only be changed when a person is physically present in a new domicile with the intent to make that place his home for the indefinite future
-P can create a diversity after cause of action, but before commence of suit by genuinely changing citizenship
(B) Business
-Corporation: any state in which its incorporated + one state where PPOB is
-Unincorporated business: takes on citizenships of all members
(C) Decedents, Minors, and Incompetents
-All are sued through a representative, but its the citizenship of the decedent, minor, or incompetent that matters
(D) Class actions
-Citizenship of named representative(s)

Question 4

Amount in controversy requirement

Answer 4

Amount in controversy must EXCEED $75,000
-Based on good faith claims unless it is clear to a legal certainty that she cannot meet the threshold
-Any single P may aggregate all of her claims against a single D
-Use total value of claim for joint claims, number of parties irrelevant
-Do not include litigation costs or prejudgment interest (accrued from delay of payment due to the litigation)

Value of equitable relief (two tests - either is sufficient)
-If granted, does relief have a value of more than $75K to P?
-If granted, does relief requested cost D more than $75k?

Question 5

Diversity jurisdiction exclusions

Answer 5

1. Divorce
2. Alimony
3. Child custody
4. Probate
5. Sham diversity cases

Question 6

Federal question

Answer 6

Plaintiff’s claim must “arise under” federal law
-Regular tort, contract, and property claims are not federal

Ask: whether the plaintiff is enforcing a federal right
-If yes, there is a federal question

Question 7

Removal

Answer 7

A removal transfers the case from a state court to federal court
-Cannot remove a case from federal court to state court
-Only defendants can remove a case
-Federal SMJ is required
-All defendants must join in the removal (30-day period based on last D served)

Standard: a case can be removed to federal court when it could have been filed in federal court based on diversity or a federal question

Question 8

Removal process

Answer 8

1. D files a “notice of removal” in federal court stating its grounds for removal (diversity or federal question)
   -No permission required
   -Must attach service of process from state court
2. D promptly serves a copy of the notice of removal on adverse parties and files a copy with the state court

*Must remove no later than 30 days after service of process showing the case is removable

Question 9

Two limitations on removing diversity-based case

Answer 9

1. In-state defendant rule
   -Cannot remove diversity case from state court if any D is a citizen of the forum state
2. One-year limitation
   -Cannot remove diversity case from state court if one than one year has passed since P originally filed case in state court
   -Applicable when an in-state defendant or non-diverse defendant is voluntarily dismissed from the case making it removable

Question 10

Remand

Answer 10

A plaintiff can move to remand a removed case back state court if:
1. No SMJ (no time limit)
2. Violates DJ limitations (within 30 days of when notice of removal was filed or right is waived)
-In-state defendant rule
-Violates one-year limitation

Question 11

Removal venue

Answer 11

A case that is removed from state court is transferred to the federal district court “embracing” the state court where the case was filed
-Irrelevant whether it would have been a proper or improper venue