Subject Matter Jurisdiction

Question 1

Federal courts have ____ Subject Matter Jurisdiciton.

Answer 1

Limited

Question 2

State courts have ____ Subject Matter Jurisdiciton.

Answer 2

General

Question 3

HYPO: A citizen of Bolivia sues a citizen of Australia concerning a car crash in China. In terms of SMJ only – can a state court in New Mexico hear this case?

Answer 3

Yes, state courts can hear anything.

SMJ ONLY – There will be PJ issues here.

Question 4

Can most cases arising out of federal law be heard in state courts?

Answer 4

Yes, generally state courts can hear anything.

Question 5

The two main types of cases that can be heard in federal court are:

Answer 5

(1) Federal question; and
(2) Diversity of Citizenship.

Question 6

(True/False): SMJ can be waived by the parties.

Answer 6

FALSE. SMJ is not a personal right, it is about government structure.

Question 7

If a court enters a judgment for a matter they didn’t have SMJ over, what happens to the judgment?

Answer 7

It is void.

Question 8

Diversity jurisdiction requirements are satisfied if:

Answer 8

1. Complete diversity exists between parties; and
2. The amount in controversy exceeds $75K.

Question 9

There will be no diversity SMJ if…

Answer 9

any P is a citizen of the same state as any D.

Question 10

When is the diversity of parties determined?

Answer 10

when the case is filed.

Question 11

HYPO: Plaintiff, citizen of Ohio, sues D1, a citizen of Maryland and D2, a citizen of Ohio, in federal court. Is this proper under diversity jurisdiction?

Answer 11

No – Plaintiff is from Ohio and so is one of the Defendants.

Question 12

HYPO: Plaintiff, a citizen of Spain, sues Defendant, a citizen of New York, in federal court. Is this OK for diversity jurisdiction purposes?

Answer 12

Yes – this is the alienage form of diversity jurisdiction.

Question 13

HYPO: Plaintiff, a citizen of Spain, sues Defendant, a citizen of Canada, in federal court. Is this OK for diversity jurisdiction purposes?

Answer 13

No – none of the parties are citizens of a U.S. state.

[could potentially be filed in state court]

Question 14

(TRUE/FALSE): A human can be a citizen of only one U.S. state at a time.

Answer 14

TRUE.

Question 15

The citizenship of a U.S. citizen is the state in which…

Answer 15

the citizen is domiciled.

Question 16

How does one establish a new domicile?

Answer 16

1. Physical presence in a new place; and
2. Subjective intent to make new place domicile for foreseeable future.

Courts will look to the totality of circumstances to determine intent.

Question 16

HYPO: Plaintiff, a citizen of Colorado, wants to sue Defendant, a citizen of Colorado in federal court. Plaintiff moves to Florida to establish diversity between the parties. Is that OK?

Answer 16

Only if the Plaintiff has actually changed domicile; they must have the subjective intent to remain in Florida.

Question 16

HYPO: Plaintiff, citizen of Ohio decides to move permanently to Georgia. She accepts a job in Georgia and tells everyone that she intends to live the rest of her life in Georgia. While driving to Georgia, she gets in a car accident in Kentucky and is hospitalized there. If she sues now, what is her citizenship?

Answer 16

Ohio. She has not established physical presence in Georgia yet.

Question 16

The citizenship of a corporation is:

Answer 16

1. Any state or county where it is incorporated; and
2. The one state that is the corporation’s PPB.

Question 16

HYPO: Plaintiff, a citizen of California sues D-Corp, incorporated in Delaware with its PPB in California. Is there diversity jurisdiction?

Answer 16

No – California overlaps.

Question 17

What is a corporation’s principle place of business?

Answer 17

It is the place where the corporation’s managers direct, coordinate, and control the business.

Question 17

What is the citizenship of an unincorporated business association?

(e.g., partnership, LLC)

Answer 17

An unincorporated association takes on citizenship of all members.

Question 18

HYPO: XYZ partnership has partners who are citizens of 18 different states. What are XYZ’s citizenships?

Answer 18

All 18 states where its members are citizens.

Question 19

Does a decedent, minor, or incompetent take on the citizenship of the representative by which they sue/are sued?

Answer 19

No. Use the decedent, minor, or incompetent’s citizenship.

Question 20

Who’s citizenship is used for class action lawsuits?

Answer 20

Only the citizenship of the named represenative.

Question 21

HYPO: Plaintiff sues for exactly $75,000, is that OK for diversity jurisdiction purposes?

Answer 21

No – must exceed $75K.

Question 22

What costs are included in the amount in controversity determination?

Answer 22

Only the claim itself is considered.

No litigation costs, attorney’s fees, prejudgment interests.

Question 23

If a Plaintiff claims over $75K in their complaint, when is that not sufficient for diversity jurisdiction purposes?

Answer 23

If it is clear to a legal certainty that the Plaintiff cannot recover more than $75K.

Question 24

HYPO: Plaintiff sues for $50K breach of contract and $60K for punitive damages based on the breach of contract. Will this meet the amount in controversy requirements?

Assume that relevant authority holds that punitive damages are not available in contract claims.

Answer 24

No. The claim for punitive damages cannot be included in a contract case. As a matter of law, it will not work – so it is clear to a legal certainty that the claim does not exceed $75K.

Question 25

Since SMJ attaches at the outset, it is only required that the Plaintiff make a ____ for $75K+.

Answer 25

Good faith allegation

Question 26

Aggregation of claims means:

Answer 26

adding 2 or more claims to meet the AiC.

Question 27

Who can aggregate claims?

Answer 27

Any SINGLE Plaintiff may aggregate all claims against a SINGLE Defendant.

Question 28

Is there a limit on the amount of claims a Plaintiff can aggregate against a Defendant?

Answer 28

No.

Question 29

Must aggregated claims be related to each other?

Answer 29

No.

Question 30

HYPO: Plaintiff sues Defendant for $40K breach of contract and $50K for an unrelated car accident. Is the AiC satisfied?

Answer 30

Yes, one Plaintiff against one Defendant and the aggregated claims exceed $75K.

Question 31

HYPO: Plaintiff-1 sues Defendant for $50K, Plaintiff-2 sues Defendant for $40K, can the claims be aggregated?

Answer 31

No. There are multiple Plaintiffs here.

Would have to be filed in state court.

Question 32

How is the amount in controversy determined for joint claims?

Answer 32

Look to the total value of the claim.

The number of parties is irrelevant in joint claims.

Question 33

HYPO: Plaintiff sues joint tortfeasors XYZ for $76K. Has the AiC been satisfied?

Answer 33

Yes, look to the total value of the claim.

These are joint tortfeasors, so any one of them could be liable for the full amount.

Question 34

How is the amount in controversy determined in cases seeking equitable relief?

Answer 34

1. If the equitable relief is granted, would the equity have a value of more than $75K to the Plaintiff?

OR

2. If the equitable relief is granted, will it cost the Defendant more than $75K to comply?

Question 35

Federal courts will decline to hear actions for…

Answer 35

Divorce, alimony, child custody, and probate.

Question 36

HYPO: Grown child, citizen of Montana, sues her parents, citizens of Wyoming, alleging that the parent had abused the child when she was young. The AiC sought is more than $75K, can a federal court hear this case?

Answer 36

Yes, it meets all the diversity jurisdiction requirements and it is not one of the excluded causes of action.

Question 37

Federal question jurisdiction exists when:

Answer 37

The Plaintiff’s claim arises under federal law.

Question 38

What should the court look to in determining whether FQ jurisdiction requirements have been met?

Answer 38

Only the Plaintiff’s well-pleaded complaint. The Plaintiff’s claim itself must arise under federal law.

ASK: Is the Plaintiff enforcing a federal right?

Question 39

HYPO: A homeowner hires a builder to build a house. The builder fails to build that house but asserts that a federal environmental statute prohibits building where the homeowner wants to build. Homeowner sues the builder for specific performance and alleges that the federal statute does not apply. Has federal question jurisdiction requirements been met?

Answer 39

No – the homeowner is not seeking to enforce a federal right.

A federal defense is insufficient to raise FQ jurisdiction.

Question 40

HYPO: A former employee, a citizen of Louisiana, sues her employer, also a citizen of Louisiana. The employee alleges that the employer violated the employee’s rights under federal discrimination laws. The employee’s claim is for $74,999. Can the employee’s case be heard in federal court?

Answer 40

Yes, it invokes federal question jurisdiction.

Question 41

Removal is a procedure which allows…

Answer 41

a defendant to move a case from state court to federal court.

Question 42

If federal removal is improper, the court will…

Answer 42

remand the claim back to state court.

Question 43

A case may be removed to federal court if:

Answer 43

it could have originally been brought in federal court.

Question 44

How is a case removed to federal court?

Answer 44

The Defendant must file a notice of removal in federal court.

Question 45

What must be included in a notice of removal?

Answer 45

Grounds of removal.

Defendant must also attach all documents served upon it in the state court proceeding.

Question 46

Is court permission required to file a notice of removal?

Answer 46

No.

Question 47

Who must a notice of removal be served upon?

Answer 47

Adverse parties.

Question 48

Where should a Notice of Removal be filed?

Answer 48

Filed in federal court, with a copy of the notice filed in state court.

Question 49

When must a Defendant seek to remove a claim?

Answer 49

No later than 30 days after service of the 1st paper showing case is removable.

Question 50

HYPO: Plaintiff sues Defendant in state court and has process served on July 1. Defendant makes a motion to dismiss in state court on July 15. The state court denies the motion to dismiss on August 1. Defendant removes the case to federal court on August 2. Is the timing for removal proper?

Answer 50

No – removal was more than 30 days after service of process here.

Question 51

Who joins in removal?

Answer 51

All Defendants served with process must join.

Question 52

If Defendants are served at different times, and a later served Defendant initiates a timely removal, will the earlier-served Defendant be able to join in the removal?

Answer 52

Yes, even if the 30-day period for timely removal for that Defendant has expired.

Question 53

HYPO: Plaintiff sues Defendant-1 and Defendant-2 on June 1. Defendant-1 is served with process on June 1. Defendant-1 does not remove the case within 30 days. Then Defendant-2 is served with process on August 1. Can the second Defendant now remove the case?

Answer 53

Yes, if both D-1 and D-2 choose to remove within D-2s 30-days.

Question 54

Can a Plaintiff ever remove a case?

Answer 54

No. Not even if the Defendant asserts a counterclaim against the Plaintiff.

Question 55

What are the two limitations on removal based on diversity jurisdiction?

Answer 55

1. The case should not be removed if any Defendant is a citizen of the forum state; and
2. The case should not be removed if more than one year has passed since the claim was filed in state court.

Question 56

HYPO: Plaintiff, a citizen of Georgia, sues D1, a citizen of Minnesota and D2, a citizen of Alabama, on state law claims for $500K in an Alabama state court. Can the Defendants remove?

Answer 56

No – D2 is a citizen of the forum, Alabama.

Question 57

What is the only exception to the 1-Year Removal Rule?

Answer 57

The one-year removal restriction does not apply ONLY IF a D originally joined only to prevent removal.

Question 58

What federal court will a state court claim be removed to?

Answer 58

The one federal court that embraces the state court, geographically, where the claim was originally filed.

Question 59

If the Plaintiff thinks a case should not have been removed, she can…

Answer 59

Either:
1. Move to remand the case within 30 days (if the reason for remand is for any defect other than lack of SMJ); OR

2. Move to remand based on SMJ within any time (SMJ is never waived).

Question 60

HYPO: A homeowner hires a Delaware home-builder to construct the home designed by a California architect. The home is to be built in California. The home was not built to the homeower’s satisfaction, so the homeowner files suit against the builder and architect in California state court for $1million. The Defendants remove the case to federal court. When must the homeowner file motion to remand?

Answer 60

Within 30 days. The problem is the in-state defendant rule – NOT SMJ.