Subject Matter Jurisdiction

Question 1

Q: What are the three tickets that allow a case to be heard in federal court?

Answer 1

Federal Question, Diversity, and supplemental

Question 2

What is subject matter jurisdiction?

Answer 2

It refers to the court’s authority to hear a case based on the nature of the issue, such as federal question jurisdiction or diversity jurisdiction.

Question 3

What does 28 U.S.C. § 1331 establish?

Answer 3

It grants federal district courts original jurisdiction over civil actions arising under the Constitution, laws, or treaties of the United States.

Question 4

What is a “cause of action”?

Answer 4

A cause of action is the legal reason (claim) the plaintiff uses to seek relief, based on a violation of their rights.

Question 5

What is the well-pleaded complaint rule?

Answer 5

It requires that the plaintiff’s claim (cause of action) in a complaint must arise directly under federal law for a federal court to have jurisdiction.

Question 6

What is a key ruling in Louisville & Nashville Railroad v. Mottley?

Answer 6

The Supreme Court ruled that federal courts lacked jurisdiction because the plaintiff’s cause of action was based on state law, not federal law, and a federal issue raised in defense does not meet the well-pleaded complaint rule.

Question 7

What is the significance of Grable & Sons in federal jurisdiction cases?

Answer 7

It established an exception to the well-pleaded complaint rule, allowing federal jurisdiction if a federal issue is necessarily raised, actually disputed, substantial, and capable of resolution without disrupting the federal-state balance.

Question 8

Why was Grable & Sons able to raise a federal issue in a state law quiet title action?

Answer 8

The case involved a dispute over whether the IRS notice was constitutionally sufficient, a federal issue necessary to decide the case.

Question 9

What is the key issue in Smith v. Kansas City Title & Trust Co. (1921)?

Answer 9

Whether the bonds issued by a federal agency were unconstitutional, which was a federal issue necessary to the state law cause of action.

Question 10

Can state courts hear cases involving federal issues?

Answer 10

Yes, unless a statute specifically states that the issue can only be heard in federal court.

Question 11

Why can’t a breach of contract case typically be heard in federal court under federal question jurisdiction?

Answer 11

Breach of contract is a state law issue and does not arise under federal law unless it meets an exception or involves diversity jurisdiction.

Question 12

What does the well-pleaded complaint rule require?

Answer 12

The plaintiff’s claim must be based on a federal cause of action, meaning the right claimed to be violated must be one provided by federal law.

Question 13

What is required for a case to meet federal question jurisdiction under 28 U.S.C. § 1331?

Answer 13

The plaintiff must assert a cause of action arising under the Constitution, laws, or treaties of the United States.

Question 14

What are the requirements for an exception to the well-pleaded complaint rule as established in Grable & Sons?

Answer 14

1) The federal issue must be necessarily raised, 2) The issue must be actually disputed, 3) The issue must be substantial, and 4) The case must be capable of resolution in federal court without disrupting the federal-state balance.

Question 15

What makes a federal issue “substantial” under the Grable & Sons framework?

Answer 15

A federal issue is substantial if: 1) It is a pure issue of law, 2) It affects numerous other cases, 3) It involves the legality of federal government action, or 4) It involves the constitutionality of a federal statute.

Question 16

When is a federal issue unlikely to be considered substantial?

Answer 16

A federal issue is unlikely to be substantial if it pertains to the application of a federal statute to the specific facts of a single case, as state courts are well-equipped to handle such applications.

Question 17

What is diversity jurisdiction under 28 U.S.C. § 1332(a)?

Answer 17

Diversity jurisdiction exists when the amount in controversy exceeds $75,000 and the parties are citizens of different states or between a citizen and a foreign citizen, with some exceptions.

Question 18

What is “complete diversity” in the context of diversity jurisdiction?

Answer 18

Complete diversity requires that no plaintiff shares the same state citizenship as any of the defendants.

Question 19

How does the removal rule apply to diversity jurisdiction?

Answer 19

A defendant can remove a case from state court to federal court if there is diversity jurisdiction, but this does not apply if the defendant is sued in their home state.

Question 20

Can foreign citizens sue in federal court under diversity jurisdiction?

Answer 20

Yes, foreign citizens can sue U.S. citizens in federal court, but if a foreign citizen is domiciled in the same state as the opposing party, there is no diversity jurisdiction.

Question 21

What does Redner v. Sanders teach us about domicile in diversity cases?

Answer 21

A party cannot lie about their domicile, and the court will look at intent to determine domicile in diversity jurisdiction cases.

Question 22

Under 8 U.S.C. § 1332(c)(2), what determines the citizenship of the legal representative of an estate in a diversity jurisdiction case?

Answer 22

The legal representative is deemed a citizen of the same state as the decedent.

Question 23

What is a facial attack in diversity jurisdiction cases?

Answer 23

A facial attack challenges the complaint itself, asserting that the complaint fails to establish diversity jurisdiction.

Question 24

What is an evidentiary challenge in diversity jurisdiction cases?

Answer 24

An evidentiary challenge disputes the evidence supporting claims of diversity, often requiring proof such as affidavits or deeds to establish domicile.

Question 25

In the case of Hawkins v. Master Farms, what standard of evidence did the court apply to determine Mr. Creal’s domicile?

Answer 25

The court used the preponderance of the evidence standard, which showed Creal had intent to remain in Missouri.

Question 26

What does Redner v. Sanders establish about proving domicile?

Answer 26

The court must prove intent to establish domicile, and one cannot lie about their domicile in a diversity jurisdiction case.

Question 27

How is the principal place of business for a corporation determined under the Nerve Center test?

Answer 27

It is the place where the corporation’s high-level officers direct, control, and coordinate the company’s activities, often the headquarters.

Question 28

How is citizenship determined for non-corporate entities like LLCs and LLPs in diversity jurisdiction?

Answer 28

The entity is considered a citizen of every state where its members (LLC) or partners (LLP) are citizens.

Question 29

What does the Hertz v. Friends case establish about a corporation’s citizenship?

Answer 29

The U.S. Supreme Court held that a corporation’s “principal place of business” is where its high-level officers direct, control, and coordinate the corporation’s activities, known as the “nerve center.”

Question 30

What is the minimum amount in controversy required for diversity jurisdiction under 28 U.S.C. § 1332(a)?

Answer 30

The amount in controversy must exceed $75,000, exclusive of interest and costs.

Question 31

What is the aggregation rule for determining the amount in controversy?

Answer 31

A single plaintiff may aggregate claims against one defendant to meet the amount in controversy requirement, but cannot aggregate claims against multiple defendants unless they are jointly liable.

Question 32

What is the Saint Paul Mercury rule regarding the amount in controversy?

Answer 32

If the plaintiff seeks more than $75,000 in damages, the amount in controversy is met unless it appears to a legal certainty that the claim is for less.

Question 33

Can co-plaintiffs aggregate their claims to meet the amount in controversy requirement?

Answer 33

No, separate plaintiffs cannot aggregate their claims to meet the amount in controversy; however, if one plaintiff meets the requirement, the other can still join the federal case through supplemental jurisdiction if the claims are related.

Question 34

What is supplemental jurisdiction?

Answer 34

Supplemental jurisdiction allows federal courts to hear additional claims beyond what federal law alone would permit, as long as they share a common nucleus of operative facts with a federal claim.

Question 35

What does it mean for claims to arise from a “common nucleus of operative facts”?

Answer 35

It means the claims are so related that they would ordinarily be expected to be tried together, with facts proving one claim likely relevant to proving the others.

Question 36

Can state claims be resolved or dismissed without affecting federal claims under supplemental jurisdiction?

Answer 36

If state claims can be resolved without affecting federal claims, supplemental jurisdiction does not apply to them.

Question 37

Under supplemental jurisdiction, can new parties be added to a case based on diversity jurisdiction?

Answer 37

No and yes, if diversity is the sole reason for federal jurisdiction, federal courts cannot exercise supplemental jurisdiction over claims by plaintiffs against new parties that would destroy diversity. But the court can if defendants add new parties.

Question 38

Does the restriction on adding new parties under diversity jurisdiction apply if there is a federal question in the case?

Answer 38

No, the restriction only applies if the case is based solely on diversity jurisdiction. If there’s a federal question, the restriction does not apply.

Question 39

Does the restriction on supplemental jurisdiction under 28 U.S.C. § 1367(b) apply to counterclaims by defendants?

Answer 39

No, the restriction does not apply to counterclaims brought by defendants against plaintiffs.

Question 40

Why didn’t the restriction on supplemental jurisdiction under 1367(b) apply in Ameriquest?

Answer 40

Because the case involved a federal question, and the restriction only applies when diversity is the sole basis for federal jurisdiction.

Question 41

When can a district court decline to exercise supplemental jurisdiction under 28 U.S.C. § 1367(c)(1)?

Answer 41

The court may decline jurisdiction if the claim raises a novel or complex issue of state law.

Question 42

What does 28 U.S.C. § 1367(c)(2) say about declining jurisdiction?

Answer 42

The court can decline jurisdiction if the state law claim substantially predominates over the claims for which the court has original jurisdiction.

Question 43

Under what circumstances can a court decline supplemental jurisdiction according to 28 U.S.C. § 1367(c)(3)?

Answer 43

If the court has dismissed all claims over which it had original jurisdiction, it may decline supplemental jurisdiction.

Question 44

What does 28 U.S.C. § 1367(c)(4) state about exceptional circumstances for declining jurisdiction?

Answer 44

The court may decline jurisdiction in exceptional circumstances if there are other compelling reasons, such as advanced state litigation.

Question 45

What was the court’s reasoning in Ramos for declining jurisdiction over Puerto Rican law claims?

Answer 45

The Puerto Rican claims outnumbered the federal ones, and the claims involved novel issues of state law, specifically Puerto Rican professional ethics, which were better suited for state court adjudication.

Question 46

What is removal in the context of jurisdiction?

Answer 46

Removal allows a defendant to move a case from state court to federal court if the case could have been originally filed in federal court.

Question 47

Can a defendant remove a case from federal court back to state court?

Answer 47

No, defendants cannot remove a case back to state court but can file to dismiss if there is no subject matter jurisdiction.

Question 48

What are the exceptions allowing removal to federal court without diversity or a federal question?

Answer 48

Exceptions include suits against federal officers for official acts, military members for official acts, and certain equal rights cases.

Question 49

What is the home-state exception to removal?

Answer 49

A defendant cannot remove a case to federal court if it was filed in the defendant’s home state.

Question 50

What is the process for removing a case to federal court?

Answer 50

The defendant files a notice of removal, stating the grounds for federal jurisdiction, and includes all documents from the state court case. All defendants must agree to removal.

Question 51

What happens to the state court case once a notice of removal is filed?

Answer 51

The state court is prohibited from proceeding further on the case once the notice of removal is filed.

Question 52

What must a plaintiff do if they believe the case was improperly removed?

Answer 52

The plaintiff must file a motion to remand within 30 days of the notice of removal, unless the issue is lack of subject matter jurisdiction.

Question 53

What happens if a case is improperly removed and then remanded back to state court?

Answer 53

The defendant must pay the costs incurred due to the removal if the case is remanded back to state court.

Question 54

Under what condition can a civil action be removed to federal court under 28 U.S.C. § 1441(a)?

Answer 54

A defendant may remove a civil action if the district court has original jurisdiction, meaning it could have been filed in federal court initially.

Question 55

What is the time limit for filing a notice of removal under 28 U.S.C. § 1446(b)(1)?

Answer 55

The notice of removal must be filed within 30 days after the defendant receives the initial pleading or summons.

Question 56

What does 28 U.S.C. § 1446(b)(2)(A) require when multiple defendants are involved in a removal?

Answer 56

All defendants who have been properly joined and served must agree to the removal of the action.

Question 57

What is the exception to the 1-year limitation on removal in diversity cases under 28 U.S.C. § 1446(c)(1)?

Answer 57

A case may still be removed after one year if the plaintiff acted in bad faith to prevent removal.

Question 58

What happens if a defendant deliberately fails to disclose the actual amount in controversy to prevent removal under 28 U.S.C. § 1446(c)(3)(B)?

Answer 58

It will be considered bad faith, and removal may be permitted even after the 1-year deadline.

Question 59

What can a court do if a case is improperly removed under 28 U.S.C. § 1447(c)?

Answer 59

A court can remand the case to state court if the removal is improper and may order the defendant to pay the costs and expenses incurred due to the removal.

Question 60

When can a motion to remand a case be filed according to 28 U.S.C. § 1447(c)?

Answer 60

A motion to remand for any reason other than lack of subject matter jurisdiction must be filed within 30 days after the notice of removal.

Question 61

Under 28 U.S.C. § 1447(e), what happens if a plaintiff seeks to join additional defendants whose joinder would destroy subject matter jurisdiction?

Answer 61

The court may either deny joinder or allow it and remand the case to state court.

Question 62

Can a case be removed to a different federal district court after the initial removal?

Answer 62

Yes, a case may be transferred to another federal district court after removal if needed, but the initial removal must occur in the district court covering the same geographic area as the state court.

Question 63

What happens if a case is removable but not removed within the initial 30 days?

Answer 63

The case cannot be removed later, even if it becomes removable on new grounds, if the defendant did not file within the first 30 days.

Question 64

When can a case be remanded back to state court?

Answer 64

A case may be remanded at any time before final judgment if the federal court lacks subject matter jurisdiction.

Question 65

What was the key issue in Keller Logistics v. Navistar?

Answer 65

Can a defendant remove a case on diversity grounds after more than one year has passed since the case began?

Question 66

What was the holding in Keller Logistics v. Navistar?

Answer 66

Yes, a defendant can remove the case if the court finds that the plaintiffs acted in bad faith to prevent removal.

Question 67

What must a summons contain under FRCP 4(a)?

Answer 67

A summons must include the court’s name, parties, the defendant’s response time, be signed by the clerk, and bear the court’s seal.

Question 68

What happens if a defendant fails to waive service under FRCP 4(d)?

Answer 68

The defendant may be required to pay the expenses for service and any associated attorney’s fees if they fail to waive service without good cause.

Question 69

What methods of service are allowed for individuals under FRCP 4(e)?

Answer 69

(1) service may be made by delivering the papers to the defendant personally; (2) Leave the papers at the defendant’s home with a person of suitable age and discretion residing therein; (3) Deliver the papers to a person who has been appointed as the defendant’s agent for service of process (this person must be appointed by the defendant, or be designated by law); (4) The plaintiff may also use state law methods in service of process (rules are different for each state). You can use the state rules for where the lawsuit was filed, or for where the defendant is a citizen.

Question 70

How can corporations be served under FRCP 4(h)?

Answer 70

(1) delivered personally to an officer or a managing agent of the corp; or (2) a person authorized by law to receive service of process (many state require this); or (3) Use state methods of service on a corp, this includes the service rules of either the state where service is made, or the service rules of the state in which the action is pending.

Question 71

What is the constitutional requirement for service of process under Mullane v. Central Hanover Bank & Trust Co.?

Answer 71

Notice must be “reasonably calculated” to inform parties of the action and give them the opportunity to respond, rather than just using a general publication.

Question 72

What is the timing requirement for service under FRCP 4(m)?

Answer 72

Service must be completed within 90 days of filing the complaint, but extensions may be granted for good cause.

Question 73

What happens if Garcia is a US citizen permanently residing in Mexico, with no domicile in any US state?

Answer 73

No diversity jurisdiction because it doesn’t fit any of the four categories.

Question 74

What does 28 U.S.C. § 1332(a)(2) cover?

Answer 74

It covers disputes between a citizen of a state and a foreign citizen, unless the foreign citizen is a permanent resident of the US and domiciled in the same state as the U.S. citizen on the other side of the case.

Question 75

What happens if a foreign citizen is a permanent resident of Illinois but still a citizen of Mexico?

Answer 75

There is no diversity jurisdiction under 28 U.S.C. § 1332(a)(2) because the exception applies in this scenario.

Question 76

Is there diversity jurisdiction if one additional party is a citizen of a foreign country?

Answer 76

Yes, this satisfies 28 U.S.C. § 1332(a)(3).

Question 77

What if both the plaintiff and defendant are citizens of different foreign countries?

Answer 77

No, there is no diversity jurisdiction because none of the categories under 28 U.S.C. § 1332(a)(1) through (4) cover this scenario.

Question 78

Is there diversity jurisdiction if a citizen of Michigan sues a citizen of Illinois with a foreign citizen on either side of the dispute?

Answer 78

Yes, diversity jurisdiction exists under 28 U.S.C. § 1332(a)(3).

Question 79

What does it mean for an individual to be a “citizen of a State” for purposes of section 1332?

Answer 79

An individual is a “citizen of a State” if they have US citizenship + domicile in a US state. * If an individual doesn’t satisfy both requirements, they are not a “citizen of a State.” * And domicile = physical presence + intent to remain.

Question 80

What does 28 U.S.C. § 1332(c)(1) define regarding corporate citizenship?

Answer 80

It defines that a corporation is a citizen of two states: the state of incorporation and the state where its principal place of business (PPB) is located.

Question 81

What is joint liability in the context of multiple defendants?

Answer 81

Joint liability means each defendant is liable up to the full amount of the plaintiff’s damages. The plaintiff can only sue once for the joint obligation, and the amount in controversy (AIC) is satisfied as to each defendant because each is liable for the entire amount.

Question 82

How does several liability differ from joint liability?

Answer 82

Under several liability, each defendant is responsible only for their share of the obligation. For example, if liability is 50-50, each defendant is liable for $40k in damages, not the full amount.

Question 83

What are “operative facts” in a legal case?

Answer 83

Operative facts are those that are relevant in deciding who wins the claim. They are crucial in determining the outcome of the case.

Question 84

How does the resolution of state claims impact federal claims?

Answer 84

If the resolution of state claims impacts federal claims, then there will be operative facts that need to be considered. This is important to avoid inconsistent judgments between state and federal courts.

Question 85

Under what conditions does 28 U.S.C. § 1367(b) limit supplemental jurisdiction over additional claims?

Answer 85

367(b) limits supplemental jurisdiction when: * The only basis for original jurisdiction is diversity; * The additional claims are by plaintiffs; * The additional claims involve parties brought in under rules that destroy complete diversity or do not meet the amount in controversy (AIC).

Question 86

Does 28 U.S.C. § 1367(b) apply to counterclaims by defendants?

Answer 86

No, 1367(b) does not apply to counterclaims by defendants against plaintiffs. It only affects additional claims brought by plaintiffs.

Question 87

What is Rule 14 in the Federal Rules of Civil Procedure?

Answer 87

Rule 14 deals with third-party complaints, allowing a defendant to assert a claim against a non-party who then becomes a third-party defendant.

Question 88

What does Rule 19 of the Federal Rules of Civil Procedure address?

Answer 88

Rule 19 addresses required joinder, meaning plaintiffs and defendants that must be added to the cause of action for the case to proceed properly.

Question 89

What is the focus of Rule 20 in the Federal Rules of Civil Procedure?

Answer 89

Rule 20 deals with permissive joinder, allowing plaintiffs and defendants to be added to the cause of action if they meet certain criteria.

Question 90

What does Rule 24 of the Federal Rules of Civil Procedure cover?

Answer 90

Rule 24 allows third parties to choose to join the lawsuit themselves, either as intervenors of right or by permission.