Subject Matter Jurisdiction

Question 1

SMJ is the court’s power over the ________.

Answer 1

Case

Question 2

Do federal courts have limited SMJ or general SMJ? What about state courts?

Answer 2

Federal = Limited SMJ
State = General SMJ

Question 3

What types of cases can state courts NOT hear?

Answer 3

A few types of federal cases (e.g., patent infringement, bankruptcy, some federal securities, and antitrust claims)

Question 4

What are the TWO main bases for federal SMJ?

Answer 4

(1) Federal Question Jurisdiction
(2) Diversity of Citizenship Jurisdiction

Question 5

Can a lack of SMJ be waived?

Answer 5

No.

Question 6

What are the requirements for diversity jurisdiction (and alienage)

Answer 6

(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 amount in controversy exceeds $75,000.

Question 7

What is the complete diversity rule? (in the negative)

Answer 7

Diversity of citizenship jurisdiction does not exist if any plaintiff is a citizen of the same state as any defendant

Question 8

When is diversity determined?

Answer 8

When the case is filed

Question 9

For alienage cases, what happens when a green card holder is domiciled in the same state as a party on the other side of the case?

Answer 9

Alienage jurisdiction is withdrawn

Question 10

How is citizenship determined for natural persons?

Answer 10

The citizenship of a person who is a U.S. citizen is the ONE U.S. state in which she is domiciled

Question 11

How does one establish a new domicile?

Answer 11

(1) physical presence in the new domicile and

(2) the intent to make that place your home for the indefinite future

Intent Considerations - taking a job, buying a house, registering to vote

Question 12

How is citizenship determined for corporations?

Answer 12

A corporation is a citizen of:

(a) any state or country in which it is incorporated; AND

(b) of the one state or country in which it has its PPB.

Question 13

Where is a corporation’s PPB?

Answer 13

the state from which the corporation’s managers direct, coordinate, and control business activities

Nerve center or corporate HQ

Question 14

How is citizenship determined for an unincorporated association? (e.g., partnership, LLC)

Answer 14

An unincorporated association takes on the citizenships of all of its members.

Question 15

How is citizenship determined for an decedents, minors, and incompetents (who must use representative)?

Answer 15

The representative’s citizenship is irrelevant. You use the citizenship of the decedent, minor, or incompetent.

Question 16

How is citizenship determined for class actions?

Answer 16

The citizenship of the named representative(s) of the class is used.

Question 17

Is $75,000.00 a sufficient amount in controversy for diversity (or alienage) jurisdiction?

Answer 17

No. It must exceed $75k

Question 18

What is NOT included in the amount in controversy calculation?

Answer 18

Litigation costs

Interest on the claim (prejudgment interest that results from delay of payment due to the litigation)

Note: interest that is part of a loan agreement is fine because it is a part of the claim

Question 19

Whatever amount in controversy P claims in good faith is permissible UNLESS…

Answer 19

it is clear to a legal certainty that she cannot recover more than $75,000.

Question 20

When can P aggregate claims to meet the amount in controversy requirement?

Answer 20

Any single plaintiff may aggregate all of her claims against a single defendant whether or not they are related

Question 21

How does the amount in controversy requirement work for join claims

Answer 21

You use the total value of the claim. The number of parties is irrelvant.

Question 22

How is equitable relief assessed for purposes of the amount in controversy requirement?

Answer 22

There are two tests; if either is met, most courts find that the amount in controversy is satisfied.

P’S VIEWPOINT - If granted, does the relief requested have a value of more than $75,000 to the plaintiff?

D’S VIEWPOINT - If granted, will the relief requested by the plaintiff cost the defendant more than $75,000?

Question 23

What types of cases cannot be heard by federal courts, even if the requirements for diversity or alienage are met? (Excluded Cases)

Answer 23

divorce, alimony, child custody, and actions to probate an estate.

Question 24

What happens if a party collusively creates diversity?

Answer 24

The court ignores the transaction (sham to create diversity like assigning a claim) and declares that diversity does not exist

Question 25

Is diversity created when P changes her state citizenship after the CoA accrued but before suit is commenced?

Answer 25

Yes, if it is a genuine change of citizenship.

Question 26

What is the requirement for federal question jurisdiction?

Answer 26

P must follow the "well-pleaded complaint" rule. IOW, P's claim itself must “arise under” federal law. IGNORE OTHER MATERIAL! It is not enough that some federal issue is raised by the complaint.

Question 27

What is removal?

Answer 27

Removal is the process by which D, who is being sued in state court, can transfer the case to federal court.

Question 28

What happens if removal was improper?

Answer 28

The federal court can remand the case to state court.

Question 29

When can D remove a case to federal court?

Answer 29

When the federal court had original jurisdiction over the case (could have been filed there). IOW, FQ or Diversity exist.

Question 30

If a case is removed to federal court, does it matter if the state court had no jurisdiction over the case because the action is exclusively federal?

Answer 30

No, it does not matter. The federal court may hear and decide the case under its removal jurisdiction.

Question 31

Explain the process by which a case is removed.

Answer 31

D files a notice of removal in federal court stating grounds of removal (SMJ - diversity or FQ) Permission of the state or federal court are not required. D attaches all documents served on her in the state action. D promptly serves a copy of the notice of removal on adverse parties and files a copy of it with the state court.

Question 32

By when must D remove a case?

Answer 32

No later than 30 days after service (not filing) of the first paper that shows the case is removable Usually, that means no later than 30 days of service of process.

Question 33

Who must join in the removal?

Answer 33

All Ds who have been served with process must join in removal.

Question 34

Can P ever remove the case? What if D files a counterclaim against P that could be heard in federal court?

Answer 34

No! Never.

Question 35

What cases may be removed? What are the two limitations? (just name them)

Answer 35

Cases with federal SMJ (diversity or FQ) LIMITATION 1: In-State Defendant Rule LIMITATION 2: One Year

Question 36

For cases with diversity SMJ, when can a case NOT be removed to federal court?

Answer 36

(1) In-State Defendant Rule: if any D is a citizen of the forum state (2) A case should not be removed more than 1 year after the case was filed in state court Usually occurs when the case becomes removable when the claim against the in-state D or non-diverse D is dismissed.

Question 37

Within what time can D remove a case after the claim against the in-state defendant or non-diverse defendant is dismissed? (assume one-year since filing has not elapsed)

Answer 37

D can remove within 30 days of the service of the dismissal (the first paper that shows the case is removable)

Question 38

To what federal court does D remove a case?

Answer 38

The defendant removes to the federal district court “embracing” the state court where the case was filed It does not matter if this venue would have been proper under the venue statutes.

Question 39

P sues D in state court in San Diego, which is in the Southern District of California. Can the defendant remove the case to federal court in San Francisco, which is in the Northern District of California?

Answer 39

No. This is not the court embracing the state court in which the case was filed.

Question 40

How long does P have to move to remand the case to state court?

Answer 40

Generally, P must move to remand no later than 30 days after the filing of the notice of removal Based on Lack of SMJ - no time limit for ordering remand

Question 41

How is supplemental jurisdiction different from FQ or diversity jurisdiction.

Answer 41

Diversity and FQ SMJ get cases into federal court. Instead, it gets claims into a federal case, even though the claims cannot use diversity of citizenship or FQ SMJ.

Question 42

In what type of case is supplemental jurisdiction proper?

Answer 42

When there is a case filed in federal court based on diversity or FQ jurisdiction AND An additional claim (regular claim, crossclaim, counterclaim) where there is no FQ or diversity jurisdiction

Question 43

Must a federal court have SMJ over every single claim in a case?

Answer 43

YES But it can be through supplemental jurisdiction

Question 44

What is the test for whether a claim can be joined in a federal case under supplemental jurisdiction?

Answer 44

The claim that we want to get into federal court must share a “common nucleus of operative fact” with the claim that satisfied federal SMJ. If a claim arises from STO, then it ALWAYS satisfies the test, but this test is broader.

Question 45

What cases are EXCLUDED from supplemental jurisdiction, even though they meet the common nucleus test?

Answer 45

** ONLY APPLICABLE TO CASES THAT GOT INTO FEDERAL COURT THROUGH DIVERSITY JURISDICTION ** There is no supplemental jurisdiction if the claim is ASSERTED BY THE PLAINTIFF. Exception: A claim by a plaintiff can use supplemental jurisdiction IF there are multiple Ps and the claim by one of them does not meet the amount-in-controversy requirement.

Question 46

When might a court decline to exercise supplemental jurisdiction, even if the requirements are met? (discretionary factors)

Answer 46

(a) If the state law claim is complex or predominates (b) If the claim on which federal jurisdiction SMJ is based is dismissed early in the case.