Subject Matter Jurisdiction

Question 1

Subject Matter Jurisdiction

Answer 1

The term “subject matter jurisdiction” refers to a court’s competence to hear and determine cases of a general class and subject to which the proceedings in question belong.

The five most common congressional grants of subject matter jurisdiction are:

1. Federal question jurisdiction
2. Diversity jurisdiction
3. Supplemental jurisdiction
4. Removal jurisdiction
5. Legislative jurisdiction

Question 2

Abstention

Answer 2

The term “abstention” refers to a policy allowing federal courts to decline to exercise jurisdiction in certain circumstances in deference to a state court’s resolution of a controversy.

Question 3

Federal Question Jurisdiction

Answer 3

Article III, Section 2 of the U.S. Constitution provides that federal judicial power shall extend to all cases “arising under this Constitution, the Laws of the United States, and Treaties made, or which shall be made, under their Authority.”

Today, the general congressional grant of federal question jurisdiction is also codified by statute under § 1331

Question 4

Standard for Whether an Action Arises under Federal Law

Answer 4

For the purposes of § 1331, federal law includes the U.S. Constitution, federal statutes, federal administrative regulations, and U.S. treaties. State laws incorporating standards of federal law are not considered laws of the United States under § 1331.

Question 5

Declaratory Judgment Action

Answer 5

Actions for declaratory relief anticipate some future action or infringement of rights and seek a declaratory judgment to resolve uncertainty and to avoid the possibility of a future lawsuit.

Question 6

Diversity Jurisdiction

Answer 6

Article III, Section 2 of the U.S. Constitution permits Congress to extend federal judicial power to controversies “between citizens of different states . . . and between a state or the citizens thereof, and foreign states, citizens or subjects.”

Question 7

Diversity of Citizenship

Answer 7

Diversity of citizenship is a basis for federal jurisdiction that exists when the amount in controversy exceeds $75,000 and the opposing parties are citizens of different states. Jurisdiction based on diversity of citizenship is commonly referred to as diversity jurisdiction.

Question 8

Minimal Diversity

Answer 8

Minimal diversity exists if at least one plaintiff and one defendant are citizens of different states, regardless of the citizenship of other claimants.

Question 9

Domicile

Answer 9

Domicile is the state or country where (1) a person resides and intends to remain indefinitely or (2) a corporation was incorporated or maintains its principal place of business.

Question 10

Nerve Center (Principal Place of Business)

Answer 10

A corporation’s nerve center is generally the location where the high-level officers direct, control, and coordinate the activities of the corporation. Typically, the nerve center is the corporate headquarters.

Question 11

Amount in Controversy

Answer 11

For a court to exercise diversity jurisdiction, the amount in controversy must exceed $75,000, exclusive of interest, costs, and collateral effects of a judgment.

Question 12

Aggregation of Claims

Answer 12

Aggregation of claims is the combining the values of several claims to determine whether the amount in controversy exceeds the threshold for diversity jurisdiction.

Question 13

Counterclaim

Answer 13

A counterclaim is a claim for relief asserted in opposition to an opposing party’s earlier claim. There are two types of counterclaims:

Compulsory counterclaim
Permissive counterclaim

Question 14

Compulsory Counterclaim

Answer 14

A compulsory counterclaim is a claim arising out of the same transaction or occurrence as the plaintiff’s claim.

Question 15

Permissive Counterclaim

Answer 15

A permissive counterclaim is a claim arising out of a transaction that is unrelated to the plaintiff’s claim.

Question 16

Supplemental Jurisdiction

Answer 16

A district court with jurisdiction over a claim may exercise “supplemental jurisdiction” over additional claims in certain circumstances even though the court would not independently have subject matter jurisdiction. In these cases, the additional claims must be so related to the original claim that the additional claims form part of the same case or controversy under Article III of the U.S. Constitution. § 1367(a).

Question 17

Removal Jurisdiction

Answer 17

Any civil action commenced in a state court that is within the original jurisdiction of a U.S. district court may generally be removed by the defendant to the district court for the district and division in which the state-court action is pending. § 1441(a).