Subject Matter Jurisdiction

Question 1

What are the five most common congressional grants of subject matter jurisdiction.

Answer 1

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

Question 2

Can subject matter jurisdiction be waived?

Answer 2

No

Question 3

When can subject matter jurisdiction be objected to?

Answer 3

At any stage of a proceeding, including on appeal, or by the court. There is one exception: if the issue of subject matter jurisdiction wasn’t previously contested, then a judgment may not be challenged collaterally on that basis.

Question 4

When can subject matter jurisdiction NOT be objected to?

Answer 4

If the issue of subject matter jurisdiction wasn’t previously contested, then a judgment may not be challenged collaterally on that basis.

Question 5

What if there is a similar action pending in state court?

Answer 5

Usually, a federal court with subject matter jurisdiction still has to adjudicate the controversy.

Question 6

When can a court with subject matter jurisdiction abstain from hearing a case? Four reasons:

Answer 6

1. Resolution of a state law issue by a state court would ELIMINATE the need for the federal court to decide a federal constitutional issue. 2. To AVOID federal involvement with a complex state regulatory scheme or matter of great importance to the state. 3. The federal court is being asked to ENJOIN punishment of an individual for criminal activity, contempt of court, or a civil fine. 4. It’s a parallel proceeding that goes beyond the WASTE of resources.

Question 7

What is the textual “arising under” basis for federal question jurisdiction?

Answer 7

Article III, Section 2: Federal district “courts shall have original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the United States.”

Question 8

What is a well-pleaded complaint?

Answer 8

A well-pleaded complaint will present a federal law issue as a necessary element of the plaintiff’s cause of action.

Question 9

What is the textual basis for diversity jurisdiction?

Answer 9

Article III, Section 2

Question 10

What are the different kinds of diversity actions?

Answer 10

1. Citizens of different states 2. Citizens of a state and citizens of a foreign state 3. Foreign state (as plaintiff) against citizens of states

Question 11

What areas of law of usually excluded from diversity jurisdiction?

Answer 11

1. Probate matters 2. Domestic relations (divorce, alimony, custody disputes)

Question 12

When can class actions satisfy only minimal diversity?

Answer 12

For certain class actions in which the amount at issue totals more than $5,000,000, diversity will be met if any member of the plaintiff class is diverse with any defendant.

Question 13

When is diversity determined?

Answer 13

Diversity is determined at the time the case is filed.

Question 14

What makes someone a citizen of a state?

Answer 14

To be a citizen of a state, an individual must be a citizen of the United States and a domiciliary of the state.

Question 15

What makes someone a domiciliary of a state?

Answer 15

An individual is a domiciliary of the state in which she is present and intends to reside for an indefinite period. Someone can only have one domicile.

Question 16

What are some things that are considered when determining domicile?

Answer 16

Whether someone exercise civil and political rights (e.g., registration to vote), pays taxes, owns real and personal property, and is employed in the state.

Question 17

What is the citizenship of a representative?

Answer 17

The legal representative of a minor, an incompetent, or an estate of a decedent will be deemed a citizen of the same state as that minor, incompetent, or decedent.

Question 18

What is the citizenship of a trust?

Answer 18

This is a little up in the air. The old rule was that trusts were deemed to be a citizen of the same state as the trustee. Now it’s possible that diversity can be destroyed if, in a suit against a trust, any beneficiary of the trust is a citizen of the same state as a plaintiff.

Question 19

What is the citizenship of a child?

Answer 19

An unemancipated minor is generally deemed a citizen of the state in which his parents are domiciled. If a minor’s parents are not citizens of the same state, then the child will generally be deemed a citizen of the state of the parent who has custody.

Question 20

How do you determine citizenship in a class action?

Answer 20

Diversity in a class action brought pursuant to Rule 23 will generally be determined by the citizenship of the named members of the class bringing the lawsuit. If the amount in controversy is over $5M, though, it’s only required that any plaintiff be diverse from any defendant.

Question 21

How do you determine citizenship (for a diversity action) for a corporation?

Answer 21

A corporation is a citizen of every state in which it has been incorporated and also of the state where it has its principal place of business. Thus, corporations, unlike individuals, may be citizens of more than one state for diversity purposes.

Question 22

What is a corporation’s principal place of business (when determining citizenship for a diversity action)?

Answer 22

Principal place of business refers to the “nerve center” of the corporation, which is typically its corporate headquarters.

Question 23

What is the citizenship of a liability insurer?

Answer 23

§ 1332(c) makes the insurer a citizen of the state or foreign country in which its insured is a citizen, in addition to the other states or foreign countries where it has citizenship.

Question 24

What is the citizenship or a partnership (or other unincorporated association)?

Answer 24

An unincorporated association, such as a partnership, is considered a citizen of each state in which each of its members is domiciled. There is an exception if “it appears that the representative parties will fairly and adequately protect the interests of the association and its members.”

Question 25

What is the citizenship of an assignee?

Answer 25

When there is a legitimate assignment of a claim, the assignee becomes the real party in interest and its citizenship, as opposed to the assignor’s citizenship, will be determinative.

Question 26

When does a substituted/replacement party need to satisfy diversity?

Answer 26

Substitution calls for the substituted party to step into the shoes of the original party (no diversity required), whereas replacement removes one party to the lawsuit for another party (diversity required).

Question 27

What is the amount in controversy requirement for a diversity action?

Answer 27

The amount must exceed $75,000.

Question 28

What if events after filing reduce the amount in controversy (in a diversity action)?

Answer 28

As long as the original claim was made in good faith, jurisdiction will not be lost.

Question 29

Single plaintiff aggregation

Answer 29

If the action involves only one plaintiff and one defendant, then the total value of the plaintiff’s claims is calculated to determine the amount in controversy.

Question 30

Multiple plaintiff aggregation

Answer 30

If an action involves multiple plaintiffs, then the value of their claims may be aggregated only if the multiple plaintiffs are enforcing a single title or right in which they have a common or undivided interest.

Question 31

Single plaintiff, multiple defendants

Answer 31

The value of a single plaintiff’s claims against each defendant may not be aggregated if the claims are separate and distinct. If the defendants are jointly liable to the plaintiff, then aggregation to meet the amount-in-controversy requirement is permissible.

Question 32

When is supplemental jurisdiction permitted in a federal question case?

Answer 32

Additional claims against the same party can be heard by the court through the exercise of supplemental jurisdiction if the common-nucleus-of-operative-fact test is met.

Question 33

When is supplemental jurisdiction permitted in a diversity case?

Answer 33

When the common-nucleus-of-operative-fact test is met and diversity is not destroyed. There is no amount in controversy requirement.

Question 34

When is a cross-claim allowed between defendants?

Answer 34

A cross-claim may be asserted by a defendant against another defendant or by a plaintiff against another plaintiff if the cross-claim arises out of the same transaction or occurrence as the initial claim, without regard to the amount in controversy or the citizenship of the parties to the cross-claim as long as the court has subject matter jurisdiction.

Question 35

When can a court decline to exercise supplemental jurisdiction?

Answer 35

1. The claim raises a novel/complex issue of state law. 2. The claim substantially predominates over the claims within original federal jurisdiction. 3. All of the claims within the court’s original jurisdiction have been dismissed. 4. If there are other compelling reasons for declining jurisdiction.

Question 36

To where can a case be removed?

Answer 36

A defendant may remove a case to the district court for the district and division in which the state court action is pending.

Question 37

When can a diversity case be removed?

Answer 37

The claim may be removed only if no defendant is a citizen of the state in which the action was filed.

Question 38

When must a defendant file notice of removal?

Answer 38

A defendant who wants to remove a state court action to federal district court must file a notice of removal with the district court within 30 days after receipt by or service on that defendant of the initial pleading or summons.

Question 39

Which parties must consent to removal?

Answer 39

All defendants must consent to removal.

Question 40

What is the time limit on removal based on diversity?

Answer 40

A matter cannot be removed based on diversity of citizenship more than one year after the action is commenced.

Question 41

Once removal proceedings have begun, how long do parties have to demand a jury trial?

Answer 41

Once the action is removed to federal court, the removing party must file the demand within 14 days of filing for removal. The non-removing party also has 14 days to file, but the countdown begins after service of notice of removal. In both cases, if the demand is not filed in a timely fashion, then the right to a jury trial is waived. (If either party exercised the right to a jury before removal, they don’t need to renew the demand).

Question 42

How long does a party have to remand?

Answer 42

A party must make any motion to remand the case on the basis of any defect other than lack of subject matter jurisdiction within 30 days after the filing of the notice of removal.

Question 43

Can a remand order be repealed?

Answer 43

No, unless: 1) There is statutory exception for an order remanding a civil rights case removed pursuant to § 1443. 2) In a class action, the application for review is made to the court of appeals not more than 10 days after the entry of the order.

Question 44

What courts have legislative jurisdiction?

Answer 44

1) The United States Claims Court 2) The United States Court of Appeals for the Federal Circuit 3) The United States Court of International Trade 4) The United States Tax Court 5) The United States Bankruptcy Court