SUBJECT MATTER JURISDICTION & PERSONAL JDX Flashcards
(26 cards)
Define SUBJECT MATTER JURISDICTION
Subject Matter Jurisdiction means the court must have proper jurisdiction over the subject matter of an action. Federal courts have limited subject matter jurisdiction and may only hear cases involving federal questions or diversity of citizenship.
What is a FEDERAL QUESTION?
Federal question Jx. is met when the lawsuit arises under federal law (U.S. Constitution, federal law, treatises, etc.).
WELL-PLEADED COMPLAINT RULE –> The federal question must appear as part of the plaintiff’s cause of action. Federal question Jx. is not met when the federal issue only exists in the defendant’s defense.
What is DIVERSITY JURISDICTION?
Federal district courts have subject matter jurisdiction over actions between citizens of different states and where the amount in controversy exceeds $75,000.
♦ TimingThe AIC is determined at the time the action is filed.
How do you establish an individual’s citizenship for Diversity Jxd?
A person’s citizenship is determined by their domicile.
A person is domiciled in the state in which the person
1) Is physically present in, and
2) Has the subjective intent to remain in. A person may only be a domicile of one state at a time.
NOTES: A United States citizen domiciled abroad is not a citizen of any state and is not an alien, and thus cannot be sued on the basis of diversity jurisdiction.
How do you establish a [CORPORATION’s] citizenship for Diversity Jxd?
A corporation is a citizen of any/all states of incorporation plus their one principal place of business. Thus, a corporation may be a citizen of more than one state.
● State of Incorporation (can be more than one state)
● Principal Place of Business (AKA Nerve Center Test) (can only be one state): A corporation’s principal place of business is wherever their corporation activities are coordinated, typically the state in which the headquarters is located.
Note: If the business is an unincorporated association, such as an LLC, then domicile is every state in which its members are citizens. If the business is unincorporated, use this test and NOT state of incorporation and principal place of business.
MBE/ESSAY TIP: Simply having a warehouse or a single distribution center within a state, will typically not be enough to establish a principal place of business
What is the Subject matter Jdx EXCEPTION for cases involving aliens?
Even if each plaintiff is fully diverse from each defendant, a federal court will NOT have subject matter jurisdiction if both the plaintiff and the defendant are aliens and there are not U.S. citizens present on both sides of the action.
(See July 2016 for this exception). If just the plaintiff OR the defendant is an alien, then US citizenship is only required on one side, not both
Allowed
CA Mex
Mex CA
What is the Good Faith Allegation?
The amount in controversy element is met as long as plaintiff makes a good faith allegation of damages in excess of $75,000. To defeat this element, the defendant must show that there is no legal possibility for a recovery of more than $75,000.
Note: The AIC element is still met if the plaintiff makes a good faith allegation for damages exceeding $75k, but is actually awarded less than $75k.
What is the Aggregation Rule?
There are three circumstances in which claims may be aggregated (added) in order to meet the AIC element (>75K).
● Single Plaintiff Against Single Defendant Rule: A single plaintiff can add herclaims against a single defendant.
● Single Plaintiff Against Jointly Liable Defendants Rule: A single plaintiff can add her claims against multiple defendants, only if the defendants are jointly liable.
● Multiple Plaintiffs with Single Indivisible Injury Rule: Multiple plaintiffs can only add their claims up together if they have a single indivisible injury.
Ex: Both plaintiffs jointly own the car that’s damaged by the defendant.
Note: Don’t fall for the questions where multiple plaintiffs are trying to add their claims against a defendant. In most situations, aggregation will not work because the plaintiffs will have separate injuries, not an indivisible injury.
Update: after reviewing all essays on SMJ and reviewing Adaptibar MBE questions, we have not come across any questions testing aggregate rule #2 or #3.
How does the CA courts establish subject matter jurisdiction?
California courts have general subject matter jurisdiction and can hear any case not within the exclusive jurisdiction of another court. Civil cases are classified as unlimited, limited, or small claims. If a case is misclassified, either party or the court may seek reclassification.
Unlimited civil cases are heard in Superior Court and require an amount in controversy exceeding $25,000. There are no limitations on pleadings, discovery, or relief available, and a claimant can recover any amount.
Limited civil cases are heard in Superior Court and require an amount in controversy of $25,000 or less. There are limitations placed on the use of process and the equitable relief available, and a claimant cannot recover more than $25,000.
Small claims cases are heard in Small Claims Court and require that, if the plaintiff is an individual, the claim is $10,000 or less; or if the plaintiff is a business entity, the claim is $5,000 or less.
What is RE-classification in CA courts?
If P misclassifies a case or subsequent pleadings show that the classification should be changed a party or court on its own motion can move to reclassify the case.
What is Supplemental Jxd?
Supplemental Jxd is used to find jurisdiction for a claim that did not satisfied the Federal Q. or the diversity of citizenship. Supp. Jxd is for a claim that arises out of the same transaction of occurrence as a claim that satisfied federal Q. OR diversity jxd.
Definitions:
●“Original claim” = claim that satisfied federal question or diversity on its own.
●“Supplemental claim” = claim trying to “attach” to the original claim.
●Supplemental jurisdiction can be used for a claim brought by the same plaintiff or a claim brought by a different plaintiff.
Issue-spotting tip:
Where supplemental jurisdiction is at issue, look for subject matter jurisdiction to be at issue. In a diversity case a plaintiff cannot use supplemental jurisdiction to circumvent complete diversity requirements.
Under what Circumstances Supplemental Jxd CANNOT be used?
If the original claim satisfied subject matter jurisdiction under diversity of citizenship, then supplemental Jx. may not be used if doing so will add a party that destroys complete diversity.
●This exception applies to claims by a plaintiff not the defendant. See impleader where defendant, in a diversity jurisdiction claim, can bring in a third-party defendant who shares the same citizenship as the plaintiff.
What points of DISCRETION will the court evaluate to decide on whether a claim will be accepted under Supplemental Jxd?
Even if the general rule is met, the court has the discretion to not exercise supplemental Jx in consideration of the following factors:
● The claim raises a novel or complex issue of state law,
● The state law claim substantially predominates over the federal claim or claims over which the district court has original jurisdiction.
● The district court has dismissed all claims over which it has original jurisdiction, or
● In exceptional circumstances, there are other compelling reasons for declining jurisdiction.
ESSAY TIP: From review of the CA selected sample answers, this discretion rule is rarely discussed when analyzing supplemental jurisdiction. Make a judgment call based on whether you see facts triggering these factors and on how many other prioritized issues you have to discuss on the essay.
What are the requirements to satisfy [REMOVAL]
Removal jurisdiction allows the defendant to have a case originally filed in state court removed to federal court where the case could have properly been brought in either state or federal court in the first place.
● Only defendants are eligible to remove cases.
● Diversity case: In diversity cases, the defendant may not remove to federal court if he is a citizen of the forum state.
● Venue: The case can be removed to a federal district court embracing the state court where the case was originally filed.
● Timing: The defendant must remove no later than 30 days after service of the first “removable” document (typically service of the initial pleading), but never later than one year after the initial filing.
NOTES: The relevant time for determining the existence of federal subject matter jurisdiction is at the time of removal, not the time at which the case was originally filed in state court. Thus, if a plaintiff attempts to amend her complaint after it has been removed to federal court – in an effort to eliminate the basis for federal jurisdiction – that will not destroy the subject matter jurisdiction that existed at the time of removal. It is possible that a plaintiff may name a new, non-diverse co-defendant in a state court action purely in an attempt to destroy diversity. Such a co-defendant is known as a “sham defendant,” and the case may still be removed (and the sham defendant ignored), if that defendant was fraudulently joined, i.e., there truly is no possibility that the plaintiff could recover from that party.
Can Plaintiff [REMAND] a case?
YES - Plaintiffs may seek to remand the case back to state court if the removal was improper for any reason. The plaintiff must move to remand the case within 30 days of the removal, however there is no time limit if the federal court lacks subject matter jurisdiction over the case since that may be raised at any time.
Issue-spotting tip:
Where removal and/or remand are at issue, look for subject matter jurisdiction to be at issue as well.
What are the 4 ways in which Personal Jxd is found under the [TRADITIONAL BASIS]
- Consent: A party may consent to the forum state
Note: Look for D signing a contract that includes a clause for consenting to jurisdiction in the forum state. Look for D making a “general appearance.”An appearance to file a motion for lack of PJ will not be considered consent.
- Domicile: A person’s domicile is the state in which he has physical presence and the subjective intent to remain.
- Service in Forum State: In any state in which the defendant is voluntarily present when served notice of the lawsuit.
Exception: D was present and served while in the forum state for a court appearance for another case, or, he was fraudulently coerced into the state.
Notes:
* This is often referred to as “Tag” or “Transient” jurisdiction.
* Corporations cannot be subject to Tag jurisdiction.
- Waiver of Service
DEFINE [PERSONAL JDX]
The court must have proper jurisdiction over the parties to an action without violating due process. The court may have personal Jdx over D under TRADITIONAL BASIS or LONG ARM STATUES
What is the LONG ARM STATUES?
Is the mechanism that gives a state the power to assert jurisdiction over a nonresident. The courts will look to their state’s statute typically called a long arm statute to establish personal jurisdiction over non-resident defendants.
States adopt either:
1) A general long arm statute, or
2) A specific long arm statute
What is the GENERAL LONG ARM STATUTE
Most states, including CA, adopt a general long arm statute. A general long arm statute reaches as far as the constitutional limits reach. Therefore, if the constitutional requirements are met, then a general long arm statute is met.
Notes:
- Look out for language like, “The state’s long arm statute reaches as far as due process allows.” “The state authorizes jurisdiction over non-resident defendants on any basis not inconsistent with the Constitution of the United States.”
- A state always has a long arm statute. If the fact pattern gives no language of a general or specific statute, then tell the grader that it is safe to assume we are dealing with a general long arm statute
[ UNDER THE GENERAL LONG ARM STATUTE WE MUST DETERMINE IF THE CONSTITUTIONAL REQUIREMENTS ARE MET –> IF THEY ARE NOT MET THEN GENERAL LONG ARM FAILS ]
What is the SPECIFIC LONG ARM STATUTE?
Some states adopt a specific long arm statute. A specific long arm statute lays out specific situations that if present, the statute is met. Even if a state has a long arm statute that is met, the constitutional requirements must still be met.
What are the [CONSTITUTIONAL REQUIREMENTS ] To evaluate on a long arm statute?
Even if PJ is established, the court must meet the constitutional requirements for asserting PJ. Asserting PJ over D must not offend the traditional notions of fair play and substantial justice. The relevant factors are minimum contacts and fairness.
How will the court assess if a non-resident has minimum contacts in the forum state?
The defendant must have minimum contacts with the forum state. Minimum contacts require a showing of:
1) Purposeful availment and
2 )Foreseeability
How to satisfy the [ Purposeful Availment ] requirement to evaluate minimum contacts to a forum state?
● General Rule To satisfy this element: D must have purposefully availed himself of the benefits and protections of the forum state.
● Factors for proving purposeful availment: The presence of specific or general jurisdiction makes it more likely that purposeful availment is met and that asserting jurisdiction is constitutional.
- Specific Jurisdiction–Claim is Connected to Forum State: Specific jurisdiction is met if the conduct that gave rise to the claim occurred in the forum state.
- General Jurisdiction –D is Connected to Forum State: General jurisdiction is met if D had systematic and continuous contact with the forum state to the extent that D “essentially felt at home” in the forum state.
What are the Rules for Special Situations to prove purposeful availment?
- Stream of Commerce Cases: A defendant must 1) Place its product into the stream of commerce directed at the forum state, and 2) Engage in conduct purposefully directed at the forum state.
Simply placing an item into the stream of commerce, without any further action, is insufficient. However, placing an item in the stream of commerce coupled with some OTHER ACTS that show the intent to serve a particular state, for example, by modifying its product to comply with state law, by maintaining sales offices within the state, by maintaining repair capabilities in the state, etc., is a sufficient basis for personal jurisdiction.
- Internet Cases–“Zippo Test”
a. Active websites = Likely purposeful availment
b. Interactivewebsites= Maybe. Depends on circumstances
c. Passive websites = Likely no purposeful availment
