Are we in the right court?

Question 1

What is Doctrine of Res Judicata?

Answer 1

Precludes parties from relitigating the same cause of action (claims relating to same conduct, transaction or occurrence) when a valid final judgement was entered.

It can have 4 different effects: merger, direct estoppel, bar collateral estoppel.

Question 2

Collateral Estoppel

Answer 2

Precludes parties to a prior action from litigating in a subsequent action, any factual issue that was actually litigated and essential to a valid final judgement, in the prior action.

Question 3

Requirements for Collateral Estoppel

Answer 3

(i) the parties to the prior and subsequent proceedings must be the same.

(ii) the factual issue sought to be litigated, must have been litigated in the prior action.

(iii) the factual issue must have been essential to the judgement in the prior proceedings

(iv) the prior action must have resulted in a judgement that is valid, final, and against the party whom the doctrine is sought to be applied.

Question 4

Subject Matter Jurisdiction

Answer 4

Three types of Subject Matter Jurisdiction

1) Diversity

2) Federal Question

3) Supplemental Jurisdiction

Question 5

Diversity Jurisdiction

Answer 5

Subject matter jurisdiction based on diversity exists when:

1) Complete Diversity - Every Plaintiff is diverse from every defendant

2) Amount of controversy exceeds $75,000.00

Question 6

Where is a corporation a citizen of?

Answer 6

Every U.S. state in which it is incorporated in

and the one U.S. state in which it has it’s principal place of business.

Question 7

Federal Question

Answer 7

Exists when the claim arises under Federal Law, the U.S constitution or a Federal Treaty

• Plaintiff must be enforcing a federal right
• Federal question must be present on the face of a well pled complaint.
• Raising a defense under federal law is not sufficient.

Question 8

Personal Jurisdiction

Answer 8

Jurisdiction over the parties.

A Virginia court may exercise personal jurisdiction over a Defendant id the long arm statute of Virginia and the U.S. constitution are satisfied.

Question 9

Virginia Long Arm Statute

Answer 9

A court “may exercise personal jurisdiction over a person who acts directly or through an agent, as to cause of action from…transacting business in the commonwealth.”

Long arm statute extends it’s reach to a single act of business, if that act is significant and demonstrates purposeful activity in VA.

Examples:
1) Causing tort or injury in the state a VA by an act or omission inside the state. I punch Adam in the face in our apartment in Alexandria.

2) Causing tort or injury in the state of VA through an act or omission outside of the state. Ex. A car was built in Ohio and the airbag malfunctions, causing me injury in VA.

3) Contracts to supply goods or services in VA

4) Has an interest in, uses or possesses realty in VA

5) Transacts any business in VA. VA is a “single transaction” state. There is PJ even from just one business contact in VA.

6) Causing injury in VA by breach of warranty where sale is out of state.
- ok if seller could reasonably foresee effects in VA, does business in VA or derives substantial revenue from goods consumed in VA

Question 10

PJ - Constitutional Requirements

Answer 10

In order to satisfy the constitutional due process requirements the Defendant must have minimum contacts with the forum state that would be fair and reasonable.

Prong 1: Minimum Contacts:
(a) General Jurisdiction: contacts so substantial and of such nature that the D is essentially at home.
- For an individual, this would be their domicile.
- For a corporation they are “at home” where they are incorporated or headquartered.

(b) Specific Jurisdiction: the connection between the forum state and underlying controversy and lawsuit must arise/relate to the Defendant’s contact with the state.

Prong 2: Fair and Reasonable.
- The suit must not offend the traditional notions of “fair play and substantial justice.”

Question 11

Supplemental Jurisdiction

Answer 11

Allows a party to bring a state claim into Federal Court that does not meet the requirements of SMJ on it’s own.

Requirements:
1) the claim must arose from a common nucleus of operative fact as the other claims the court has SMJ over (the claims must arise from the same transaction or occurrence.

Question 12

What cases can VA state courts hear?

Answer 12

Any cases except those with exclusive federal jurisdiction (federal anti-trust, patent infringement, bankruptcy)

Question 13

How many trial courts in VA?

Answer 13

2. Circuit Court & General District Court

Question 14

What cases can circuit courts hear?

Answer 14

Any civil action, except for those which exclusive jurisdiction is vested in another court.

Amount in controversy must be more than $4,500.00.

Question 15

General District Court

Answer 15

SMJ in GDC is statutory and basically for causes of action at law and not equitable claims.

Characteristics:

1) Less formal than CC. No formal pleadings or discovery.

2) Never get a jury in GDC

3) Injunctions cannot be granted. (Exception - can get an injunction to enforce FOIA)

4) Can hear actions at law in torts or contracts or actions for detinue (recovery of personal property or value thereof) only if amount in controversy is less than 25K.

5) Can hear attachment cases for personal property if amount in controversy is less than 25K. (If attachment involves realty, must go to CC).

6.) Can hear interpleaders. As long as amount in controversy is 25K or less.
- Exception - Can hear interpleader for any amount even more than 25k in cases involving earnest money deposit in land sales K.

7.) Can hear claims for rent due or to oust Def. from property. No 25K cap.

8.) Can grant distress warrants (creditor seizes property) regardless of the amount.

9. Has exclusive SMJ over cases where recovery is less than $4,500.00

Note: Each GDC has a small claims court with concurrent jurisdiction over claims that do not exceed 5k.

Question 16

Appeals from GDC to CC

Answer 16

There is an absolute right to appeal a case from GDC to CC if the amount involved is more than $20.

Steps to appeal final judgement to CC:

1) file written notice of appeal with clerk of GDC within 10 days of judgement

2) post bond and pay writ tax in GDC within 30 days of judgement. (10 days if unlawful detainer case)

Question 17

What does CC do with the appealed GDC case?

Answer 17

Hears the case de novo. - New trial in CC. This is why GDC is a court of no record.

Question 18

GDC enters a final judgement, Plaintiff moves to appeal to CC. Now may Plaintiff seek leave to amend to increase claim to over 25K?

Answer 18

No. Plaintiff can only increase the claim to over 25K if Defendant is the one appealing the case to CC.

Question 19

Will VA enforce a contractual provision that says a case must be brought in a particular place (forum selection clause)?

Answer 19

Yes. A contractual provision designating a forum for contract disputes is not against public policy, and is enforceable.

These contractual provisions on their face are valid and should be enforced, unless the party challenging it’s enforcement can establish that the provision is unfair or unreasonable or that they were affected by fraud or unequal bargaining power.

Question 20

Category A - Venue

Answer 20

Cases where the VA statute sets out the appropriate place for trial.

1) Local Actions: Actions for the recovery partition, or judicial sale of land, to establish boundaries of land, for unlawful entry onto land, or anything else involving land, venue is appropriate where the land or any part of it lies.

2) Wills: Where the will was probated. If not yet probated then where it could have been offered for probate.

3) Writs: For mandamus (e.g forcing an officer to perform ministerial act), prohibition (e.g. stopping lower court from exercising jurisdiction), or certiorari (e.g. for review of zoning decisions), lay venue at the place for which the writ relates is located.

4. Injunctions: Where the subject proceeding or judgement is pending, or was rendered, or where the subjecy act is to be done, is being done, or is apprehended to be done.

Question 21

Category B Venue - Anything not included in category A.

Answer 21

1) Where Defendant resides or has place of employment

2) Where the cause of action or any part of it arose.

3) Where Defendant has a registered office or appointed agent.

4) Where Defendant regularly conducts substantial business activity (but case itself must have some practical nexus with the place); or

5) In case to recover personal property - Where property is located.

6) In case against a fiduciary appointed under court order, where fiduciary is qualified.

Question 22

What happens if case is filed in an improper venue?

Answer 22

Court will transfer the case to a proper venue. (WILL NOT DIMISS CASE FOR IMPROPER VENUE)

Question 23

Transferring from a proper venue?

Answer 23

If a case is already in a proper venue, it can be transferred to another venue on Motion by either party, as long as the court finds good cause for transfer.

Factors relevant to good cause: the court weighs (1) plaintiff’s choice of forum against things like (2) agreement of parties (3) avoidance of substantial inconvenience to parties or witnesses (4) delay in parties seeking transfer. etc.

Decision to transfer is in court’s discretion.

Note: VA Supreme Court has found that the trial court abused discretion when it refused to transfer case from Place where Def. had principal place of business to place where cause of action occurred, plaintiff worked, and witnesses were located.

Question 24

Forum Non Conveniens

Answer 24

A court may dismiss an action if the cause of action:
(a) arises out of state
(b) is brought by a non resident of VA and
(c) there is a more convenient venue outside of VA

The court must find (1) good cause and (2) that the other court has jurisdiction.