Are we in the right court? SMJ

Question 1

State SMJ

Answer 1

a. State court can hear any kind of case. General SMJ.

Question 2

Federal court— 2 types of SMJ

Answer 2

FQ or diversity

Question 3

Diversity (including alienage) 2 requirements

Answer 3

1. case is either between citizens of different states OR between a citizen of a state and citizen of foreign country (alienage)
2. and
3. amount in controversy > $75k. not = to 75k, must be 1 penny over.

Question 4

What is the amount in controversy requirement

Answer 4

a. whatever the π claims in good faith is OK unless it is clear to legal certainty that π cant recover more than $75k. for ex can’t throw in punitive damages if clear to legal certainty that this claim doesn’t include punitive damages to get your claim to the $75k minimum.
b. doesn’t matter what π actually wins. only what π claims.
c. sometimes when π wins, still has to pay ∆’s “costs” (different from atty fees) include filing and discovery and lit expenses
d. each party pays own atty fees unless some law provides for fee shifting

e. aggregation – can aggregate 2 or more claims to meet the amount required of any one π against any one ∆. even if factually unrelated.
ii. cannot aggregate if the claim is of different πs
f. for joint claims—use the total value of the claim. even if multiple ∆s for joint claim.
g. if suing for equitable relief—two tests
i. π viewpoint: does the claim decrease the value of π’s item by more than $75k
ii. ∆ viewpoint—would it cost ∆ more than $75k to fix what π needs.

Question 5

What is complete diversity?

Answer 5

a. complete diversity: NONE of the πs can be a citizen of the same state as ANY ∆.

Question 6

What is alienage jdxn (qualifies for diversity)

Answer 6

alienage” jurisdiction- must have an alien one side of the v. suing a US citizen on the other side of the v.

1. alienage ≠ 2 foreign citizens suing each other
   a. this must be in state court
2. no diversity if between a citizen of a state and an alien who has permanent residence and is domiciled in the same state as the US citizen
   a. Pierre (French living in CA) cannot sue Josh (CA citizen) in fed ct.

iii. also if a US citizen lives abroad, cannot get alienage jdxn and get into federal court.
1. no alienage because not an alien
2. no diversity jdxn because not a citizen of a US state
3. must go to state court
a. this means if you ever sue a US citizen living in a foreign country, you can never get diversity jdxn, must either file in state court or use SMJ!!

Question 7

What is the citizenship of a natural person

Answer 7

= the US state of her citizenship. Domicile test from PJ

i. everyone has a domicile, you keep it until you change it
ii. can’t have more than one domicile at a time

iii. to establish new domicile
1. physical presence AND
2. the intent to make that your home.
a. depends on all relevant factors.
b. taking job, buying house, joining orgs, registering to vote, qualifying for instate tuition
iv. Test for diversity when the case is filed doesn’t matter if people change domiciles after case filed.

Question 8

What is the citizenship of a corporation

Answer 8

c. Citizenship of a corporation—
i. every state or country where incorporated AND
ii. the one state or country with PPB—where managers direct, coordinate and control corp activities. usually the HQ

Question 9

What is the citizenship of an unincorporated association

Answer 9

d. Citizenship of an unincorporated association (like partnership or LLC or union)—citizen depends of citizenship of all members
i. doesn’t matter where formed or PPB
ii. INCLUDES the limited partners’ citizenship

Question 10

What is the citizenship of decedents, minors or incompetents

Answer 10

e. Citizenship of decedents, minors or incompetents is what matters, NOT the representative’s citizenship.

Question 11

Exclusions for diversity or alienage case

Answer 11

even if requirements for a diversity or alienage case are met, fed courts decline to hear some
a. divorce, alimony, child custody, and to probate an estate.

Question 12

Federal question jdxn

Answer 12

ii. Federal Question – the claim “arises under” federal law
1. citizenship/ amount in controversy doesn’t matter
2. “well pleaded complaint” – not enough that a federal issue is raised by the complaint. the claim itself must arise under federal law. Is π enforcing a federal right?
3. Exs.: patent, bankruptcy, fed securities and antitrust

Question 13

How do you get supplemental jdxn?

Answer 13

the claim just must share a “common nucleus of operative fact” with the claim invoking SMJ. is it the same T/O

Question 14

Limitations on SMJ

Answer 14

If the case came to fed ct on FQ jdxn, can ALWAYS introduce a supplemental claim that is from the same T.O

BUT!!!!!!!! if the case got in under diversity, the PLAINTIFF cannot join a claim under supplemental jdxn.

i. DEFENDANTS are allowed to join claims under supplemental jdxn in diversity cases.
1. exception: when there are multiple πs and one does not meet the amount in controversy requirement.
a. Hypo P-1 (VA) and P-2 (VA) sue D (PA) on state-law claims. P-1’s claim is for $100,000. P-2’s claim arises from the same T/O, and is for $50,000. P-1’s claim meets the requirements for diversity, so gets the case into federal court. But P-2’s claim does not, because even though citizenship is OK, the claim does not exceed $75,000. Can the claim by P-2 invoke supplemental jurisdiction?
b. yes, because although it’s a supplemental jdxn claim by another π in a diversity case, it meets the exception
c. any other time a π has an additional claim in a diversity case for the π to add the claim, it must meet diversity or FQ, NOT supplemental jdxn.

Question 15

Is supplemental jdxn mandatory?

Answer 15

NO! : court can decline supplemental jdxn if

1. state law claim is complex or would predominate the case
2. OR claim that got the case into federal court is dismissed early in the case

Question 16

What is Removal

Answer 16

transfers from state court to federal. ∆ is sued in state court and may remove it to fed ct. if removal was improper, the federal court can remand the case back to state court

Question 17

When can you remove

Answer 17

∆ must remove within 30 days of service

Question 18

Who must join in the removal

Answer 18

b. All ∆s who have been served must join in the removal.

i. the 30 days starts anew with service on another ∆

Question 19

What cases can be removed?

Answer 19

i. π can never remove, even if served with counterclaim

ii. ∆ can remove a case that meets the requirements for diversity or FQ.
1. exceptions if removing on the basis of diversity: can’t file for removal if you were sued in your home state court and more than 1 year has passed.(this may be the case if the πmakes a permissive amendment or something way after 30 days of the original pleading, and amends to show a FQ, or amends way more than 30 days after to add another ∆, but a year has passed since the case has been filed, then the in-state ∆ can’t remove a diversity case)
2. BUT the case might become removable if the claim against the instate ∆ is dropped
a. For ex, P voluntarily dismisses the claim against D-2. Can D-1 now remove? Yes – within 30 days of service of the dismissal of D-2.
b. exception: if the federal judge finds that π acted in bad faith by originally joining ∆2 to prevent removal

Question 20

Where do you remove to?

Answer 20

∆ removes to the federal district embracing the state court where the case was filed.

Question 21

How does ∆ remove a case

Answer 21

do not need permission from federal or state courts

i. file a “notice of removal” in federal court stating grounds of removal, which means SMJ, diversity or FQ
ii. must attach al documents served in state action, a copy of the notice of removal on adverse parties. Then a copy of the notice of removal in state court
iii. if a claim doesn’t exceed amount in controversy $75k requirement, but if there’s diversity, the ∆ CAN remove if there isn’t a state limit on recovery and ∆ claims that the amount in fact exceeds $75k. then fed court will hold hearing with burden on ∆ with preponderance to show it does exceed $75k.

Question 22

How does πmove for remand if she thinks removal was improper

Answer 22

f. if π thinks case shouldn’t be removed, she moves to remand to the state court
i. if π thinks removal was improper for some reason other than lack of SMJ (for ex ∆ didn’t attach relevant papers to notice of removal, or there was an instate ∆), π has 30 days to make notice to remand
1. if not, waiver of right to have case remanded.
ii. if π thinks removal was improper because the fed ct lacks SMJ, can move to remand at any time. never waived.

Question 23

What law applies? What is erie/ what kinds of cases does it apply

Answer 23

for diversity cases ONLY (duh FQ has its own federal law), the federal court must apply the substantive law of the state, including conflict of law rules. BUT the fed courts apply federal procedure (duh they’re in fed ct)

Question 24

Erie Steps

Answer 24

a. Step 1: is there some federal law (constitution, statute, FRCP or FRE) that directly conflicts of the state law? if so, apply the federal law as long as it’s valid.
ii. probably met if the Rule is “arguably procedural”

b. Step 2 : if no federal law on point, then apply state law if the issue is substantive. four issues are clearly substantive
i. elements of a claim or defense
ii. statutes of limitations
iii. rules for tolling statutes of limitations
iv. conflict or choice of law rules.

c. step 3: if there is no federal law on point and the issue is not one of the four listed, the federal judge must determine whether the issue is substantive. factors:
i. Outcome determinative—would applying or ignoring the state rule affect the outcome – if so probably substantive
ii. Balance of interests—does either the federal or state system have a strong interest in having the rule applied?
iii. Avoid forum shopping – if the federal court ignores state law on the issue, will it cause parties to flock to federal court—if so apply stat law

d. Interpreting state law—fed ct must determine what decision the highest court of the state would if confronted with the issue

Question 25

Federal common law

Answer 25

no General federal common law. some areas where federal courts are free to make up common law

a. for ex. congress passes a statute with a new claim but omits SOL. fed courts can fill the gap
b. other ex: international relations, admiralty, and disputes between states, right to sue federal officer for violation of federal rights.

Question 26

Can you have supplemental jurisdiction even if over another ∆?

Answer 26

iv. CAN have supplemental jdxn over the claims of another ∆ who doesn’t meet amount in controversy req but does have common nucleus of operative fact.

Question 27

Under Erie, which state law do you apply?

Answer 27

THE STATE WHERE FED CT IS LOCATED, including that state’s choice of law rules. So it may end up applying a different state.

Question 28

Is removal ever mandatory

Answer 28

g. Cases which have FQ jdxn SHALL be removable WITHOUT REGARD to citizenship or residence of the parties.
i. but venue still proper in state court—just means that if ∆ asks for it, must be granted