Bar Prep - NY Federal Jurisdiction Flashcards
What is subject matter jurisdiction?
Power over the case.
What are the two main types of cases that can be filed in federal court?
(1) Diversity of citizenship or
(2) Federal question
What are the two requirements of diversity and alienage cases?
(i) Case is either
(a) between “citizens of different states” (diversity) OR
(b) between a “citizen of a state and a citizen of a foreign country (alienage)
AND
(ii) Amount in controversy exceeds $75,000
What is the complete diversity rule?
There is no diversity of citizenship jurisdiction if ANY PLAINTIFF is a citizen of the same state as ANY DEFENDANT.
P (Spain) sues D (Canada) in federal court, is this ok?
NO.
No alienage bc its not btwn citizen of a state and a alien.
No diversity of citizenship bc not btwn citizens of different states.
P (US citizen domiciled in France) sues D (NY) in federal court, is this ok?
NO.
No alienage bc P is not an alien.
No diversity of citizenship? No bc P is not a citizen of state.
What is the state of citizenship for a natural person?
United State of her domicile.
Can a person have more than one domicile at a time?
No.
How do you establish a new domicile?
(1) Physical presence in the state AND
(2) The intent to make that your permanent home.
P (DC) sues D (NY). After filing, P becomes a citizen of NY - is this still diversity?
YES. Also, remember….
(i) Treat DC as a state
(ii) Test for diversity occurs when the case IS FILED.
What is the citizenship of a corporation?
(i) state or county where incorporated AND
ii) State or country where has its principle place of business (PPB
True or False: Corporations, unlike humans, can have two citizenships
True.
What is a corporations principal place of business?
Where managers direct, coordinate and control corporate activities.
What is the rule regarding citizenship of unincorporated associations?
Use the citizenship of all members (that includes general and limited partners).
XYZ Partnership has partners who are citizens of NY, NJ, and PA — the partnership citizenship = NY, NJ and PA.
How is the citizenship of decedents, minors or incompetents determined?
Citizenship of decedent, minors or incompetents governs, not their representatives.
In addition to the complete diversity rule (or alienage), P’s good faith claim must exceed _____?
$75,000
Value must come from claim itself (not interest/fees)
If P in a diversity claim actually recovers less than $75,000, jurisdiction is OK. But what might happen to P?
P may have to pay D’s litigation costs.
What is aggregation?
When P must add two or more claims to meet the amount in controversy requirement.
Can a P aggregate two claims to meet the amount in controversy requirement?
YES – we can aggregate the claims of one P vs. one D.
P sues D1 for $70,000 and D2 for $6,000 in the same case. OK?
NO - P cannot aggregate these claims.
What if P sues for an injunction to force D to remove a portion of D’s house that encroaches on Ps property - how do we determine the value of the injunction?
Apply both analysis:
(a) P’s Viewpoint –> Does this encorachment decrease value of Ps property by more than $75,000
(b) D’s Viewpoint –> would is cost D more than $75,000 to comply with the injunction.
True or False: Federal courts will issue a divorce, alimony or child custody decree; they also will not probate a decedent’s estate.
FALSE - Federal courts will not issue a divorce, alimony or child custody decree.
What are federal question cases?
Complaint must show a right or interest founded substantially on a federal law. The claim must “Arise under” federal law.
What is the well-pleaded complaint rule?
The determination of whether a well-pleaded complaint was federal – ask whether the P is enforcing a FEDERAL RIGHT.
What is supplemental jurisdiction?
Works only after case is already in federal court.
Used for additional claims in that case and that claim does not meet diversity or FQ.
What is the test for supplemental jurisdiction?
Claim that we want to get into federal court must share a “Common nucleus of operative fact” with the claim that invoked federal subject matter jurisdiction.
When is the test for supplemental jurisdiction always met?
When the claim arises from the same transaction or occurrence as the underlying case.
What is the limitation regarding supplemental jurisdiction?
In a DIVERSITY case, the PLAINTIFF cannot use supplemental jurisdiction to overcome a lack of diversity.
So a non-federal, non-diversity claim can be heard in federal court if it meets “the test” UNLESS it is
(a) Asserted by a P
(b) In a diversity of citizenship (not FQ) case AND
(c) Is against a citizen of the same state as the P.
When can a D sued in state court be able to “remove” the case to federal court?
One way street - transfers a case ONLY from a state trial court to federal trial court.
When – within 30 days AFTER SERVICE
What is the general rule regarding what kind of cases can be removed?
One that would meet the requirements for diversity of citizenship or federal question.
What are the two exceptions to removal that apply only to diversity cases (not FQ)?
(1) No removal if any D is a citizen of the forum (instate D)
And
(2) No removal more than 1 year after the case was filed in state court.
What is the procedure for removal?
D files notice of removal in federal court, stating grounds of removal, signed under rule 11, attach all documents served on D in state action, copy all to adverse parties, file copy of notice in state court.
What result if the removal was procedurally improper?
P moves to remand to state court, must do so within 30 days of removal.
True or False: D who files a permissive counterclaim in state court probably waives right to removal.
True.
Filing a compulsory counterclaim in state court probably does not waive the right to remove.
What is the basic Erie Doctrine rule?
In diversity cases, the federal court must apply state substantive law.
What are the key steps of the Erie Doctrine analysis?
Step 1 –> Is there a federal law on point that directly conflicts with state law? (If so, apply federal law).
Step 2 –> If no federal law on point, ask is this issue one of the “easy ones?”
Step 3 –>If no federal law and not easy, must follow state law… based on 3 tests.
Under an Erie Doctrine analysis, what are the “easy ones?”
(a) Elements of a claim or defense
(b) Statute of limitations
(c) Rules for tolling statute of limitations
(d) Conflict (or choice) of law rules
These are easy because SCOTUS has declared them substantive.
What are three tests the court can turn to if the judge wants to ignore state law (and apply federal law under Erie)?
(1) Outcome Determinative - would applying or ignoring state rule affect outcome - if yes, probably substantive and should use state rule.
(2) Balance of Interests - does either fed. or state system have strong interest in having rule applied
(3) Avoid Forum Shopping - if fed. court ignores state law, would it cause parties to flock to fed. court? If so, should probably apply state law.
What is the basic idea regarding venue?
SMJ told use we can take case to federal court, VENUE tells us exactly which court.