Chapter 1: SMJ and PJ

Question 1

What is the NC Appellate Division made up of?

Answer 1

Supreme Court and Court of Appeals

Question 2

What is the NC Trial Division made up of?

Answer 2

Superior Court and District Court, dist ct also has small claims ct.

Question 3

What does the Supreme Court of NC hear?

Answer 3

Highest ct in NC

Reviews appeal of lower state courts on any matter of law or legal inference, legal procedures and judicial interpretations of law

Has the power to issue remedial writs

Question 4

NC Appeals of right to SC

Answer 4

Appeal of right in a civil case if there was a dissent in the court of appeals.

Substantial state or federal constitution question

Any decision of a court that holds an act of the NC General Assembly is facially invalid for violating the NC Constitution or federal law

Final judgments in complex business cases and certain interlocutory orders of a business court

Question 5

NC SC Discretionary review

Answer 5

A party may petition SC review of an adverse decision by ct of appeals

Can review a case directly from the trial court on its own motion or upon request of a party

Question 6

NC Court of Appeals

Answer 6

Intermediate appellate court: errors of law/legal procedure

All civil cases appealed from the superior and district courts

Direct appeals from certain state administrative agencies

Power to issue remedial writs necessary to give it general supervision and control over the proceedings of lower courts

Question 7

NC Superior Court

Answer 7

Trial court of general jx in NC

Cases more than 25K

All constitutional cases

Cases with wills, trusts, and administration of decedents estates

Question 8

NC District court

Answer 8

Civil actions up to 25K

Family law

Juvenile cases involving children under 18

Appeals go to the Court of Appeals

Question 9

NC Small Claims court

Answer 9

Part of District court

Handles civil cases under 10K

Question 10

NC transfer between trial courts

Answer 10

If an action is brought in an improper forum, any party may move to transfer

The court may also order a transfer sua sponte

Question 11

Federal SMJ

Answer 11

General ability to hear a case

Question 12

Federal Question

Answer 12

District court has original jx over civil actions arising under the Constitution, laws and treaties of US.

State and federal ct have concurrent jx unless Congress expressly says federal court has exclusive jx.

Extends to express, implied, or sub issues of federal law

FQ must be on the face of the complaint

No amount in controversy requirement

Question 13

Diversity Jurisdiction

Answer 13

Citizens of different states, or state and foreign state and amount in controversy over 75K

Complete diversity required

Individual: citizen of where domiciled, only 1 domicile at a time, determined when action commenced. Present intent to remain indefinitely.

Corporation: state of inc. and principal place of business, “nerve center”

Creating/Destroying diversity: assignment of claims, failure to name an indispensable party, voluntary change of sate citizenship, replacement of parties

Question 14

Amount in controversy requirement

Answer 14

(Ps GF assertion), unless legal certainty it can’t be recovered, over 75K

Aggregation: multiple Ps undivided interest may be aggregated

Permissive counterclaims must be over 75K

Compulsory counterclaim does not need to meet amount in controversy

Question 15

Supplemental Jx: FQ

Answer 15

Federal court can exercise supplemental jx if claim arises out of the common nucleus of operative fact

FQ: can add claims against same party, can be heard through supplemental jx if common nucleus of operative fact.

Question 16

Supplemental Jx: DJ Permissive joinder

Answer 16

Permissive joinder: addition of P asserting additional claim, can’t violate complete diversity, doesn’t have to satisfy jurisdictional amount independently.

Question 17

Supplemental Jx: Counterclaim

Answer 17

Compulsory counterclaims don’t need to satisfy jx amount

Permissive counterclaims must satisfy jx amount and complete diversity

Question 18

Supplemental Jx: Cross-claims

Answer 18

Okay if they arsie out of same tx/occurrence as long as court has SMJ, don’t have to satisfy DJ requirements

Question 19

Federal Removal jx

Answer 19

D may generally remove a case from state court to federal court having SMJ

Generally determined by the pleadings when petition to remove is filed

DJ must exist at time of filing original action as well as time of notice of removal

If removal is based solely on DJ, claim may be removed only if no D is a citizen of the state in which the action was filed

FQ: if FQ claims are joined w/ claims that aren’t independently removable, entire case may be removed

Question 20

Notice for federal removal

Answer 20

D must file notice w/in 30 days of receipt or service on D of initial pleading

FQ: only Ds against whom federal claim is filed must consent/join removal

Removal based on DJ: can’t occur more than 1 year after the action is commenced, unless P acted in BF.

Question 21

Remand

Answer 21

Lack of SMJ: any time before final judgment is entered

Other reasons: motion to remand for any defect other than SMJ must be w/in 30 days after filing notice for removal

Question 22

Grounds for Federal personal Jx

Answer 22

In personam
In Rem
Quasi in rem

Federal court looks at long arm statute to determine PJ

Must comport w/ Due Process, “minimum contacts” with the forum state and jx would be fair and reasonable

Defenses: lack of jx, insufficient service of process or services, must be asserted in reponsive pleadings, or motion before submitted. Failure to object waives objection.

Question 23

NC in personam jx

Answer 23

Present w/in the state;

Domicile w/in the state;

Incorporation w/in the state; or

Substantial activity w/in the state

When specifically granted by statute.

Question 24

Federal in personam jx

Answer 24

G/R required when judgment would impose personal obligation on D

Voluntary: D voluntarily present in forum state & served there

Domiciled in state,k or by statute

Consent: express consent by K or impliedly through conduct; or appearance once action is brought (unless only appearing to contest jx)

Long arm statute: authorized PJ over nonresidents conduct in the state when coports w/ Due Process

Question 25

NC pj for torts

Answer 25

The action is for injury to person or property for wrongful death, and it arises out of an act or omission committed w/in the state. PJ even if the injury takes place outside the state.

The action is for wrongful death or injury to person or property that occurred in the state and the action arises our of an act of commission outside the state.
State courts have PJ if at the time of the injury:

D solicited or carried on services w/in the state;
Products, materials, or things processed, serviced, or manufactured by the defendant were used or consumed w/in the state in the ordinary course of business; or the D sent unsolicited bulk commercial e-mail into or w/in the state illegally or in violation of email server’s provider’s policy.

Question 26

NC: pj for local services, goods, or K

Answer 26

State courts have pj over actions that:

Arise our of a promise by D to perform services or pay for services performed w/in the state;

Services actually performed w/in the state by D;

Promise by D to deliver or receive w/in the state, or ship from state goods, documents of title, or other things of value

Relate to goods, documetns of title, or things of value shipped from sate by P to D; or

Relate to goods, documents of title, or other things of value actually received by P in the stat from the D through a carrier w/out regard to where delivery to carrier occurred

Question 27

Due Process requirements for PJ

Answer 27

Nonresident D must have minimum contacts w/ forum state such that action doesn’t’ offend traditional notions of fair play and substantial justice.

Minimum contacts: purposeful availment: D purposeful and substantial such that D could foresee being taken to ct there

Question 28

NC jx for local property

Answer 28

Jx over claims that arise out of: a promise made by D regarding ownership, control, or possession of property w/in the state, regardless of where the promise is made;

A claim to recover a benefit derived by D through use, ownership, control, or possession of tangible property w/in the state;

A claim that D return, restore, or account to P for property that was w/in the state when the D obtained possession or control

Question 29

NC: director or officer of domestic corp.

Answer 29

In personam jx over a d who is or was an officer or director of a domestic corp or the corp’s conduct while the D was an officer or director.

Question 30

Insurance or insurers

Answer 30

NC courts have in personam jx over a D when the action arises out of an insurance K, regardless of where entered into if P was a resident of NC when event occurred or the event giving rise to claim occurred in NC regardless of where P resided.

Question 31

NC Marital relationship jx

Answer 31

In personam jx over an action that arises out of marital relationship w/in the state, even if D no longer resides in the state.

Question 32

NC jx over things

Answer 32

In rem or quasi in rem over:
Real property
Divorce/annulment
Attachment of property

Catchall: NC have quasi-in-rem jx in any other action in which such jx may be constitutionally exercised

Question 33

Can an action for denial of a motion to dismiss for lack of jx be immediately appealed?

Answer 33

In NC, yes!

In federal court, no!

Question 34

Specific jx

Answer 34

C/a arises out of/closely related to D’s activity w/ forum state even if only contact.

Question 35

General jx

Answer 35

D “at home” in forum state

Question 36

Imputed contacts

Answer 36

Partnership: each partner is generally an agent of the partnership

Corporation: out of state corp ctc w/ forum state doesn’t automatically establish jx over wholly owned subsidiary unless parent company’s alter ego or acting as it’s agent.

Employee/agent: Nonresident employers agents/employees imputed to employer if acting w/in scope of employment

Fair play and substantial justice: once min ctc est. a court must sill examine facts to determine if maintenance of the action would “offend traditional notions of fair play and substantial justice. Factors include: interest of fourm state in adjudicating the matter; burden on D of appearing in case; interest of judicial system in efficient resolution of controversies, and shared interest of the states in promoting common social policies.

In personam jx over corp: copr is a resident for PJ purposes only if it is inc in forum state (otherwise min ctc test)

Internet website: jx over nonrsident’s website based on degree of interactivity between website and the forum, ranging from passive sites to those that are integral to D’s business

Suits based on K: k can be significant factor in determining whether min ctc exist, and choice-of law provisions are significant factor as they establish that the nonresident purposefully availed himself to benefits of forum state laws.

Question 37

Jx over things

Answer 37

In rem: gives court auth to determine issues concerning rights to real/personal property

DP: proceedings against property must still satisfy DP requirements for PJ and property must generally be present in forum state

Quasi in rem: determines only that interests of parties to action regrading property in forum state and not personally binding on D (foreclosure/quiet title)

DP: if disputes are unrelated to ownership of property and no close relationship formed, in addition to having property located in forum state, min ctc must be shown.

Question 38

Notice and opportunity to be heard

Answer 38

Must be reasonably calculated, under all the circumstances , to apprise interested parties of pending action and afford them the opportunity to object

Whenever there is a state sponsored interference w D’s property interest, D must have the opportunity to be heard.