Civ Pro 1 - SMJ Flashcards
Federal Question Jurisdiction
Sec 1331 – The district courts shall have original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the United States.
A case arises under federal law if the plaintiff is alleging a right or interest that is substantially founded on federal law, which consists of federal common law, federal constitutional law, federal statutory law, treaty law, and federal administrative law.
Well Pleaded Complaint Rule
a. Well Pleaded Complaint Rule – The federal question must appear as part of the plaintiff’s cause of action as set out in his well pleaded complaint. The existence of a defendant’s answer or anticipated defense based on federal law will not give federal question jurisdiction.
1. Plaintiff’s right to recover must come from federal law.
2. Issue of federal law must appear in plaintiff’s well pleaded complaint.
b. Any information included in plaintiff’s complaint that is superfluous or irrelevant to plaintiff’s claim will NOT be considered in determined whether the court has federal question jurisdiction.
Diversity Jurisdiction
Section 1332: Diversity of Citizenship; Amount in Controversy
a) The district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs, and is between—
a. Citizens of different States;
b. Citizens of a State and citizens or subjects of a foreign state;
c. Citizens of different States and in which citizens or subjects of a foreign state are additional parties; and
d. A foreign state… as plaintiff and citizens of a State or of different States.
*Diversity must be complete. No P and no D can live in the same state.
Amount in Controversy - Diversity Jurisdiction
a. Determined at time case is filed. Court does not lose jurisdiction if it is eventually LESS than $75k.
b. Aggregation
i. Single plaintiff-single defendant: P may aggregate all claims against D to meet AIC min.
1. Claims do NOT have to be related.
ii. Multiple plaintiffs may NOT aggregate UNLESS:
1. If claims are factually related, P with $75 AIC.
2. Ps hold a joint and undivided interest in property exceeding $75k and claims involve that property. Courts look at value of property as AIC instead of individual shares.
iii. If suing multiple defendants, must have AIC of $75k for EACH.
c. May include:
i. Punitive and compensatory
ii. Attorney fees (if allowed by law to recover them)
iii. Any interest that is an essential ingredient of the claim does count.
1. Interest is included if it is part of a debt that is paid on time, but not if it is a “penalty” or added charge for late payment.
d. Legal Certainty Test
i. Even if the plaintiff’s demand for relief seems high, the court will accept it unless it appears to a legal certainty that the plaintiff cannot recover the amount sought.
ii. Very difficult for defendant to overcome the presumption that P’s request is in good faith.
Diversity Jurisdiction - Domicile
a. Individuals may have several places of residences, but only ONE domicile.
i. Burden is on p, once challenged, to evidence domicile
ii. DOMICILE established by physical presence in a new place and the intention (even if only for a moment) to remain there. Must exist at same time.
iii. Factors to consider when determining DOMICILE:
1. Where civil and political rights are exercised;
2. Taxes paid;
3. Real and personal property (such as furniture and automobiles) located;
4. Driver’s and other licenses obtained;
5. Bank accounts maintained;
6. Location of club and church membership;
7. Places of business or employment.
Diversity Jurisdiction - Domicile of Corporations
b. Corporations may have TWO domiciles
i. State in which they are incorporated; and
ii. Principal place of business
1. Nerve Center Test – The State from which the corporation’s high level officers direct, control, and coordinate the corporation’s activities (usually the corporation’s headquarters).
c. Partnerships and unincorporated associations are NOT treated the same as corporations. In determining diversity courts look to the citizenship of all the partners or members of the associations. Unlike a corporation, partnerships or unincorporated associations may not sue or be sued in their own name.
d. You determine the citizenship of an LLC by the citizenship of its members. Just like partnerships. When you’re doing that analysis, you have to trace through the layers.
Realignment According to Interests - Diversity Jurisdiction
a. In determining whether diversity exists, the court will look beyond the nominal designation of the parties in the pleadings and realign them according to their true interests in the dispute. Thus, realignment may create diversity or destroy it.
Rules to remember for domicile
- a person always has one – and only one – domicile.
- An infant acquires a domicile at birth, which is almost always the domicile of his parents
- In order to change his domicile, a person must both establish residence in a new state and have the intent to remain in that state. The residence and the intent to remain must exist at the same time, even if only for a moment.
Supplemental Jurisdiction
Sec 1367(a) – In any civil action of which the district courts have original jurisdiction, the district courts shall have supplemental jurisdiction over all other claims that are so related to claims in the action within such original jurisdiction that they form part of the same case or controversy. • Test: COMMON NUCLEUS OF OPERATIVE FACT – essentially, same transaction or occurrence test
Sec 1367(b) Restriction on the Use of Supplemental Jurisdiction in Diversity Cases
For cases based solely on diversity, supp. Jurisdiction may NOT be used to support:
Essentially, if you defeat the basis for Diversity Jurisdiction, you can’t do it.
i. Claims by P against persons made parties under Rules 14 (impleader), 19 (compulsory joinder), 20 (permissive joinder), or 24 (intervention);
ii. Claims by persons proposed to be joined as Plaintiffs under Rule 19; and
iii. Claims by persons seeking to intervene as plaintiffs under Rule 24
Section 1367(c) – The district courts may decline to exercise supplemental jurisdiction over a claim under subsection(a) if:
i. The claim raises a novel or complex issue of State law;
The claim substantially predominates over the claim or claims over which the district court has original jurisdiction;
ii. The district court has dismissed all claims over which it has original jurisdiction
iii. In exceptional circumstances, there are other compelling reasons for declining jurisdiction.
Removal - 1404(a) – ORIGINAL VENUE PROPER
a. Allows transfer to another district where the action “might have been brought” even though venue has been properly laid in the court before which the motion to transfer is made.
b. Forum Selection Clause in a contract is a FACTOR to be considered along with convenience and the interest in justice in deciding whether to transfer the case.
c. VAN DUSEN RULE - A transfer solely on convenience grounds carries to the transferee court the originally applicable rules. Ie. The law of the state in which the transferor court sat.
a. No substantive advantage for moving party
Removal 1406(a) – ORIGINAL VENUE IMPROPER
a. Allows transfer to another district where the action “might have been brought” even though venue has been improperly laid in the court before which the motion to transfer is made.
b. Transfer is more appropriate than dismissal in “the interest of justice.”
c. Results in a change of the law applicable under Erie i.e. the state in which the transferee court sits.
Removal 1441 – Remove from State to Federal Court
a. ALL defendants must agree on removal.
b. “remand” - when a removal has been granted, other party may file remand to send it BACK to state court.
c. ONCE CASE IS REMOVED, you CANNOT argue dismissal on 1391 grounds.
d. You CAN argue forum non conveins.
Forum Non Conveniens
- common law option for the court whereby, even in cases where all SMJ, PJ and Venue requirements are met, the defendant can ask the court to transfer the case to another district (or dismiss if it is to go to state court or to a non-US court) because having the case in their venue would be UNFAIR, INCONVENIENT or BURDENSOME.
- Venue must be appropriate SOMEWHERE
- Only remedy under FNC is DISMISSAL.
