Civ Pro Flashcards
Requirements for diversity jurisdiction
- Complete diversity (each P is a citizen of a different state from each D)
- Amount in controversy exceeds $75,000
How is the citizenship of a corporation determined?
- Citizen of every state in which it is incorporated
2. Citizen of state where HQ is located (place where high-level officers direct and control)
When is citizenship determined?
At the time of filing
Can P aggregate claim $ to reach the $75k limit?
Yes, all claims against the same D (against multiple Ds only if Ds jointly liable)
Requirements for federal question jurisdiction
Federal courts have original jurisdiction for questions arising under federal law, const, treaties
FQ must appear as part of P’s well-pleaded complaint
Can a federal defense create FQ jx?
NO. Existence of a defense based on federal law will not create FQ jx.
Requirements for supplemental jx
Where a P has both fed and state claims, fed ct has discretion to exercise supp jx over state law claim if:
Fed ct has original SMJ over one federal claim, and the claims arise out of a CNOF such that the claims ordinarily be tried in the same proceeding
State statutes may authorize PJ on either of several factors:
- D’s presence in forum state along with proper service of process
- D’s domicile in the forum state
- Where the D consents to PJ
- Where the state’s long arm statute provides a basis for jx
PJ must be….
statutorily authorized and constitutional
DP Clause requires that parties receive fair and adequate notice
The modern due process standard for PJ focuses on:
- contacts
- relatedness
- fairness
- Contacts for PJ:
There must be sufficient minimum contacts between D and the forum state such that jx is fair and reasonable
- “purposeful availment” (of the benefits and protections of the forum state)
- foreseeability (activities in forum state make it foreseeable for D to be hauled into ct in forum state)
- Relatedness for PJ:
P’s claim must be related to D’s contacts w/ forum state
PJ: specific jx
Ct may exercise jx for the complained of cause of action based on the D’s purposeful activities in the forum state
PJ: general jx
Ct may exercise jx for ANY cause of action if D is “at home” in the jx
- Fairness for PJ:
Exercise of PJ must not offend the “traditional notions of fair play and substantial justice”
Erie Doctrine
Federal ct applies state substantive law and federal procedural law in DIVERSITY cases
Erie Doctrine Steps:
If there is conflict between the state and federal law:
1. is there a federal rule on point (const? stat? FRCP?)
Yes –> apply the federal law if it is “arguably procedural”
No –> apply federal law for procedural matters and state law for substantive
How to decide substantive or procedural for Erie?
Outcome Determinative Test – an issue is substantive if it substantially affects the outcome
Balance of Interests Test – if the state has the greater interest, than the issue is substantive
Forum Shopping Deterrence – if failing to apply state law would increase litigation in federal court, then the issue is substantive
Erie Doctrine
Certain areas deemed to be substantive:
- SOL
- rules for tolling SOL
- choice of law
- elements of a claim or defense
Test for Impleader
D may implead a nonparty only if TPD is or may be liable for all or part of D’s liability to P
Rule for Joinder
A TPD may assert a claim against the P if the claim arises out of the same transaction or occurrence as P’s original claim
What is an entry of default?
Default is a notation in the case file by the court clerk, that there has been no answer filed within the time permitted by the rules. It is NOT the same as a default judgment
How long does D have to respond to complaint?
A D formally served with complaint must respond with MTD or answer within 21 days after service
If r12 MTD is made, then D’s responsive pleading is to be served within 14 days of court’s denial of motion
D who waives formal service, must response within 60 days after request was mailed to D to answer, if does not waive might be liable for service costs
When is an entry of default judgment made?
when D does not oppose the case, either by failing to plead or to otherwise defend
Once entry is made, D loses ability to contest liability unless D has entry set aside
Can contest damages at hearing
When may the CLERK enter default judgment?
- the amount in dispute is for a sum certain and proved in P’s affidavit
- D has NOT appeared
What is an appearance, for entry of default judgment?
An appearance means any formal appearance or any action by the defendant indicating that he intends to contest the merits Once D has appeared, D must be given notice by first class mail at least 7 days before default hearing (”additiaonl notice”)
Proper service of process methods
- personal service
- abode service
- service on authorized agent
- as provided by the rules of the state in which:
- the federal court sits OR
- service is to be made
Compulsory counterclaim
Once a TPD is impleaded, TPD must assert any compulsory counterclaims and may assert any permissive counterclaims in the same manner as any other defendant
Compulsory counterclaims arise from the same T/O as P’s claim, must be pleaded as counterclaim or barred
Permissive counterclaims
Any other claim by defendant that does not arise from the same T/O as P’s claim is permissive
SMJ = court’s power over
Case
PJ = court’s power over
Person
Two-step PJ analysis
- PJ must fall within a statute
2. PJ must satisfy the Constitution (due process)
Constitutional analysis for PJ (step 2)
Does the defendant have such minimum contacts with the forum so jurisdiction does not offend traditional notions of fair play and substantial justice?
Factors: contact, relatedness, and fairness
PJ: contact =
Purposeful availment + foreseeability
PJ: Purposeful availment definition
Voluntary act targeting forum (including causing an effect in the forum, even without physical presence)
PJ: Foreseeability definition
Foreseeable that D could get sued in that forum
PJ: relatedness
Determines whether specific or general PJ
- does cause of action arise from or relate to D’s contacts with forum?
(yes: specific jx/no: need general jx) - broader than actual causal connection
If contacts are related to the case
PJ is “specific PJ” and skip to reasonableness step
If contacts unrelated to case
Need general jx (PJ over any cause of action, related or unrelated)
Requirements for general PJ
- D must be “at home” in the forum
- human is “at home” in state of domicile
- can also get general PJ over human D if served with process in the forum (“tag jx”)
A corporation is “at home” and subject to general PJ in
- state of incorporation
- state of principal place of business
PJ: when is fairness assessed?
When PJ is specific, not general
Three fairness factors (specific PJ only)
- burden on D and witnesses
- state’s interest
- P’s interest
Notice/Process
consists of two documents
- summons
- copy of complaint
As a constitutional matter, notice must be
“reasonably calculated, under all the circumstances, to apprise interested parties of the action.”
Who can serve process
- anyone 18+ who is not a party
- no court appointment necessary
When must process be served
- within 90 days of filing (if served within US)
- may be extended for good cause
Options for service on individual
- personal service (in-hand delivery)
- substituted service at D’s usual abode on someone of suitable age and discretion who resides there
- delivered to D’s agent
- state law methods permitted by the law of the state
1. where the federal court sits OR
2. where service is made
Options for service on a business or organization
- on officer or agent
- state law methods permitted by the law of the state
1. where the federal court sits OR
2. where service is made
Service on a minor or incompetent person in US
-use state law method where service is MADE
Service on parties in a foreign country
Still must be reasonably calculated to give notice
- methods allowed by international agreement
- methods allowed by US courts
- methods allowed by foreign country’s law
- methods directed by a foreign official in response to a letter of request
- personal service unless prohibited by foreign country’s law
- mail sent by the CLERK of an American court, as long as signed receipt required, unless prohibited by foreign country’s law
Can D waive service of process?
Can D waive service of process?
Yes
P mails to D notice and request to waive service
Must include copy of complaint, 2 copies of waiver form, prepaid means of returning form
When waiver of service of process is effective
If the defendant signs and mails the waiver form back to the plaintiff, the plaintiff files the waiver in court; the waiver is effective then
D has to mail back within 30 days, or 60 days if D is outside US
Does D waive defenses by waiving service?
NO
If D does not return waiver form for service of process
D pays for service costs as a penalty (unless good cause)
D is immune from service of process while
appearing in another case (as a party, witness, or attorney)
Service of other documents (not process)
These are just delivered or mailed, no summons needed
Can serve by email if parties agree
Cases that state courts cannot hear
Patent, bankruptcy, some federal securities, antitrust
But they can hear ANYTHING ELSE
Two main bases for federal SMJ:
- federal questions
- diversity of citizenship
Can SMJ be waived?
NO
Requirements for diversity jx
- right kind of litigants (between citizens of different states or between a citizen of a state and a citizen of a foreign country (alienage))
- amount in controversy exceeding $75k
Complete diversity rule for SMJ
no SMJ if any P is citizen of the same state as any D
When is diversity determined?
When the case is filed
Can a non-US citizen be a citizen of a state for diversity purposes?
No
Are permanent resident/green card holders citizens of a state for diversity purposes?
No
SMJ: Alienage jx is ____ if a permanent resident is domiciled in the same state as an adverse party
Withdrawn
Citizenship of a natural person determined by
- domicile
- but only ONE domicile at a time
How to change domicile
- physical presence in new place AND
- subjective intent to make new place domicile for foreseeable future
How to treat D.C. for diversity purposes?
It is treated as a state
Citizenship of a corporation
- ANY state in or country where incorporated AND
- ONE state or country where principal place of business is located
Principal place of business definition
Where corporation’s managers direct, coordinate, and control the business
Citizenship of an unincorporated association (partnership, LLC)
-takes on citizenships of all members
Citizenship of decedents, minors, and incompetents
Use their citizenship, not that of representative
Class action citizenship
Use the citizenship of the named representative
Inclusion of interest for $75k requirement
- prejudgment interest NOT included
- interest as part of claim is included
Good faith allegation by P is enough to meet $75k requirement unless
It is a legal certainty that the amount is not possible
Aggregation of claims for $75k requirement
- a single P may aggregate all claims against a single D
- multiple Ps cannot do this
- for joint claims: look to the total value of the claim (not aggregation because you are not adding anything, number of parties is irrelevant)
Equitable relief for $75k requirement
Amount in controversy is determined by looking at value of relief to P OR D
Decline of diversity for SMJ
Federal courts decline actions for divorce, alimony, child custody, probate/estate
If P genuine changes citizenship to acquire diversity, is that allowed?
Yes, if genuine
Federal question jx
- claim arises from federal law
- determined by well-pleaded complaint
Determining well-pleaded compliant
Ask: is P enforcing a federal right?
Removal
Procedure allowing D to move case from state court to federal court
Court will remand if removal improper (send it back to state court)
Standard for removal
Case filed in state court could have been brought in federal court (meets diversity or FQ jx)
Notice of removal
- filed in federal court, copy in state court
- states grounds for removal
- court permission is not required
- served on adverse parties
Timing of removal
-D must remove no later than 30 days after service of the first paper showing case is removable
(usually service of process)
Who joins in removal
- All Ds served with process
- earlier-served D may join later-served D’s removal even if earlier-served D’s 30 days expired
Can P’s remove?
NEVER
even if D files counterclaim against P
What cases can be removed?
removal starting point is always SMJ (diversity or FQ)
limits on removal based on diversity:
-cannot remove if any D is a citizen of the forum state (in-state defendant rule)
-cannot remove beyond one after the case was filed (does not apply if D originally joined that D to prevent removal)
In-state defendant rule applies to what type of jx?
Diversity (NOT FQ)
Removal venue
- case must be removed to the federal court embracing the state court
- doesn’t matter if not proper venue under venue statutes
Remand after removal
- P must move to remand within 30 days if defect other than SMJ
- 30-day limit does not apply if federal court lacks SMJ
- lack of SMJ is never waived
Supplemental jx
-must have a case already in federal court
step 1: look for SMJ in additional claim (no need for supp jx if there is SMJ over additional claim)
step 2: must arise from same CNOF as claim in existing federal court case
limitation: Ps cannot invoke supp jx in diversity case (there is an exception)
same T/O always satisfies ____ test
CNOF
yolk in the egg!
Can P invoke supp jx in a diversity case?
NO
but there is an exception
Exception to the limitation that Ps generally cannot invoke supp jx in a diversity case
The exception to the limitation applies when there are multiple plaintiffs, and the claim by one of them does not meet the amount in controversy requirement
Discretion for supp jx
Even if we meet the requirements for supplemental jurisdiction, the court has discretion to decline it. It can do so if the state law claim is complex or state law issues would predominate in the case. But the more likely one is this: It can decline supplemental jurisdiction if the claim on which federal SMJ is based is dismissed early in the case
Erie Doctrine steps
Step 1: is there a federal law on point that directly conflicts with state law?
If so: apply that federal law so long as it is valid
Step 2: if no federal law on point: federal judge must apply state law if issue is substantive
Step 3: determine whether issue is substantive
-outcome determinative
-balance interest factors
-avoid forum shopping
For Erie, the FRCP are
Presumptively valid if arguably procedural
None has ever been held invalid
Five issues that are clearly substantive for Erie (so the federal court must apply state law)
- conflict or choice of law rules
- elements of a claim or defense
- statutes of limitation
- tolling of statutes of limitation
- standard of granting a new trial because the jury’s award was excessive or inadequate
Federal common law
Erie means there is no general federal common law. So the general common law of torts, contracts, and property is state law, and federal courts must apply that state substantive law in a diversity case. But there are areas in which federal courts are free to make up common law on their own.
Two possible venues for cases initially filed in federal court
- any district where ALL Ds reside (residential venue-there is a nuance) OR
- where substantial part of claim arose or substantial part of property located (transactional venue)
Residential venue nuance
- venue proper in any district where D resides if all Ds reside within state
- Ds have to reside in same state
- so if D1 is in ND Cal and D2 is in SD Cal you can file in either
Transactional venue
- substantial part of claim must arise in the district
- substantial part does not equal all
- more than 1 district can satisfy requirement
If D resides outside US, venue is proper
in any federal district court, but if another defendant does reside in the United States, venue must be proper as to her
Where does D reside for venue purposes?
- human resides in federal district where domiciled
- business resides in all districts where subject to PJ for this case
Transfer of venue
Transfer goes from one trial court in a judicial system to another trial court in the SAME judicial system
Original ct is transferror, new ct is transferee
Transferee must be a proper venue AND have PJ over D, without waiver by D
Statute 1: Transfer from a proper venue
Convenience of the parties and interests of justice
Burden is on the person seeking transfer (usu D)
The court will consider both public and private factors showing that another court is the center of gravity for the case:
Public: The court will consider things like what law ap- plies, what community should be burdened with jury service, the desire to keep a local controversy in a local court.
Private: The court considers convenience. For example, it will look to where the defendants and evidence are found.
Effect on choice of law under transfer statute 1
Transferee court usually must apply choice of law rules of transferor court (unless valid forum selection clause)
Effect of forum selection clause under transfer statute 1
- ordinarily enforced if not unreasonable
- unless public interest factors say otherwise (unlikely)
- private interest factors NOT considered
- transferee court applies own choice of law rules