CIVIL PROCEDURE - Subject Matter Jurisdiction

Question 1

How is citizenship determined in representative actions?

Answer 1

1) Historically, citizenship is based on the domicile of the REPRESENTATIVE (consider unincorporated associations).
2) Exception for when the REPRESENTED are a) minors, b) incompetents, and c) decedents. In that case, citizenship is based on the domicile of the REPRESENTED.
c) In class actions, citizenship is based on the domicile of the NAMED MEMBERS OF THE CLASS.

Question 2

Define “subject matter jurisdiction”

Answer 2

The court’s power over the subject matter of the lawsuit.

Question 3

What are the types of supplemental jurisdiction?

Answer 3

Pendent (plaintiff asserts) AND
Ancillary (defendant or other party asserts)

Question 4

What kind of jurisdiction do federal courts have? What does that mean?

Answer 4

Limited jurisdiction.
Case must fall into one of the categories expressly stated in Article III.

Question 5

What are the bases for subject matter jurisdiction in federal court?

Answer 5

CAN be based on
1) a federal question properly pleaded in the complaint; or
2) diversity of citizenship.

Question 6

What are the requirements for diversity of citizenship jurisdiction?

Answer 6

Plaintiff must show:
complete diversity;
AND
satisfy AIC requirement

Question 7

What is the well-pleaded complaint rule?

Answer 7

The federal question must be INTEGRAL (part and parcel) to the plaintiff’s cause of action, as revealed by plaintiff’s properly-pleaded complaint (i.e. what one would naturally and appropriately plead in a complaint)

Question 8

What is the effect of supplemental jurisdiction?

Answer 8

Allows a federal court to hear claims (not cases) over which it does not have an independent basis for subject matter jurisdiction (e.g. state law claims).

Supplemental jurisdiction gets non-federal and non-diversity claims into federal court.

Question 9

What is the test for supplemental jurisdiction?

Answer 9

The claim must share a “common nucleus of operative fact” with the claim that satisfied federal subject matter jurisdiction and got the case into federal court in the first place.

The test is always satisfied if the additional claims arise out of the same transaction or occurrence (unless the plaintiff, in a case in which federal subject matter jurisdiction is based on diversity of citizenship, tries to tack on a pendent claim which destroys diversity).

Question 10

What is the amount in controversy requirement for diversity actions?

Answer 10

To meet the AIC requirement, plaintiff must have a GOOD FAITH claim EXCEEDING $75,000, exclusive of interest and costs.

Question 11

What things are NOT SUFFICIENT for federal question jurisdiction?

Answer 11

1) Anticipatory defense - where plaintiff anticipates a defense based on a federal statute (e.g. where plaintiff seeks a declaratory judgment that the defendant has no valid fraud suit).
2) Artful pleadings - federal questions NOT INTEGRAL to the claim/cause of action
3) State laws incorporating federal standards (arises under state law, not federal)

These may all be brought in using supplemental jurisdiction

Question 12

What types of cases will a federal court not hear even if there is diversity jurisdiction?

Answer 12

Divorce, alimony, child custody (family law), or PROBATE of estate (and, these are not cases involving federal questions; these are state law cases governed by state law)

Question 13

What are the requirements for federal question jurisdiction?

Answer 13

Federal courts have jurisdiction over “all civil actions arising under the Constitution, laws, or treaties of the United States”.

Question 14

What are the rules for alienage jurisdiction?

Answer 14

In DIVERSITY cases,
1) U.S. Citizens NOT DOMICILED in the U.S. cannot sue or be sued in federal court with diversity as basis for subject matter jurisdiction
2) Alien v. citizen OK, citizen v. alien OK
3) Alien v. alien = NOT OK
4) Permanent resident alien is a citizen of the state in which she or he is domiciled for purposes of diversity jurisdiction

Question 15

How is the citizenship of non-resident US citizens determined?

Answer 15

U.S. citizens NOT DOMICILED in the U.S. is neither a citizen of any state nor an alien. Thus, U.S. Citizens NOT DOMICILED in the U.S. cannot sue or be sued in federal court with diversity as basis for subject matter jurisdiction

Question 16

When may a plaintiff aggregate claims together to satisfy the AIC requirement?

Answer 16

1) Multiple plaintiffs - NO. Each plaintiff must have a claim or claims totaling more than $75K, UNLESS JOINT INTEREST (e.g. A and B jointly own Blackacre and defendant trespasses, and A and B each claim $40K in damages)
2) Single defendant - YES. A plaintiff who has multiple claims against a single defendant may aggregate claims to meet the AIC requirement
3) Multiple defendants - NO. A plaintiff may not aggregate claims against multiple defendants. The AIC requirement must be met against each defendant individually.

Question 17

How is equitable relief valued for purposes of AIC?

Answer 17

Split of authority:
Some courts go with the plaintiff’s viewpoint/harm to plaintiff: what is the value of the injunction to the plaintiff?
Other courts go with the defendant’s viewpoint/cost to defendant of complying with the injunction.
Some courts will allow either viewpoint for AIC satisfaction purposes.

Question 18

Define complete diversity

Answer 18

The parties to the left of the “v” have completely different domiciles from the parties to the right of the “v” (NO OVERLAP)

Question 19

What are the limitations on the use of pendent jurisdiction?

Answer 19

In diversity cases, pendent jurisdiction is prohibited when the additional claim would destroy complete diversity

Question 20

Are there any limitations on the use of ancillary and supplemental jurisdiction?

Answer 20

YES AND NO (CONSIDER SUPPLEMENTAL V ANCILLARY JURISDICTION)

ANCILLARY
NO: Any party OTHER THAN the plaintiff may overcome lack of complete diversity or amount in controversy in both diversity and federal question cases.

SUPPLEMENTAL
YES: A federal court may refuse/decline to exercise supplemental jurisdiction for any of the following reasons:
1) State law claim predominates: the state law claim substantially predominates over the claim or claims over which the federal court has jurisdiction
2) Complex claim of state law - the claim raises a novel or complex issue of state law
3) Original claim dismissed - the federal court has dismissed all claims over which it had original jurisdiction
4) Other compelling reasons or exceptional circumstances

Question 21

How is citizenship of corporations determined?

Answer 21

A corporation is a citizen of the state where is it INCORPORATED, AND a citizen of the state where it has its PRINCIPAL PLACE OF BUSINESS (NERVE CENTER)

Question 22

How is the citizenship of individuals determined?

Answer 22

By DOMICILE–a person’s true, fixed, and permanent home.
Must have PRESENCE and INTENT TO REMAIN.

Question 23

Define ancillary jurisdiction

Answer 23

For related claims asserted by defendants or other additional parties that do not have an independent basis for jurisdiction.

Question 24

When is diversity determined?

Answer 24

Diversity is determined at the time the suit is filed / where the parties were domiciled at the commencement of the lawsuit (i.e. the day the action is filed in federal court)

Question 25

Define pendent jurisdiction

Answer 25

Supplemental jurisdiction: a plaintiff asserts a jurisdictionally proper claim and tacks on another claim that does not have an independent basis for jurisdiction.

Question 26

Can subject matter jurisdiction be waived?

Answer 26

NO; A motion to dismiss for lack of subject matter jurisdiction is never waived and can be raised at anytime. It can even be raised for the first time on appeal. And the court can determine at any time that it lacks subject matter jurisdiction.