Everything

Question 1

Federal courts can only hear cases that have?

Answer 1

Subject Matter Jurisdiction

Question 2

Why can federal courts only hear cases that have SMJ?

Answer 2

Courts have limited jurisdiction

Question 3

When does SMJ exists?

Answer 3

Federal Question, Diversity amongst the parties, or Supplemental Jurisdiction

Question 4

When does federal question jurisdiction exists?

Answer 4

Federal question exists if a well pleaded complaint alleges a claim that arises out of (1) federal law, (2) U.S. Constitution, or (3) U.S. treaties.

Question 5

If a plaintiff does not raise SMJ during trial, is it waived?

Answer 5

No, SMJ may be raised at any time even on appeal.

Question 6

Does federal question jurisdiction exists when asserted as a defense?

Answer 6

No, Raising a defense under a federal law is not sufficient to trigger federal question jurisdiction.

Question 7

How do you establish diversity of citizenship amongst the parties?

Answer 7

There must be complete diversity amongst the parties (meaning that no P can be from the same state as a D). and the amount in controversy exceeds $75k.

Question 8

What are the exceptions to diversity of citizenship?

Answer 8

Aliens. If both the P and D are aliens, there is no jurisdiction unless U.S. citizens exists on both sides.

Question 9

How is a natural person’s citizenship determined?

Answer 9

By domicile: the state of residence and the subjective intent to remain in the state indefinitely.

Question 10

How is a corporation’s citizenship determined?

Answer 10

A corporation has dual citizenship and is determined by the principal place of business (“nerve center” where the officers direct, control, and coordinate the corporation’s activities) and any state where it is incorporated.

Question 11

An executor or personal representative is deemed to have the citizenship of

Answer 11

the decedent or person being represented

Question 12

A partnership, sole-proprietorship, or unincorporated association is deemed to be domicile in the state

Answer 12

of every partner, member, or owner.

Question 13

Can a plaintiff aggregate claims to meet the amount of controversy?

Answer 13

Yes, the plaintiff can aggregate claims against one defendant or multiple defendants if all are joint tortfeasers (where the D’s are jointly and severally liable).

Question 14

When does Supplemental Jurisdiction exists?

Answer 14

If a federal court has valid SMJ over some of the claims in the action, then it may exercise supplemental jurisdiction over additional state court claims when they arise from the same “case or controversy.” Generally, such claims must arise from a common nucleus of operative fact (the same transaction or occurrence).

Question 15

What are the limitations to SJ?

Answer 15

1. SJ cannot be used to overcome a lack of diversity.
2. Under federal statute, a court cannot have SJ over claims against third-parties.
3. Federal court may decline to exercise SJ over state claims when: (a) the claim raises a novel or complex issue of state law; (b) the claim substantially predominates over the claim(s) of which the district court had original jurisdiction (SMJ); (c) the federal district court has dismissed all claims over which it had Original jurisdiction; or (d) in exceptional circumstances.

State claims do not substantially predominate over federal claims when the facts needed to prove each claim are identical or similar

Question 16

What is the domestic relations exception to SMJ?

Answer 16

Federal courts must decline jurisdiction (even when diversity or federal question is present), when the case primarily involves domestic relations matters (applies to cases encompassing the issuance of a divorce, alimony, or child custody).

a court should not decline jurisdiction when domestic relations issues are ancillary to the case

Question 17

What is removal?

Answer 17

Removal allows the D to move a case from state court to federal court if the case could have been brought originally in federal court. P cannot remove a case to federal court. In addition, a case cannot be removed more than one year after commencement in a diversity action.

May remove case if: (1) the federal court has SMJ; (2) all defendants agree; (3) action is brought in a state which no defendant is a citizen; and (4) removal is sought within 30 days of either service of the summons or receiving the initial pleading (whichever period is shorter).

Question 18

What is the procedure for removal?

Answer 18

D must file a notice of removal in the federal court district within the state where the action is pending. The notice must: (1) state the basis for federal court jurisdiction and (2) include copies of the documents filed in the State court action. The D must serve the notice of removal upon all parties, and file a copy with the state court. Removal is is automatic, and the state court may take no further action in the case once it receives the notice of removal.

Question 19

Can a federal court sitting in federal question jurisdiction hear a pendent state law claim under SJ?

Answer 19

Yes, if the state law claim arises out of the same transaction or occurrence as the federal law claim.

Ex: P sues D for copyright infringement (federal law) and breach of contract (state law). A federal court may hear the breach of contract claim if the breach arose out of the same transaction or occurrence as the copyright infringement claim. This holds true if the state and federal claims are spread out against multiple defendants (P v. D1 Copyright, D2 Breach of K).

Question 20

What are three types of claims where SJ is commonly tested in diversity cases?

Answer 20

1. Compulsory counterclaims - A counterclaim that arises out of the same transaction or occurrence as the original claim filed (usually the D counter suing the P). A federal court sitting in diversity jurisdiction has SJ over a compulsory counterclaim.
2. Permissive Counterclaim - Counterclaim that does not arise out of the same transaction or occurrence as the original claim filed (usually the D counter suing the P). A permissive counterclaim can only be heard if it independently satisfies diversity jurisdiction (complete diversity is present + amount in controversy exceeds $75k).
3. Cross Claims is a claim filed by a P against another P or by a D against a co-defendant. A federal court sitting in diversity jurisdiction has SJ over a cross-claim if the cross-claim arises out of the same transaction or occurrence as the original claim.