Fed. Jursidiction - Right Court?

Question 1

What must a federal court in order to hear a case?

Answer 1

(1) Personal Jurisdiction - power over the parties

(2) Subject Matter Jurisdiction - power over the case

Question 2

What are the two types of federal subject matter jurisdiction?

Answer 2

(1) Diversity of Citizenship and

(2) Federal Question

Question 3

Requirements for Diversity of Citizenship

Answer 3

Two requirements:

(1) The case is either (a) between “citizens of different states” or (b) between a citizen of a state and a citizen of foreign country AND

No diversity if any P is a citizen of the same state as an D.*

(2) Amount in controversy exceeds $75K ($75,000.01 or more)

Question 4

Test of Citizenship for Natural Persons (Two elements)

Answer 4

For U.S. Citizen, citizenship is the state of her domicle. Established by two factors

(1) Presence in state and
(2) Intent to make it her permanent home (e.g. paying in-state tuitiation, registering to vote.

Test citizenship when case is filed

Question 5

Test of Citizenship for Corporation

Answer 5

Corporation’s citizenship is:

(1) State where incorporated AND
(2) State where the corporation has its one and only principal place of business. [Test - where managers direct and coordinate central corporate activities.

Question 6

Test of citizenship for unincorporated association (i.e. partnership, LLC).

Answer 6

Use the citizenship of all members (including GP and LP). Don’t care where business was formed or its PPB.

Only need diversity with one of the parties.

Question 7

Test of Citizenship for Decendents, Minors, or Incompetents.

Answer 7

Use their citizenship, not the citizenship of their Representative.

Question 8

Good Faith Estimates of Amount in Controversy

Answer 8

Whatever P claims in good faith is OK. If P ultimately win less than $75,000, P may have to pay D’s litigation costs. (i.e. filling fees, but not attorney’s fees.)

Question 9

Rules of Aggregation for AIC

Answer 9

(1) We aggregate the claims of one P vs. one D. But not multiple P’s vs. D.
(2) For jointtortfesor Ds, for the joint claim use the total value of the claim. Number of parties is irrelevant.

Question 10

Equitable Relief and AIC

Answer 10

Two tests; if either is met, most court say it’s OK:

P’s viewpoint: Does the blocked view decrease the value of P’s property by more than $75,000?

D’s viewpoint: Would it could defendant more than $75,000 to comply with the injunction?

Question 11

Actions that a Federal Court will note hear [Exclusions]

Answer 11

Cases involving:

(a) Divorce
(b) Alimony
(c) Child Custody
(d) Probate an Estate

Question 12

Requirement for Federal Question Cases

Answer 12

Complaint must show a right or interest founded substantially on a federal law. Claim “arises under federal law.

“Well pleaded complaint” Rule - claim itself must “arise under federal law.” - Ask - Is P enforcing a federal right?

Question 13

What about additional claims for a claim already in federal court that fails FQ and PJ?

Answer 13

Apply Supplemental Jurisdiction

Question 14

Test of Supplemental Jurisdiction

Answer 14

Claim must share a “common nucleus of operative fact” with the claim that invoked federal SMJ.

Test is always met when claims arises from same transaction or occurence as underlying claim.

Limitation: P cannot use supplemental jurisdiction to overcome a lack of diversity in a diversity case.

But in a FQ Case, P can use supplemental case to bring a case is that doesn’t satisfy diversity requirement.

P can also use it to overcome a lack of AIC in claim in a diversity case

Question 15

Summary of Supplemental Jurisdiction

Answer 15

A non-federal, non-diversity claim can be heard in a federal corut if it meets the Supp. J. “test” unless it is

(1) Asserted by a P
(2) In a diversity of citizenship (not FQ case) AND
(3) Its against a citizen of the same state as the P.

Question 16

Discretionary Factors Courts Can Consider to Deny Supp. Jurisdiction

Answer 16

Discretion NOT to hear a supplemental claim if:

(1) Federal Question is dismissed early in the proceedings;
(2) The state law claim is complex; OR
(3) State law issue would predominate.

Question 17

Requirements from Removal from state to federal court (When/Where/Who?)

Answer 17

When? Within 30 days of service that shows the case is removable. Starts again when second defendant is served.

Requirements:

• All defendants must remove.
• P Can never remove

Where? Federal district embracing the state court where the case was filed.

Question 18

What cases can be removed from state to federal court?

Answer 18

Any cases that meets diversity of citizenship or federal question.

Two exceptions (only applicable for removing on basis of diversity)

(1) No removal if any D is a citizen of the forum (instate D rule) AND
(2) No removal more than one year after te case was filed in state court.

Question 19

Erie Doctrine

Answer 19

BLL: In diversity cases, the federal court must apply state substantive law.

Question 20

Erie Three Part Analysis

Answer 20

1. Is there a federal law (like federal constitution or statute or FRCP o FRE) on point that directly conflicts with state law? If Yes, apply federal law so long as its valid (Supremacy)
   * *Valid so long as its arguably procedural**
2. If there is no federal law on point, ask: Is this one of the easy one? If yes - substantive apply state law

(1) Elements of claim or defense
(2) Statute of limitations
(3) Rules for tolling statutes of limitations
(4) Conflict (or choice) of law rules

(3) If not easy, determine if its substantive (apply factors). If substantive, apply state law:

(a) Outcome determinative
(b) Balance of interest
(c) Avoid Forum shopping

Question 21

Where may P lay venue?

Answer 21

In any district where:

(a) all defendants reside or

• Persons - domicile
• Busines - all district where subject to PJ

(b) a substantial part of the claim arose.

District court may transfer for a case to a different venue, but only one where the case could have been filed unless both parties consent.

Question 22

Forum Non Convenins

Answer 22

Court dismiss or stay the case where another court is the “center of gravity.” It does this because the transfer is impossible.

Question 23

Factors a Court Considers When Transferring Venue when Venue is Proper:

Answer 23

Public and Private court show that the other court is the center of gravity:

Public Factors: things like what law applies, what community should be burdened with jury service, keeping local controversy in the local court.

Private Factors: Convenience - Where are the witnesses and evidence?

**The transferee court applies the choice of law rules of the original court.

Question 24

What if venue is improper?

Answer 24

Court may transfer in the interests of justice or dismiss.