Fed. Jursidiction - Right Court? Flashcards
What must a federal court in order to hear a case?
(1) Personal Jurisdiction - power over the parties
(2) Subject Matter Jurisdiction - power over the case
What are the two types of federal subject matter jurisdiction?
(1) Diversity of Citizenship and
(2) Federal Question
Requirements for Diversity of Citizenship
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)
Test of Citizenship for Natural Persons (Two elements)
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
Test of Citizenship for Corporation
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.
Test of citizenship for unincorporated association (i.e. partnership, LLC).
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.
Test of Citizenship for Decendents, Minors, or Incompetents.
Use their citizenship, not the citizenship of their Representative.
Good Faith Estimates of Amount in Controversy
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.)
Rules of Aggregation for AIC
(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.
Equitable Relief and AIC
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?
Actions that a Federal Court will note hear [Exclusions]
Cases involving:
(a) Divorce
(b) Alimony
(c) Child Custody
(d) Probate an Estate
Requirement for Federal Question Cases
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?
What about additional claims for a claim already in federal court that fails FQ and PJ?
Apply Supplemental Jurisdiction
Test of Supplemental Jurisdiction
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
Summary of Supplemental Jurisdiction
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.
Discretionary Factors Courts Can Consider to Deny Supp. Jurisdiction
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.
Requirements from Removal from state to federal court (When/Where/Who?)
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.
What cases can be removed from state to federal court?
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.
Erie Doctrine
BLL: In diversity cases, the federal court must apply state substantive law.
Erie Three Part Analysis
- 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** - 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
Where may P lay venue?
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.
Forum Non Convenins
Court dismiss or stay the case where another court is the “center of gravity.” It does this because the transfer is impossible.
Factors a Court Considers When Transferring Venue when Venue is Proper:
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.
What if venue is improper?
Court may transfer in the interests of justice or dismiss.
