Federal Jurisdiction Flashcards
Subject Matter Jurisdiction
Federal courts have limited SMJdx and may hear cases involving federal question or diversity of citizenship
Fed Courts Exclusive Jurisdiction
Federal courts hold exclusive jurisdiction in bankruptcy, antitrust, patent, and postal matters.
Federal Question Jurisdiction
Federal courts have Federal Question jurisdiction if the well pleaded complaint asserts a claim arising under federal law. (not a defense or counterclaim) (e.g. Constitution, federal statutes, treaties, etc.)
Diversity Jurisdiction
Federal courts have diversity jurisdiction if 1) complete diversity is present, 2) the amount in controversy exceeds $75,000.
Complete diversity
No plaintiff may be a citizen of the same state as any defendant at the time the action is commenced.
Citizenship
Determining citizenship for diversity purposes varies depending on the party involved.
Individual Citizenship
Under Diversity for SMJ determining citizenship for diversity purposes varies depending on the party involved. For individuals–a natural person’s citizenship is determined by his domicile.
Domicile
For individuals–a natural person’s citizenship is determined by his domicile. DOMICILE: A person’s domicile is the state where he is PHYSICIALLY PRESENT and has the SUBJECTIVE INTENT to remain
Corporation’s Citizenship
Corporations have dual citizenship in (a) every state in which it is incorporated; AND (b) the one state where the corporation has its Principal Place of Business (PPB) PPB is determined by the “nerve center” test and refers to the place where a corporations officers direct, control, and coordinate the corporation’s activities (i.e. headquarters.)
Unincorporated Associations (partnerships, LLC’s, etc.)Citizenship
Unincorporated Associations (partnerships, LLC’s, etc.) citizenship is determined by the citizenship of all members, including limited and general partners.
Diversity–The Amount in Controversy
The amount in controversy in a diversity claim is based on the GOOD FAITH allegations of the P unless it appears to a legal certainty that she cannot recover more than $75,000 not including interest or cost of litigation (i.e. statutory ceiling on recovery.) a) determined at the time of filing; b) what Plaintiff wins is irrelevant; and c) must exceed 75K; not equal to
Exceptions to Federal Subject Matter Jurisdiction
Federal courts will NOT hear cases involving family law (divorce, alimony, child custody) or probate.
Supplemental Jurisdiction
When the court has
original jurisdiction over one claim in a matter,
it may exercise supplemental jurisdiction over other claims
over which the court would not independently have jurisdiction
if all the claims constitute the same case or controversy and arise out of a COMMON NUCLEUS OF OPERATIVE FACT.
COMMON NUCLEUS OF OPERATIVE FACT
When the court has original jurisdiction over one claim in a matter, it may exercise supplemental jurisdiction over other claims over which the court would not independently have jurisdiction if all the claims constitute the same case or controversy. Claims constitute the same case or controversy if they arise out of a COMMON NUCLEUS OF OPERATIVE FACT.
Diversity Limitations on Supplemental Jurisdiction
In diversity SMJ cases, if Plaintiff brings a claim against a joined party that destroys diversity, the court does not have supplemental jdx over such claims.
Discretion–Supplemental Jurisdiction
Exercise of supplemental jdx is discretionary based on facts and circumstances of the case. The court must analyze whether the claim raises 1) NOVEL OR COMPLEX ISSUES of state law, 2) state law claims SUBSTANTIALLY PREDOMINATE, 3) all original jdx claims have been dismissed, OR 4) whether there are OTHER EXCEPTIONAL CIRCUMSTANCES to determine if they weigh against the exercise of supplemental jdx.
CPOO
Complex/Predominating/Original jdx dismissed/Other Exceptional circumstance
Removal
Removal allows the Defendant to move a case from state court to federal court if the case could have been brought originally in federal court. who: Only the D’s are allowed to remove what: In state D rule: in diversity cases, the D may not remove to federal court if any D is a citizen of the forum. Where: Venue: The case can be removed to a federal district court embracing the state court where the case was originally filed (same county/district) When: The D must remove no later than 30 days after service of the first removable document (initial pleading), but never later than one year after the initial filing. The 30 days starts afresh for each newly served D. Jurisdiction is based on the DATE the action is commenced.
Removal–Who
ONLY DEFENDANTS are allowed to remove a claim from state court to federal court if the case could have been brought originally in federal court.
Removal–Who and What
In-state Defendant Rule: in diversity cases, the D may NOT remove to federal court if any D is a citizen of the forum state.
Removal–Where
Venue: The case can be removed to a federal district court embracing the state court where the case was originally filed (same county/district)
Removal–When
Timing: The defendant must remove –NO LATER THAN 30 DAYS AFTER SERVICE of the first removable document (initial pleading.) —but NEVER later than ONE YEAR AFTER the initial filing. —The 30 DAYS STARTS AFRESH for each newly served D.
Removal Jurisdiction
Removal jurisdiction is based on the date the action is commenced.
Remand
Remand is when a D attempts to remove a case to federal court and the removal is improper. The Federal court can remand the case back to state court. 1) Federal court can remand based on its own review of the removal request or it may do so upon review of a motion by P seeking remand. 2) The relevant time for determining the existence of federal SMJdx is at the time of removal.
