Federal Subject Matter Jurisdiction

Question 1

Federal Question Jurisdiction

Answer 1

Claim arises under (a) federal law, (b) the U.S. Constitution OR (c) U.S. treaty.

• P must be enforcing a federal right.
• Federal question must be present on the face of a well pled complaint
• Raising defense under federal law insufficient

Question 2

H Diversity of Citizenship Jurisdiction

Answer 2

1. Complete Diversity of Citizenship at the time action is commenced AND
2. Amount in controversy exceeds $75,000

Question 3

Complete Diversity of Citizenship Requirements

Answer 3

Citizenship is determined by domicile:

Natural person? →

residence + subjective intent to make state their permanent home

Corporation? →

Principle Place of Business OR Any State of Incorporation

Unincorporated Association? →

Domciled in state(s) of every partner/member/owner

Executor/Personal Representative? →

Citizenship of the decedent or person being represented

Question 4

Diversity Jurisdiction in Large Class Action

Answer 4

CAFA

1. Amount in controversy exceeds $5 million
2. At least 100 class members
3. Only minimal diversity is present

(any class member is a citizen of a State different from the defendant)

Question 5

Limits on Class Action Diversity Jurisdiction

Answer 5

Court may decline to exercise jurisdiction when non-diverse class members are greater than 1/3, and less than ⅔ of the total class

Question 6

Class Action Jurisdiction DOES NOT apply when:

Answer 6

a) If the primary D’s are States, State officials, or other govt. entities that the court is foreclosed

from ordering relief;

b) If less than 100 class members; OR
c) In class actions involving securities or corporate

fiduciary claims

Question 7

Supplemental Jurisdiction

Answer 7

Allows a party to bring a state claim in Federal Court that does not meet the requirement of SMJ.

− A Federal Court may exercise Supplemental Jurisdiction when such claim arises from a common nucleus of operative fact as the other claims the court has SMJ over (the claims must arise out of the same transaction or occurrence).

Question 8

Limitations of Supplemental Jurisdiction

Answer 8

− Supp. Jurisdiction CANNOT be used to overcome a lack of diversity

− It CANNOT be asserted if it would violate complete diversity.

− It DOES NOT apply to claims by the original Plaintiff against a third-party Defendant.

Question 9

Supplemental Jurisdiction - Discretionary

Answer 9

A court MAY decline to exercise Supp. Jurisdiction when:

a) a claim raises a novel or complex issue of State law;
b) a claim substantially predominates over the other claims which the court has SMJ;
c) the court dismissed all claims that had federal SMJ; OR
d) in exceptional circumstances.

Question 10

Domestic Relations Exception

Answer 10

Federal courts MUST decline jurisdiction if a case primarily involves domestic relations matters (divorce, alimony, child custody/support issues).

• But, a court should NOT decline jurisdiction when a domestic relations matter/issue is ancillary to the case.

Question 11

Removal

Answer 11

Defendant MAY remove a case to Fed. Court (in the district where the state court case was originally filed) if:

1) The federal court has SMJ;
2) All defendants agree;
3) No defendant is a resident of the forum state (if removal is based on diversity jurisdiction); AND
4) Removal is sought within 30-days of service of the Summons or receiving the initial pleading (whichever is shorter).

A PLAINTIFF CANNOT REMOVE A CASE TO FEDERAL COURT

Question 12

Abstention Doctrines

Answer 12

Federal courts MAY abstain from hearing a case when it would intrude upon the powers of another court. Additionally, a court may stay a case arising from ambiguous state law to await the outcome of a pending state court case.

Abstention Doctrines:

− Pullman Doctrine – discretion to abstain when a case arises from unsettled areas of state law, and a state court interpretation may remove the need to decide the case on federal grounds.

− Younger Doctrine – court may abstain from hearing constitutional challenges to a state action when it would interfere with a state judicial proceeding.

− Colorado River Doctrine – court should abstain when parallel (substantially the same) state and federal litigations are pending.

− Burford Doctrine – abstaining is appropriate if federal adjudication would interfere with a state’s administration of a complex regulatory scheme.

Question 13

Personal Jurisdiction Requirements

Answer 13

Fed. Courts must have PJ over a party for its judgment to be binding.

− Fed. Courts can exercise PJ to the same extent as the State courts where the federal district court is located.

1) Traditional bases of jurisdiction; and
2) Long-arm Jurisdiction.

Question 14

Traditional Bases of Jurisdiction:

Answer 14

a) Domicile;
b) Presence in the state when served;
c) Consent; OR
d) Waiver (appearing in the action without
objecting) .

*The above comports with Due Process requirements.

Question 15

H

Long Arm Jurisdiction

Answer 15

To assert PJ over a non- resident:

1) The State must have a Long-Arm Statute; AND
2) Comply with Constitutional Due Process Requirements

– D has sufficient minimum contacts with the forum state so as not to offend traditional notions of fair play and substantial justice.

Question 16

Constitutional Due Process Requirements

Answer 16

i) Prong 1 - Minimum Contacts (contacts + relatedness) – Either:
a) General Jurisdiction – contacts so substantial and of such nature that D is essentially at home; OR

• Individuals = domicile in the state
• Corporations = where Corp. is “at home” (usually where incorporated or headquartered).

b) Specific Jurisdiction – connection between forum state and underlying controversy AND lawsuit must relate/arise from D’s contact with the state.
i. Regularly occurring product sales in a state DOES NOT justify jurisdiction of a claim unrelated to those sales.
ii) Prong 2 - Fair Play & Substantial Justice (fairness) – Must be fair and reasonable for D to be sued in the forum state.

Question 17

Service of Process & Notice - Timing

Answer 17

Timing – Summons & Complaint MUST be served on D within 90-days after filed with the court.

− Otherwise, the court must →

(a) dismiss the action without prejudice against that D; OR
(b) order that service be made within a specified period of time.

Question 18

Service of Process and Notice - Who can serve process?

Answer 18

Service may be made by any person who is:

(1) at least 18 years old, AND
(2) not a party to the action.

Question 19

Service of Process and Notice - Method of Service (Standard)

Answer 19

Method of Service – The method of service must be consistent with Due Process → reasonably calculated, to make the parties aware of the action, and give them an opportunity to object.

Question 20

Service of Process and Notice - Method of Service (Individual)

Answer 20

Individual→

may be served:

(a) personally;
(b) via someone of suitable age and discretion at the individual’s current dwelling or usual place of abode;
(c) via an agent (by appointment or by law); OR
(d) in accordance with state law of the forum state or where service is made.

Question 21

Service of Process and Notice - Method of Service (Corporation/Partnership/Association)

Answer 21

may be served:

(a) in accordance with state law of the forum state or where service is made; OR
(b) to an officer or managing/general/authorized agent.

Question 22

Service of Process and Notice - Method of Service (Foreign Defendant)

Answer 22

may be served via any manner NOT prohibited by international agreement.

Question 23

Proper Venue

Answer 23

Venue is Proper in any district where (at the time action is FILED):

a) any defendant resides (if all defendants are residents of the forum state);
b) a substantial portion of the claim occurred;
c) a substantial portion of the property is located;

OR

d) if none of the above, then where any defendant is subject to the court’s PJ.

Question 24

Transfer of Venue (Venue Proper)

Answer 24

If venue was proper when the case was filed, the court MAY transfer it if:

1) Needed for the convenience of the witnesses or in the interests of justice; AND
2) The case could have initially been brought in the receiving court (court has PJ and SMJ).

Question 25

Transfer of Venue (Improper)

Answer 25

If venue was improper when the case was filed, the court MUST either:

a) Dismiss the case; OR
b) Transfer the case to a proper court if the interests of justice require it.

Question 26

Forum Selection Clause

Answer 26

Forum Selection Clause – Courts will enforce a forum- selection clause UNLESS special factors are present (i.e. significant/unusual hardship, inequality of bargaining power).

Question 27

When does Erie Doctrine apply?

Answer 27

Applies when a federal case is brought under diversity of citizenship jurisdiction.

Question 28

Erie - General Rule

Answer 28

Federal courts will apply federal procedural law, BUT must apply the substantive law of the forum state in which it sits.

Question 29

Substantive vs. Procedural

Answer 29

Procedural Law = civil procedure rules, statute of limitations (except in limited circumstances), burden of proof, and rebuttable presumptions.

Substantive Law = choice of law rules, statute of frauds, irrebuttable presumptions, statute of limitations that condition a substantive right or have a borrowing statute, preclusion law.