Federal Subject Matter Jurisdiction Flashcards
4 Most Common Grants of Subject Matter Jurisdiction:
1) Diversity jurisdiction
2) Federal question jurisdiction
3) Removal jurisdiction
4) Supplemental jurisdiction
Waiver
Subject matter jurisdiction cannot be waived or agreed to by the parties, unlike personal jurisdiction.
Objection to Jurisdiction
An objection to subject matter jurisdiction can be presented at any stage of a proceeding, including appeal.
U.S. Constitution: Article III, Section 2
- Diversity Jurisdiction: “between citizens of different states…and between a state or the citizens thereof, and foreign states, citizens or subjects.”
- Federal Question: “arising under this Constitution, the Laws of the United States, and Treaties made, or which shall be made, under their Authority.”
Diversity Jurisdiction: 28 U.S.C. § 1332
Congress gives U.S. district courts jurisdiction over actions when (i) the parties to an action are citizens of different states or citizens of a state and citizens or subjects of a foreign state AND (ii) the amount in controversy in the action exceeds $75,000.
Complete Diversity Requirement
Diversity jurisdiction requires complete diversity between the parties on different sides of the case. There can be no diversity of citizenship if any Π in the case is a citizen of the same state or is a citizen or subject of the same foreign country as any Δ in the case.
Exceptions to Complete Diversity
1) Interpleader
2) Class actions greater than $5 million
3) Multiparty, Multiforum Trial Jurisdiction Act of 2002
Interpleader
The Federal Interpleader Act, 28 U.S.C. § 1335, allows the holder of property that is claimed by two or more persons to deposit the property with a court to determine ownership. Under the act, there need be only two adverse claimants of diverse citizenship to establish federal jurisdiction (i.e., any Δ is diverse from any Π).
Class actions greater than $5 million
For certain class actions in which the amount at issue totals more than $5 million, diversity will be met if any member of the Π class is diverse with any Δ. § 1332(d)(2)(A).
Multiparty, Multiforum Trial Jurisdiction Act of 2002
Under the Multiparty, Multiforum Trial Jurisdiction Act of 2002, 28 U.S.C. § 1369(a), for a civil action that “arises from a single accident, where at least 75 natural persons have died in the accident at a discrete location,” only one Π need be of diverse citizenship from one Δ for a federal court to have diversity jurisdiction.
Date of determination of diversity
Diversity is determined at the time the case is filed.
Determining Party Citizenship
According to § 1332, a person must be:
- a citizen of the U.S. and
- a domiciliary of the state, entailing that
- a person is present in the place and
- intends to remain there indefinitely
- EXCEPT in cases of compulsory domicile, such as military or jail.
Stateless Persons
Under § 1332, diversity jurisdiction precludes any stateless person such as (A) an alien who is present in the U.S. and who is not a citizen of a foreign state, or (B) a U.S. citizen residing abroad.
Corporate Citizenship for Diversity Jurisdiction §1332(c)(1):
- It’s place of Incorporation AND
- It’s principal place of business
3 Tests for Principal Place of Business for subject matter jurisdiction:
- Nerve Center Test – (dominant test) Where executive and administrative functions are controlled
- Muscle test – Where everyday business activities occur or the business conducts the bulk of its activities
- Synthesis of the two – Corporate activities as well as total activities test
Factors that can determine citizenship:
- Where you live and keep clothes/memorabilia
- Where you vote, pay taxes, have driver’s license and other licenses
- Where work/have offices
Domicile for Minors
Takes the domicile of parent(s)/guardian(s) at time of birth and maintains until age of majority.
Excluded from Amount in Controversy
No (i) interest, (ii) costs, and (iii) collateral effects of a judgment.
Included in Amount in Controversy
a) c/a
b) Punitive damages
c) Attorney’s fees IF fees are recoverable by contract or statute
What happens if the amount in controversy, for whatever reason, is reduced below the minimum after the action is filed?
Nothing, as long as the original claim was made in good faith. Even if the amount Π eventually recovers is less than the statutory jurisdictional amount, that fact will not render the verdict subject to challenge on appeal for lack of jurisdiction.
Aggregation of claims for Multiple Π:
A) If multiple Πs are enforcing a signle title/right in which they have a common/undivided interest, then the value of their claims are aggregated.
B) If multiple Πs each have separate and distinct claims, united for convenience or economy, then each Π must separately meet the amount-in-controversy requirement.
Aggregation of claims for a single Π against multiple Δ:
A) If the Δs are jointly liable, then YES.
B) If the claims against each Δ are separate and distinct, then NO.
Aggregation of claims for class actions:
Generally, EVERY MEMBER must have a claim that meets the statutory jurisdictional amount. Snyder v. Harris, 394 U.S. 332 (1969); Zahn v. International Paper, 414 U.S. 291 (1973).
**EXCEPTION: Class Action Fairness Act of 2005 amended § 1332(d) to permit aggregation of claims in certain class actions.
Federal Court can refuse to exercise juridiction when:
- a case invoving the same parties is currently pending in another court
- the case involves issues of state law that the states should rule upon first
- the state court may have a greater understanding in a complex area of law
- parallel litigation is pending in another court