Federal Subject Matter Jurisdiction (SMJ)

Question 1

three types of subject matter jurisdiction (SMJ)

Answer 1

1. federal question
2. diversity of citizenship
3. supplemental jurisdiction

NOTE: a federal court may only hear cases when it has SMJ because it’s a court of limited jurisdiction

Question 2

federal question jx

Answer 2

exists when the claim arises under (a) federal law, (b) the US Constitution, or (c) US treaty
- P must be enforcing a federal right
- federal question MUST be present on the face of a well pleaded complaint
- raising a defense under federal law is NOT sufficient

Question 3

diversity of citizenship jx

Answer 3

requires both:
1. complete diversity of citizenship: @ time the action is commenced (No P can be from the same state as any D); AND
2. amount in controversy exceeds $75K: based on damages alleged in good faith in complaint UNLESS it’s legally certain that the P cannot recover the specified amount

NOT exactly @ $75K - NO diversity

Question 4

complete diversity of citizenship

Answer 4

citizenship is determined by domicile
- Natural person: (1) residence, AND (2) subjective intent to make the state their permanent home
- Corporation: has dual citizenship (1) the principal place of business, and (2) any state where it is incorporated
- Unincorporated association: deemed to be domiciliary of the state of every partner/member/owner
- Executor/Personal Representative: citizenship is that of the decdent or person being represented

Question 5

amount in controversy exceeds $75K

Answer 5

based on damages alleged in good faith in complaint UNLESS it’s legally certain that the P cannot recover the specified amount
- Injunctive Relief: the amount of the benefit to P OR cost of compliance for D
- may aggregate claims against one D (or against multiple Ds if they are jointly and severally liable)

Must exceed: NOT @ exactly $75K - no diversity

Question 6

diversity jurisdiction of a large class action

Answer 6

exists when:
1. amount in controversy exceeds $5 million,
2. at least 100 class members, AND
3. minimal diversity is present - if any member of the plaintiff class is a citizen of a state different from any D

Question 7

limits on class action diversity jurisdiction

Answer 7

• court MAY decline to exercise jurisdiction when **non-diverse members are > 1/3 AND < 2/3 **of the total class
• court MUST decline to exercise jurisdiction when non-diverse members are > 2/3 of the total class

Question 8

class action jurisdiction does NOT apply

Answer 8

1. if the primary Ds are states, state officials, or other govt entities that the court is foreclosed from ordering relief,
2. if < 100 class members, OR
3. in class actions involving securities or corporate fiduciary claims

Question 9

supplemental jurisdiction

Answer 9

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 jx when such claims arise from the 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 10

limitations on supplemental jx

Answer 10

• supplemental jx 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 OG P against a 3P D

Question 11

supplemental jx discretion

Answer 11

a court MAY decline to exercise supplemental jx when:
- a claim raises a novel or complex issue of state law,
- a claim substantially predominates over the other claims which the court has SMJ,
- the court dismissed all claims that had federal SMJ, OR
- in exceptional circumstances

Question 12

domestic relations exception

Answer 12

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 jx when a domestic relations matter/issue is ancillary to the case

Question 13

removal

Answer 13

D MAY remove a case to federal court (in district where state court case was OG filed) if:
1. the federal court has SMJ,
2. all Ds agree,
3. No D is a resident of the forum state (if removal is based on diversity jx), AND
4. removal is sought w/in 30 days of service of the summons OR receiving the initial pleading (whichever is shorter)

NOTE: a P CANNOT remove a case to fed ct
- they consented to state court when filing

Question 14

absentee doctrines overview

Answer 14

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

Question 15

absentation doctrines

Answer 15

1. 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
2. Younger doctrine: court may abstain from hearing constitutional challenges to a state action when it would interfere w/ a state judicial proceeding
3. Colorado River doctrine: court should abstain when parallel (substantially the same) state and federal litigations are pending
4. Burford doctrine: abstaining is appropriate if federal adjudication would interfere w/ a state’s administration of a complex regulatlory scheme