Jurisdiction and Venue

Question 1

What is the complete diversity rule?

Answer 1

Diversity jurisdiction requires COMPLETE diversity between the ALL πs & ALL ∆s

Citizenship= Domicile(permanent home)

1) Natural person = Presence + Subjective Intent (only 1)
2) Corporation = Incorporation AND principal place of business (“nerve center”/headquarters) (more than 1 place)
3) Unincorporated associations (partnerships, etc) = domicile of ALL states of constituent members/partners (can be more than 1 place)

US citizen & permanent resident = citizen of state where domiciled

US citizen domiciled abroad = NOT a citizen of a state (
NO diversity w/ US citizen & NO alienage)

Decedents, minors, and incompetents = look to citizenship of the person being represented (NOTthe citizenship of rep.)

NOTE: Parties must be diverse when the claim is FILED (don’t look at when issue arose or what happened after filing)

Question 2

What is the necessary amount in controversy AND how do you calculate the amount?

Answer 2

> 75k ( at least $75,000.01)

** DO NOT include interest/costs of litigation

**Valid unless it is “clear to a legal certainty” that P cannot recover $75k

** Ultimate recovery amount IRRELEVANT to jurisdiction BUT π MAY have to pay ∆’s litigation costs (even if she won)

Aggregation

1 π vs. 1 ∆
π can aggregate multiple claims, even if unrelated

1 π vs. 2 ∆s
π cannot aggregate unrelated claims
π can aggregate related claims against joint tortfeasors

Value of injunction

1) Majority view (π’s viewpoint) - is harm to π > $75,000?
2) Minority view (∆’s viewpoint) - would it cost ∆ > $75,000 to comply?

Question 3

What types of cases are excluded EVEN IF diversity requirements are met?

Answer 3

Federal courts will not hear cases involving:

1) Divorce
2) Alimony
3) Child custody decree
2) Probate of a decedent’s estate

Question 4

What is the Erie DoctrineAND how does it work?

Answer 4

In DIVERSITY CLAIMS (or supplemental jurisdiction claims), federal court must apply state substantive law

STEP 1: Federal law or rule = apply federal law

STEP 2: No federal law on point = apply state substantive law

- Elements of a claim/defense
- SOLs
- Rules for tolling SOL
- Conflict (or choice) of law rules

STEP 3: May ignore state procedural rule, but apply state law if ignoring state law be outcome determinative

** Consider the balance of state and federal interests. Is there a risk of forum shopping by applying federal law?

Question 5

What is the well-pleaded complaint rule?

Answer 5

Complaint on its face must ENFORCE a federal RIGHT (I.e. π’s claim must “arise under” federal law)

• • Anticipation of a federal defense is not enough
• • Remember some areas are exclusively federal (e.g. patent, admiralty)

Question 6

How is Personal Jurisdiction assessed in federal courts?

Answer 6

Same as in NY state courts

See NY Practice flash cards

Question 7

What is removal?

Answer 7

∆ can remove to federal courtIF case could have been filed in a federal court (diversity, alienage, FQ)

* *ONLY ∆ can remove to federal court (and never from) 
* * π can NEVER remove based on ∆’s counterclaim

All ∆’s MUST agree to removal

PURE DIVERSITY CASE

∆ CAN’T remove IF:

(i) ANY ∆ is a citizen of the forum; OR 
(ii) More than 1 year after case was filed in state court (unless bad faith by π)

Waiver of Removal Rights

∆ who files a permissive counterclaim in state court probably waives the right to remove; BUT

∆ who files a compulsory counterclaim in STATE court - probably doesn’t waive right.

Question 8

What is the procedure for a properremoval?

Answer 8

1) ∆ must remove within 30 DAYS of service of the first removable pleading on ∆ (clock starts anew w/ ∆2)

2) ∆ must…
- File notice of removal in federal court, setting forth grounds of removal, signed under Rule 11;
- Attach all documents served on ∆ in the state action;
- Send a copy to all adverse parties;AND
- Then file a copy of the notice of removal in state court

3) Removal is to a federal district court empracing the state court where filed (BK state ct→EDNY) 4) If removal was procedurally improper - π must move to remand to state court within 30 days of removal BUT, if there is no smjx, π can move to remand anytime

Question 9

What kinds of cases can be heard in federal court?

Answer 9

1) Diversity of Citizenship= Diversity (including alienage) + Amount in Controversy
2) Federal question = claim based on federal law/constitution

Question 10

What is supplemental jurisdiction AND when can it be used in federal courts?

Answer 10

Once case is in federal court (DIVERSITY or FED Q) → Federal court can hear claims over which it has no INDEPENDENT basis of SMJ

TEST = target claim must share a “common nucleus of operative fact”(i.e. from same “transaction or occurrence”) with the underlying case (irrelevant if claim involves different ∆)

In a PURE DIVERSITY case, a π cannot use supplemental jurisdiction to overcome a LACK of diversity, BUT…can use to overcome lack of AIC

In a FED Q case, a lack of diversity does NOT matter; can use supplemental jurisdiction EVEN on a state law claim

If the ∆ brings a claim, it does NOT matter (only binding on the π)

NOTE: Ct. has discretion NOT to hear supplemental jurisdiction claim IF

- Fed. Q. dismissed early
- State law claim is complex; OR
- State law claim would predominate

Question 11

In which federal court must the case be filed? (I.e. when is venue proper?)

Answer 11

RULE:

1) Any district where ALL ∆s reside; ORif ∆s from the same state, any distict where any of them lives
2) Any district where a substantial part of the claim arose

Residence = domicile; all districts that can get personal jurisdiction over a corporation

Make sure to discuss BOTH ways to lay venue

Question 12

How can venue be transferred?

Answer 12

Can only transfer to a district court that has proper venue and personal jurisdiction over the ∆ (without waiver by D)

1) If venue in original forum is proper→ may transfer to another federal district court based on
- convenience of parties/witnesses (“center of gravity”);
- OR interests in justice

** Court applies the choice of law rules of the original court, even if π initiated the transfer

2) If venue in original forum is improper→ court may transfer in the interests of justice OR dismiss

** Court applies the choice of law rules of the transferee court

Question 13

What is service of process?

Answer 13

Delivering to ∆:

(1) a SUMMONS (formal notice of suit and time for response); AND
(2) copy of the COMPLAINT
(3) Within 120 DAYS after filing case (OTHERWISE, case is dismissed w/o prejdice unless π shows good cause)

Can be served by any NON-PARTY who is 18+

Method = any method allowed by

(i) FCRP [personal service (delivered to ∆ in person; or substitute service (left w/ someone of suitable age/discretion who resides at usual abode) or agent service (service ∆'s agent)]; 
(ii) state law (NY); OR 
(iii) the law of the state in which service is effected

∆ can waive service by sending in waiver form through mail (does not waive a personal jurisdiction defense)
**If ∆ does not waive, she has to pay for service

A federal court in NY can serve process OUTSIDE NY only if a NY state court could also (i.e. it has personal jurisdiction)