Midterm Flashcards
3 Tix to Federal Court
- Federal Question
- Diversity
- Supplemental
What is Fed Question?
Arises under the US constitution or other federal statutes.
Well-pleaded complaint rule
Requires “arising under” federal law to be the basis of the claim or COA.
Mottley Case
Significant because plaintiffs anticipated the defense would raise federal law, rather than directly violated a federal law.
Mottleys could not receive free tickets on RR which was actually a state matter and breach of contract.
Embedded Federal Question
If the state law raises an important enough federal issue despite not adhering to the Well-pleaded complaint.
Exception to Well-pleaded complaint
Grable Test
- Necessarily raised - must raise a federal issue.
- Actually disputed - both parties disagree
- Substantial
- Capable of resolution without disrupting the balance of state and federal
Grable Case
The court in Grable, even though the CoA was about a “state quiet title”, the issue itself was whether the IRS provided Grable proper notice of its property sale, as defined by federal tax law 26 USC §6335.
Diversity Jurisdiction
- Citizens of diff states
- Amount in controversy exceeds 75k(§1332(a))
How state law claim gets heard in federal court.
Concurrent jurisdiction (can be heard by both fed/state)
Citizenship
A person is a citizen of a state in which they are domiciled.
Domicile requirements
- Physical prescence
- Intent to remain indefinitely - no fixed plans to leave
* Vague intentions to leave do not violate this requirement.
* citizenship is in the last state you had domicile
* US citizen or green card
Hawkins v. Masters Farms
- held that a person is a citizen of the state in which they are domiciled.
- plaintiff’s presence and intent to remain were in Kansas
- the domicile of the decedent is what matters
Diversity of Foreign Citizen
- A foreign citizen can be subjected to a US lawsuit and diversity can be invoked. §1332(a)(2)
- Either domiciled in diff state or diff country suing a US citizen
- No foreign citizen v. foreign citizen for diversity purposes
Redner v. Sanders
- held that even if a person is a US citizen, they may not be considered domiciled in a US state if they are living in a foreign nation.
- had connections to CA, he was not considered domicile since he had no physical presence within CA and, obviously, showed no intent to remain in CA
Complete Diversity Rule
- All plaintiffs must be from different states than all the defendants.
- Diversity based on when the case was filed
- Mechanism to prevent in-state favoritism
Corporate Diversity
- State of incorporation
- Principal Place of Business - Where senior execs go to work. AKA Nerve Center
* Not where they do the most business