Personal and Federal Jurisdiction

Question 1

What are the elements necessary for the court to have “Personal Jurisdiction” over a defendant in a case? (Can the plaintiff sue the defendant in this state/jurisdiction?)

Answer 1

2 Steps (for state and federal courts)

1. Satisfy a state statute - Usually a state will have a long arm statute that will give the state court jurisdiction
2. It must satisfy the US Constitution (Due Process)

Question 2

How is the US constitution satisfied for prima facie “personal jurisdiction?”

Answer 2

1. Does the defendant have minimum contact with the forum state - prima facie if:
   a. Domiciled in the forum state
   b. Defendant consents
   c. Def. is voluntarily present in the state when served

Question 3

How is the US constitution satisfied if there is no prima facie “personal jurisdiction?”

Answer 3

There must be the following:

1. Contact;
2. Relatedness; and
3. Fairness

Question 4

When there is not prima facie personal jurisdiction, how is contact proven?

Answer 4

2 Factors:

1. The contact must result from purposeful availment (3 factors); and
   a. The def. voluntarily acted in the forum state;
   b. The def. targeted the forum state
   i. for business
   ii. used roads, etc.
   c. Def. does not necessarily have to enter the forum state
   i. tortious emails to the forum, etc.
2. It must be foreseeable that the def. could be hailed into court in the forum

Question 5

When there is not prima facie personal jurisdiction, how is relatedness proven?

Answer 5

Is there relatedness between the contact and the plaintiffs claim?

1. If the answer above is yes than relatedness prong may be satisfied (Specific Jurisdiction); or
2. If the answer is no then the court still may have jurisdiction if “general jurisdiction” exists (meaning the def. is domiciled in the forum, or prima facie)
   * *Individuals have one domicile, and corporations may have two domiciles - Where incorporated and Principal Place of Business (PPB) (“Nerve Center”)

Question 6

When there is not prima facie personal jurisdiction, how is fairness proven?

Answer 6

*Fairness is only analyzed in specific jurisdiction cases
3 Steps:
1. The burden of proof rests on the def. (high burden)
a. Does due process guarantee that this is the most convenient forum
b. Relative wealth of the parties is not determinative
2. States interest: Always mention this if the plaintiff is a resident of the forum
3. Plaintiffs interest - e.g. hurt in his home state and so he wants to sue in his home state

Question 7

What is subject matter jurisdiction (SMJ)?

Answer 7

Which court has the authority to hear the claim, state or federal.

1. State Courts - Generally have broad jurisdiction and can hear just about any case, with some limitations to federal law cases
2. Federal Courts - Have limited jurisdiction

Question 8

Which two types of cases may be heard in Federal Court?

Answer 8

1. Cases involving diversity of citizenship; and

2. Cases which involve a federal question

Question 9

What is needed to demonstrate diversity of citizenship to have a case heard in Federal Court?

Answer 9

1. The def. and the plaintiff of the case must be citizens of different states, or one of the parties can be a citizen of a different country (alienage) (This is complete diversity)
2. The amount in controversy must exceed $75,000

Question 10

How is diversity determined to take a case to federal court?

Answer 10

1. Complete diversity, def. and plaintiff are city of different states, or alienage (different countries)
   a. EXCEPTION: If an LPR is from the same state as a USC than there is no diversity or alienage (example: plaintiff LPR Arizona, and def USC of Arizona – No diversity or alienage) prohibited by statute
   b. To determine citizenship of the parties, determine if the person is an individual or company, and then where they are domiciled (Remember individuals can have one and corps can have two)
   i. LLC’s etc. - Citizenship of all owners - This could be as many as all 50 states (ie an LLC has members with domicile in 23 states, all 23 states have citz)

Question 11

What are the requirements for the amount in controversy to exceed $75,000?

Answer 11

1. Must be at least $75,000.01 (has to exceed)
2. Interest on the claim does not count towards the amount in controversy
   a. *Interest as part of the claim is ok
   i. What the plaintiff actually wins is irrelevant (e.g. amount in controversy is $80,000 and plaintiff settles for $60,000)
3. For example if the plaintiff claims $80K and only wins $60K the jurisdiction was ok, as long as the $80K was reasonable (but have to pay the defs costs for winnings less than $75K, basic expenses of litigation, not attys fees)

Question 12

With amount in controversy, what is aggregation?

Answer 12

Adding more than one claim to reach $75,000 - 3 Rules:

1. One cannot aggregate the claims of multiple defs.
2. One can aggregate multiple claims arising from the same scheme
3. Joint Tortfeasors for greater than $75,000 (e.g. if you are hurt and there are joint tortfeasors and the claim is great er than $75,000 than it is ok to be in federal court)

Question 13

When can injunction satisfy the amount in controversy requirement to be heard in federal court?

Answer 13

2 Part test:

1. Does the injunction cost more than $75,000; OR
2. Would it cost $75,000 to fix?

Question 14

What are cases that the federal courts will never hear?

Answer 14

a. Divorce
b. Alimony
c. Child Custody
d. Probate and Estate

Question 15

What are the requirements for a case to be heard under Federal question in federal court?

Answer 15

Must arise from questions of federal law (Citizenship of the parties is irrelevant)

1. Well Pleaded Complaint - Does the plaintiff raise a federal question?
   a. If yes than to federal court
   b. If no - Do not go to federal court
   * 2. Do not fall for amount in controversy or diversity w/ federal Q.

Question 16

What is supplemental Jurisdiction?

Answer 16

Supplemental jurisdiction cannot occur until you are in federal court (This gets a non-diverse and non-FQ into court where an initial claim is in federal court – Only comes up when Diversity and FQ are not met): 2 parts:

1. Must share a common nucleus of operative fact with the main claim (or prima facie, arose out of the same transaction or occurrence t/o); and
2. By statute there are certain claims that cannot have supplemental jurisdiction
   a. Diversity – Not FQ, and;
   b. In diversity only for claims by plaintiffs, not defendants, and;
   c. Plaintiff trying to assert a claim against a co-citizen (Very narrow)
   i. **Court always has discretion to decline supplemental jurisdiction claims

Question 17

What is Removal?

Answer 17

This is when a plaintiff brings an action in state court and realizes that the action may be brought in Federal court; if removal is improper the federal court can remand the case back to state court; if the case is removed it must be removed to the federal court with jurisdiction over the state court

Question 18

What is the test for removal of a case from state court to federal court?

Answer 18

1. When: The Def. has 30 days from the time of service (not filing) to remove the case to federal court
2. Who: All of the defs. involved in the case must remove (this only includes the defs. that have been served process)
   a. * The plaintiff may never remove, filed and chose venue to begin with
   EXCEPTIONS TO REMOVAL:
3. No removal if the def. is a citizen of the forum state
4. No removal after one year of the case being filed