Personal and Subject matter jurisdiction

Question 1

Subject Matter Jurisdiction (and types)

Answer 1

Fed. courts must have authority over the claim in question (as opposed to the parties or property, which is the concern of P J); SMJ refers to courts’ ability to exercise that authority

• Const. provides limits on types of cases that fed. courts can hear
• SMJ cannot be waived

Types of SMJ:

1. Diversity jx
2. Federal question jx
3. Supplemental jx
4. Removal jx

Question 2

Diversity Jurisdiction

Answer 2

Fed. courts have SMJ over controversies between citizens of different states, even where claims do not involve fed. law.

• Diversity jx conferred by Const. and by statute

Requirements:

1. Complete Diversity
2. Amount in controversy must exceed $75.000

Question 3

Exception to diversity jurisdiction (type of cases)

Answer 3

Exceptions to diversity jx: fed. courts will not hear actions involving divorce, alimony, child custody, or probate, even if diversity requirements are otherwise satisfied

Question 4

Complete Diversity (SMJ Requirements)

Answer 4

Every P must be of diverse citizenship from every D ( i.e., no diversity if any Pis citizen of same state as any D)

• Does not require that all parties be citizens of different states; just no P and no D can be from the same state (e.g., two Ps can be from Utah, as long as no D is from Utah)
• Examined at time of filing - diversity need not exist when claim arose
• Diversity can exist between a citizen of a U.S. state and a foreign country (sometimes called “alienage jx”)

Question 5

Citizenship for Complete Diversity (Natural Persons)

Answer 5

Determining citizenship for diversity purposes varies for individuals and businesses

Natural Persons - citizens of the state where they are domiciled at the time the suit is filed

• Domicile - where a person maintains a permanent home
  
  • Person cannot have more than one domicile
• Factors - for determining person’s domicile, look at:
  
  • Physical - actual presence in the state
  • Mental - intent to make state permanent home (e.g., where person votes, works, is licensed, etc.)

Question 6

Citizenship for Complete Diversity (Corporations)

Answer 6

Business - Corporations & Unincorporated business (LLCs, LLPs, etc.)

• Corporation - citizens of every state where incorporated and where corp. maintains principal place of business (“PPB”)
  
  • Corp. can have multiple states of citizenship
  • Determining PPB - look to where corp. decisions are made, i.e., “nerve center” (usually corp. headquarters)

Question 7

Citizenship for Complete Diversity (Partnerships, LLC)

Answer 7

Unincorporated businesses (LLCs, LLPs, etc.) - citizens of all states in which any partner or member is a citizen

Question 8

Amount in controversy (SMJ)

Answer 8

General Rule - P’s complaint must make a good faith allegation that the amount of damages or injury in controversy exceeds $75,000, excluding interest and costs

• Lenient standard - to dismiss for insufficient amount, there must be no legal possibility that recovery will exceed $75k
• Amount actually awarded is irrelevant

Can you add lawyer fees and interests? ONLY IF AGREED BEFORE, and INTEREST IS NOT JUST DUE PAYMENT

Question 9

How are Equitable relief claims are measured in diversity?

Answer 9

Equitable relief claims - court looks at value of the harm caused. It can be measured in $.

Can look from either P or D perspective - i.e., does act requiring injunctive relief harm P by more than $75k; or would it cost D more than $75k to comply with the injunction sought?

Question 10

Aggregating Claims to achieve SMJ (can you add all type of claims?)

Answer 10

Aggregating claims - may be permissible to meet $75k requirement

• One P can aggregate all her claims against a single D
• Multiple Ps or Ds - aggregating only allowed if either:
  
  1. One P has joint liability claims against multiple Ds
     
     • Use total value of the claim
  2. Multiple Ps seek to enforce a single undivided title or right in which they have a common, undivided interest (rare)
     
     • E.g., several Ps jointly own real estate and sue D to quiet title - undivided interest, so aggregation OK
     • Otherwise they would require supplemental SMJ

Question 11

Federal Question Jurisdiction analysis

Answer 11

Fed. courts have jx over properly-pleaded claims arising under fed. law. (No diversity or amount in controversy requirements)

Requirements - claim must show a right or interest founded substantially on fed. law

• Fed. question must appear on the face of the complaint
  
  • FQJ cannot arise based on extraneous allegations or potential defenses
• Analysis - ask if Pis enforcing a fed. right (e.g., one that arises under fed. statute, regulation, Const., etc.)
  
  • If not, no FQJ exists
• Note - beware of fact patterns in which complaint raises a fed. law or issue, but P is not enforcing a fed. right

Question 12

Exclusive Federal Jurisdiction (SMJ) (no state court have SMJ over them)

Answer 12

Exclusive fed. jx - fed. courts have exclusive jx over certain types of claims, which must be heard in fed. court

• Most common areas of exclusive federal jx:

1. Bankruptcy
2. Patent and copyright
3. Federal antitrust claims
4. Postal matters

Question 13

What it is Supplemental Jurisdiction?

Answer 13

Allows a fed. court to hear additional claims (e.g. counterclaims and cross-claims) that do not, on their own meet diversity or FQJ requirements.

Supplemental Jurisdiction cannot use a non SMJ into fed. court (the case have to be on fed court by itself)

Question 14

Supplemental Jurisdiction: Requirements

Answer 14

All cases must be together trough a common nucleus of operative fact (CNOF):

• Each additional claim must share a CNOF with an existing claim that invoked FQJ or diversity Jx.
  
  • Same transaction or occurrence: Supplemental claims share a CNOF if they arise from the same transaction or occurrence as the underlying claim.

Question 15

Supplemental Jurisdiction: Discretionary refusal. When a court may refuse a supplemental claim?

Answer 15

Court may refuse a supplemental claim if:

1. Original Jx claims are dismissed early in the proceeding
2. Supplemental claim raises a novel or complex state law issue or;
3. Supplemental claim substantially predominates over original Jx claims

Question 16

Supplemental Jurisdiction: Limitations

Answer 16

Supplemental by itself does not work in Diversity: In diversity cases, P cannot use supplemental Jx to overcome lack of diversity . However, P can use supplemental Jx to overcome insufficient amount in controversy (Limitation only affects claims made by the P.) (Except when needed for money amount)

Additional parties cannot use it: A case that is in fed court for diversity, cannot be used for some actions by additional parties:

1. Intervention: Needs independent SMJ
2. Wrongly named parties: If they are from the same state as D, they could lose diversity (this doesn’t apply to a party substitution)
3. Third-party defendant: If the claim is the same, no additional SMJ is needed, unless new claims are presented

Question 17

What SMJ do you have on a Cross-Claim

Answer 17

When Federal Courts have SMJ over one claim, it has the discretion to allow the exercise of supplemental jurisdiction over related claims that derive from the same common nucleus of fact and are such that a plaintiff would ordinarily be excepted to try them in a single judicial proceeding.

This would be possible even if the other D in a cross-claim is from the same state as the original D.

This rule is different for 3P Claims

Question 18

What is removal jurisdiction?

Answer 18

D removes a case originally filed in state court to fed court if the fed court would have had SMJ (i.e., diversity or FQ)

• D is the only one that can use it, P cannot invoke removal
• This is not a motion, but a notice

Question 19

What are the removal jurisdiction rules?

Answer 19

1. Can only remove if the case could have been filed in fed. court
2. Only D can remove and all Ds must agree to removal
3. Can only remove to the fed. district embracing the state court in which the case was originally filed
4. D who files a permissive counterclaim in state court waives the right to remove

Exception: D cannot remove if the P filed suit in any Ds home state (i.e. no removal if any D is a citizen of the forum state) (except on FQ cases where he can)

Question 20

Removal jurisdiction timing

Answer 20

(Either FedQ or Diversity) D must remove:

1. within 30 days of service of the first removable document (service of process usually)
2. within 30 days of service after the case become removable

And only for Diversity:

• Removal must be done within the year of the suit being filed (unless bad faith)

Question 21

Removal jurisdiction procedure

Answer 21

1. D must file notice in state and fed courts (the court embracing the state court).
2. Notice must contain grounds for removal and copies of documents served in state court; must be signed
3. All adverse parties must recieve notice of removal

30 days after first complaint document (1 year after if dismissal if diversity) otherwise waived. D can show that P included another D just to mess removal.

Question 22

Removal jurisdiction: Diversity Jx limitation;

Answer 22

D cannot remove if the P filed suit in any Ds home state (i.e. no removal if any D is a citizen of the forum state) (except when is FQ case) (this limitation only work on Diversity)

Question 23

Removal jurisdiction: Remand

Answer 23

If removal is improper court can remand to state court

1. Improper procedure: P can move to remand within 30 days
2. Lack of SMJ: P can move to remand at any time

Question 24

What is the eerie doctrine?

Answer 24

A federal court exercising diversity jurisdiction applies state substantive law and federal procedural law

In a diversity case, Fed. courts must apply state substantive law and fed. procedural law. The eerie doctrine is the method to define whether to use state or federal law (i.e. whether a state law is substantive)

Question 25

Eerie doctrine analysis steps to determine which law applies

Answer 25

1. Is there a valid fed. law (e.g. Constitution, statute, federal rule) that is on point and directly conflicts with state law? If yes: Select always Fed Law
2. If no Fed law is on point, then analyze under these tests whether state law is applicable:

• a) Outcome determinative
• b) Balance of interests
• c) Forum shopping avoidance

Question 26

Eerie: If no Fed Law is on point, then what?

Answer 26

You should analyze the case under these three tests:

• a) Outcome determinative; Would applying or ignoring the state rule affect the outcome of the case? (if yes state law is substantive and should be applied)
• b) Balance of interests; Does either fed. or state system have a strong interest in applying its rule? (if one has clearly stronger interest apply that law)
• c) Forum shopping avoidance: if fed. courts ignores state law, would it encourage litigants to flock to fed. court?

Question 27

What is ALWAYS governed by state substantive law?

Answer 27

1. Elements of a claim or defense
2. Statute of Limitations
3. Conflict/choice of law rules
4. Rules for tolling Statue of Limitation (SOL)

Question 28

Personal Jurisdiction (Overview)

What is the core concept?

What concepts are in balance?

Answer 28

Personal jurisdiction (“PJ”) involves the court’s ability to exercise authority over parties or their property

• Core concept is fairness - i.e., is it fair for this court to exercise jx over this D?
• Must balance state’s interest in protecting its citizens with due process rights protecting against unfair exercise of jx (prevent unfair bias against foreigners)

Question 29

Personal Jurisdiction Analysis steps

Answer 29

Analysis - jx must be statutorily authorized and constitutional

• Statutory - an applicable state law must authorize jx
  
  • » Usually a long-arm statute will apply (see card 3)
• Constitutional - jx must satisfy due process
  
  • » Minimum contacts - parties must have minimum contacts with forum state
  • » Adequate notice - parties must receive adequate notice of the action

Question 30

Types of Personal Jurisdiction

Answer 30

• In Personam (Jx over persons)
• In Rem (Jx over property or status)
• Quasi in rem (Jx over persons with respect to property)

Question 31

In personam - Personal Juridisction

Answer 31

In personam - jx over persons
• Court may render judgment (money or injunction) against an individual based on contacts with the forum state
• Note - type of jx most likely to be tested

Question 32

In rem - Personal Jurisdiction

Answer 32

In rem - jx over property or status, including ownership disputes

• Court adjudicates rights of parties with respect to property located in forum state
  
  • » Judgment is binding as to disposition of property rights or status, not as to parties personally
• Often involves estate issues, business proceedings, property disputes (e.g., action to quiet title)

Question 33

Quasi in rem - Personal Jurisdiction

Answer 33

Quasi in rem - permits a court without PJ to determine certain types of disputes between P and D when property is located in the forum state

• Property is attached for some reason not necessarily involving property itself - e.g., action against D and his assets due to fears D will flee state
• Court may render judgment as to persons with respect to property (rather than judgment over person or property itself)

Question 34

Statutory Limitation analysis by fed court

Answer 34

State laws often determine when courts may exercise jx

• A fed. court must analyze jx as would a state court in which it sits and must follow applicable state statutes
• Note - court’s exercise of jx must also satisfy constitutional requirements

Question 35

State Statutes grants Personal Jurisdiction when?

Answer 35

1. Service of process - D is personally served in forum state (Duration of D’s presence irrelevant) (judicial procedures exception)
2. Domicile - D is domiciled in the forum state
   
   • Domicile= D maintains permanent home in forum state
   • Court can exercise jx over domiciled persons even if they are not physically present when served
3. Consent - D consents to jx (can be express or implied)
4. Long-arm - D’s acts fall within state’s longarm statute (Most common)
   
   • General reach to the extent of the constitution
   • Limited enumerated: Creates a rule for long arm PJ

Question 36

Constitutional limits to Personal Jurisdiction, general idea

Answer 36

To be subject to personal jurisdiction, the Defendant must have:

• such minimum contacts with the forum state that:
• exercising Jurisdiction does not offend traditional notions of fair play and substantial justice.

The Constitution’s Due Process (14th) only requires that corporations have sufficient minimum contacts with the forum state so as to comply with the “traditional conception of fair play and substantial justice.”

Question 37

Analysis for Constitutional Limitation on Personal Jurisdiction

Answer 37

1. Minimum Contacts
   
   • Purposefully availed; and
   • Knew or reasonably should have anticipated
2. Fairness and substantial justice
   
   • ​Relatedness
     
     • Claim has to be related to forum
     • Claim is unrelated to the forum, but D is at home
   • Convenience (no severe disadvantage to D)
   • State’s interest (state wants to give remedy to his citizens)
3. Notice must be given

Question 38

What constitutes Minimum Contacts?

Answer 38

1. Purposeful availment - D must purposefully avail herself of forum state’s laws. i. e., reach out in a non-accidental manner.
   
   • E.g .. using roads, doing business in-state, etc.
2. Foreseeability - D must know or reasonably anticipate that she could be held accountable for her activities in the forum state

BOTH NEED TO BE FULFILLED

Question 39

What gives rise to minimum contacts?

Answer 39

• Circumstances giving rise to minimum contacts:
  
  • Domicile (maintains domicile)
  • Consent; (can be expressed or implied) or
  • Presence in forum state (duration is irrelevant) (judicial procedure exception)

Question 40

When PJ is constitutionally fair? (Fairness Factors for Constitutional Limits to PJ)

Answer 40

Factors - look at three factors in determining if jx is fair:

1. Relatedness of contacts & claim: does the claim arise from D’s contacts with the forum state?
   
   • Specific Jx (related to claim) or General Jx (he is at home)
2. Convenience: would jx in forum severely Disadvantage D?
3. State interests: Does the state wants to protect its citizens? is interested in the case?

(This is one of the constitutional requirements, the other two would be minimum contacts and notice)

Question 41

Notice (Constitutional Limitation on Personal Jurisdction)

Answer 41

Due process requires that D must be sufficiently notified of a pending lawsuit

Requirement - notice must be reasonably calculated under the circumstances to apprise interested parties of the pendency of the action and afford an opportunity to be heard

Question 42

What can constrain a court personal jurisdiction?

Answer 42

Statutory limits and constitutional constraints on due process

Question 43

Circumstances that MAY give rise to minimum contacts

Answer 43

Circumstances that may give rise to minimum contacts:

• Website - Interactive sites are more likely to have requisite minimum contacts; passive sites less likely
  
  • Interactive - Two-way communication between users and operator (e.g., information exchanges for the purpose of soliciting business; purchases allowed)
  • Passive - site makes information available to interested viewers, but no business is transacted
• Putting goods into stream of commerce - manufacturers may be held liable if they could reasonably expect consumers to purchase their products in forum state
  
  • Mere awareness that component part may reach forum as part of another product may be insufficient
    
    • Expectation: YES
    • Awareness: NO

Question 44

General vs specific Jurisdiction (Fairness factors of jurisdiction; the relatedness of contacts & claim)

Answer 44

Relatedness of contacts & claim - does P’s claim arise from D’s contacts with the forum state?

• Specific jurisdiction - claims arise from D’s in-state contacts
  
  • Only minimum contacts must be established
  • D can only be sued for claims arising from in-state contacts
• General jurisdiction - claims do not arise from D’s in-state contacts
  
  • D has such systematic and continuous contacts that it is essentially “at home” in the forum state
    
    • D generally “at home” if it is incorporated or has principal place of business in forum state
  • If found, D can be sued for any claim arising in or outside of forum

Question 45

Type of long arm statutes

Answer 45

• General/unlimited long-arm statute - confers state’s courts with jx to the extent allowed by Const.
• Limited/enumerated Iong-arm statute - specifies when state courts can exercise j

Question 46

Methods of notice to fulfill notice requirements

Answer 46

Methods - traditional methods of notice satisfy due process

• E.g., personal delivery, registered mail, delivery to an appointed agent
• P need not deliver notice personally; can be given by court-appointed agent or agent hired by p
• If P knows that notice was not received by D (e.g., by mail), P cannot proceed if practical alternatives to giving notice exist

Question 47

What is venue?

Answer 47

Is the determination of the Judicial District (not the jurisdiction) in which P may bring suit

Question 48

When the venue is proper?

Answer 48

For more actions venue is proper where:

1. Any district when any D resides (granted that all D resides on the same State), then any District is proper
2. The district where the claim arose or where the property subject to the action is located
3. Fallback: If 1 and 2 are not possible, then any district where the D has PJ will work

Question 49

Residency (Venue)

Answer 49

• People: Domicile, place of permanent home (same as diversity)
• Business entities: Any district in which the Corp’s contacts would be sufficient to subject it to PJ if the district were a state.
  
  • If no such district exists, residency will be in the district where Corp. has the most significant contacts
• Unincorporated Associations: Residency determined by location of association itself, not individual members (different than diversity)

Question 50

Could you transfer a case from one fed district to another?

Answer 50

Yes, Courts must approve, but they do if done in the interest of justice (convenient to parties and witnesses, and public interests), and both venues were proper at the beginning

• (a). This means that you can transfer to any district with proper venue, PJ and SMJ, and
• (b). Any party may move to transfer venue, but court may refuse if original venue is proper)

Question 51

Discretionary decision (Venue transfer) (Venue in original district is proper)

Answer 51

Transfer is discretionary:

1. Court may order transfer based on convenience of parties and witnesses, and/or in the interest of justice.
2. Court discretion based on:
   
   • Public factors: what law applies, which community should be burdened with jury service, etc.
   • Private factors: Convenience (e.g. location of evidence, witnesses) B. If Venue is improper:

Question 52

Choice of law (Venue Transfer)

Answer 52

Transferee court applies choice of law rules of the original court, regardless of which party sought transfer.

• Exception: Transferee court will apply its own laws if the original venue was improper.

Question 53

Which are the options of the discretionary decision on Venue transfer when Venue in original district is NOT proper?

Answer 53

Court may transfer in the interest of justice or dismiss the case

Question 54

Forum non conveniens (what it is?)

Answer 54

If there is a far more appropriate court in which a case should be heard (separate judicial system, foreign country) the court in which the case was filed may decline to exercise Jx

Question 55

What factors a court would look into to determine a Forum nonconveniens?

Answer 55

Court evaluates based on same public and private factors as for venue transfer

• Requires strong showing of public and private interest to dismiss or stay

Question 56

Options for court granting forum non conveniens?

Answer 56

Either:

1. Stay the proceeding (suspend it)
2. Dismiss the case
   
   • usually without prejudice
   • dismissal is the only choice when transfer is impossible
   • dismissal is almost impossible if P is a resident on the present forum

Question 57

When improper venue must be raised?

Answer 57

Pursuant to Rule 12(b), improper venue must be raised in a defendant’s first response—either in its timely motion to dismiss before the answer or in the answer, whichever is first

Transfer of venue has no strict time limit when both forums are proper

Question 58

If D is sued in proper venue, but believes that another forum is more convenient since all witness are in that other forum. Can he request the transfer? what is the timing?

Answer 58

Venue may be transfered in the interest of justice. Transfer is left to the discretion of the trial judge, and the judge may refuse transfer where the case has been pending for some time and would work a prejudice to one of the parties.

Such a transfer has no strict time limit.

Question 59

How do you serve someone?

Answer 59

1. By personal service (made by a non-party older than 18)
2. Substituted service: Documents left with someone that lives in the D usual abode. 3P receiving documents must be competent
3. Trough D authorized agent (LLC Registered agent on the state)
4. Mail (if waived)
5. Any other method allowed by state law: (1) where the court seats; (2) where the D is effected)

Question 60

What is a Waiver of Service

Answer 60

A method of service, where the documents (complaint and a request of waiver) are sent by mail with a waiver form that needs to be signed and send back by D.

Waivure is only regarding the process of service, no the right to object venue or PJx

D likes it because it gives them 60 instead of 21 days to respond

Question 61

Effects of waiver of service (what is waived, and days counted)

Answer 61

Waivure is only regarding the process of service, no the right to object venue or PJx

Gives D 60 days instead of 21 days to respond

If D doesn’t answer no service has been made (extra 3 days)