Personal Jx

Question 1

Constitutional Test for In Personam JX

Answer 1

Does the D have such minimum contacts with the forum so jx does not offend traditional notions of fair play and substantial justice?

Automatic yes:

1) D is domiciled in the forum
2) D consents
3) D is voluntarily present in the forum when served with process

Question 2

Minimum Contacts:

Factors

Answer 2

1) contact must result from purposeful availment
—D voluntarily reaches out to the forum
—D can purposefully avail without setting foot in forum by causing an effect in the forum

2) It must be foreseeable that D could get sued in this forum

Question 3

Minimum Contacts:

“Relatedness”

Answer 3

Test: Does the P’s claim arise from D’s contact with the forum?

If yes —> Court has specific PJ (look to fairness)

If no —> no PJ unless court has general PJ—meaning D is at home in the forum (domicile, place of incorporation, principal place of business)

Question 4

Minimum Contacts:

“Fairness” Test & Factors

Answer 4

Would jx be fair or reasonable under the circumstances?

Factors:

1) Burden on the D and witnesses (need a “severe disadvantage in the litigation”)
2) State’s interest (always has one if P is a citizen)
3) Plaintiff’s interest

Note: the fairness factors apply only when the court has specific jurisdiction

Question 5

When do items in the stream of commerce fall under personal jx?

Answer 5

only if the seller of the item in the stream of commerce knows or hopes a product will end up in a particular state (e.g. marketing towards that state)

Question 6

When do websites fall under personal jx?

Answer 6

if the website is passive, no general jx but may be specific jx if the defendant is targeting readers in that state.

If the website is active (e.g. allows people to buy from the website), then there may be general jurisdiction

Question 7

General vs specific personal jx

Answer 7

General: defendant is at home in the forum state

Specific: court has jx only over some specific act of defendant (e.g. long-arm statute)

Question 8

What are two types of diversity jurisdiction?

Answer 8

1. between citizens of different states (complete diversity = all Ps and all Ds must be diverse from each other)
2. between citizens of a state and a citizen of a foreign country (except: alien domiciled in same state as other party is no diversity jx)

AND

amount in controversy is over $75K

Question 9

When is each party’s citizenship established?

Answer 9

at the time the suit is commenced

• so if party changes citizenship in the middle of the case, disregard that for citizenship analysis

Question 10

What determines the state of citizenship for a US citizen?

Answer 10

Domicile

Requires:

(1) physical presence; and
(2) intent to make it permanent home

Question 11

How do you determine the citizenship of a corporation?

Answer 11

(1) where incorporated; and

2) where its principle place of business is (nerve center = managers direct the corporate activities

Question 12

Determining citizenship for unincorporated associations, partnerships, and LLCs

Answer 12

Citizenship in every state where a member is a citizen

Question 13

Determining citizenship for class actions

Answer 13

citizenship in every state where the class representatives are domiciled

Question 14

Determining citizenship for legal representatives of decedent, minor, incompetent

Answer 14

citizenship in state where person being represented is domiciled

Question 15

Federal Question Jx: Rule

Answer 15

Federal court has jx if P’s claim arises under federal law

• well-pleaded complaint rule: federal question has to be on face of complaint and cannot be a defense, etc.

Question 16

What happens if a party adds sham claims or parties to try to manufacture diversity jx when it does not exist?

Answer 16

Court will ignore the sham party and not allow diversity jx

Question 17

Supplemental JX:

When is it needed and what is the test?

Answer 17

Needed for any claim that does not invoke diversity or federal question JX.

Test: Claim must share a common nucleus of operative fact with the underlying claim—note: test met if claim arises from same transaction or occurrence.

Limitation: In a diversity case, all of P’s claims must meet the AIC requirement, unless there are multiple Ps and one of them does not meet the AIC requirement.

Question 18

Diversity JX:

Rules for Amount in Controversy

Answer 18

1) must be greater than $75k
2) do not consider costs or interest on the claim
3) amount of claim is whatever P claims in good faith, unless it is clear to a legal certainty that she cannot recover more than $75k

Question 19

Diversity JX

Aggregation for AIC

Answer 19

Def: Adding two or more claims to meet AIC requirement

Rules:

1) Can aggregate claims of one P against one D
2) If it’s a claim by one P against multiple Ds, can only aggregate the claims if the Ds are j+s liable
3) if it’s a claim by multiple P’s against one or more Ds, can only aggregate if they are seeking to enforce a single title or right to which they have a common or undivided interest
(3) If P wants equitable relief —> OK if the enjoined action would cost either the P or D >$75k

Question 20

Supplemental JX:

Discretionary Factors

Answer 20

Court can decline JX if:

1) State law claim is complex
2) State law issues would predominate
3) The underlying claim was dismissed early in the case.

Question 21

If the original claim is properly in federal court, do counterclaims require an independent source of federal jx?

Answer 21

Compulsory: automatically have supplemental jx because they have same transaction or occurence

Permissive: require an independent basis of jx (either supplemental or diversity/FQJ) because they are unrelated to the original claim

Question 22

Removal: Time for Removal

Answer 22

D must remove within 30 days of the first paper that shows the case is removable

Question 23

Removal:

Who must remove?

Answer 23

All Ds who have been served with process (must be unanimous)

Note: The time for removal starts over as Ds are served.

Question 24

Removal:

When can a case be removed?

Answer 24

General rule: D can remove a case that meets the requirements for diversity of citizenship or federal question.

Exceptions for Diversity cases ONLY:

1) No removal if any D is a citizen of the forum (in-state defendant rule).
2) No removal more than one year after case was filed in state court.

Question 25

Removal:

Where can you remove?

Answer 25

The federal district embracing the state court where the case was filed.

Question 26

Removal:

How can you remove?

Answer 26

1) file notice of removal in federal court
2) stating grounds for removal
3) serve notice on adverse parties
4) file copy of notice in state court

Note: In a potential diversity case, D can allege that the AIC does in fact exceed $75k.

Question 27

Removal:

When can a Plaintiff remand to state court?

Answer 27

If removal was improper for some reason other than SMJ —> must move to remand within 30 days of notice of removal

If removal was improper for lack of SMJ —> P can always move to remand (no time limit)

X = if P is invoking the in-state defendant rule, must move to remand within 30 days

Question 28

The Erie Doctrine:

When does it apply?

Answer 28

ONLY In a DIVERSITY case in federal court

Question 29

The Erie Doctrine:

Three Steps

Answer 29

1) Is there some federal law (Constitution, Statute, Rule, Federal Common Law) on point that directly conflicts with state law? If so —> apply federal law, as long as it’s valid (Supremacy Clause)

Note: an FRCP is valid if it does not modify a substantive right—i.e., it’s “arguably procedural”

2) If no fed law on point —> apply State law if issue to be determined is substantive or federal law if it is determined to be procedural

Question 30

The Erie Doctrine:

When is an issue “substantive”

Answer 30

1) Elements of a claim or defense
2) Statute of limitations
3) Rules for tolling statutes of limitation
4) Choice of law rules

If not in above categories, apply factors:

1) Would application of state law be outcome determinative?
2) What is the balance of interests?
3) Would application encourage forum shopping?