Pjx Smjx Venue Flashcards
What is the complete diversity rule?
Diversity jx requires COMPLETE diversity between the ALL πs & ALL ∆s
Citizenship= domicile
Natural person = presencein the state at some pointPLUSintent (subjective)to make that state your permanent or fixed home Can have ONLY 1 domicile
Corporation = domicile of (1) state of incorporation; AND (2) principal place of business (“nerve center”) Can have MORE than 1 domicile
Unincorporated associations (partnerships, etc) = domicile of ALL states of constituent members/partners Can have MORE than 1 domicile
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. IRRELEVANT if not diverse when issue arose. IRRELEVANT if not diverse after case is filed.
What is the necessary amount in controversy AND how do you calculate the amount?
You need AT LEAST $75,000.01 NOT including interest/costs of litigation
Valid unless it is “clear to a legal certainty” that P cannot recover $75k+
Ultimate recovery amount IRRELEVANT to jurisdiction (it could be $5)
NOTE: if π recoveres LESS that $75k, then she MAY have to pay ∆’s litigation (even tho she won!)
Aggregation = π adds 2 or more claims to meet AIC
If 1 π vs. 1 ∆, can be unrelated & no limit to # of claims aggregated
CANNOT aggregate unrelated claims for 2+ ∆s
For joint tortfeasors use total amount of claim
Value of injunction (discuss both viewpts on exam):
1) Majority view (π’s viewpoint) - does conduct hurt π by more than $75,000?
2) Minority view (∆’s viewpoint) - would it cost ∆ more than $75,000 to comply with the injunction?
What types of cases are excluded EVEN IF diversity reqs. are met?
Federal courts will not hear cases involving:
1) issuance of a divorce, alimony or child custody decree
2) probate of a decedent’s estate.
What is the Erie DoctrineAND how does it work?
RULE: “In DIVERSITY CLAIMS (or supp jx claims), federal court must apply state substantive law”
STEP 1: If federal law on point & directly conflicts w/ state law →apply fed. law as long as it is valid NOTE: FRCP are ALWAYS applied
STEP 2: No federal law on point: ask if state law is one of the following→ apply it, if so 1) Elements of a claim/defense 2) SOLs
3) Rules for tolling SOL 4) Conflict (or choice) of law rules
STEP 3: if not valid per STEP 2, ask: Would ignoring state law be outcome determinative? YES →apply state law Balance of state and federal interests in having their rule applied Is there a risk of forum shopping by applying federal law
What is the well-pleaded complaint rule?
Well-pleaded complaint rule – complaint on its face, w/o extraneous material, must ENFORCE a federal RIGHT π’s claim must “arise under” federal law (e.g. Fed. Cons, legislation) Exclusive federal jurisdiction in patent, BK cases Ex – RR gives Gomer a lifetime free pass but then says he can’t use it b/c federal statute prohibits it. Gomer sues, saying federal statute does not apply. NO federal jurisdiction b/c he is not suing to enforce a federal right – he is suing to not enforce the statute.
How is pjx assessed in fed cts?
Same as w/ NY state ct. See NY Practice flash cards
What is removal?
∆ (and ONLY ∆)can remove to federal courtIF case could have been filed in Fed. Ct. (diversity, alienage, FQ)
A “one way street”→ ∆ can only remove TO fed ct, never FROM (if improper, a fed judge will remand)
π can NEVER remove based on ∆’s counterclaim (as if he is now )
All ∆’s MUST agree to removal
PURE DIVERSITY CASE: ∆ CAN’T remove IF: (i) any ∆ is a citizen of the forum; OR (ii) tries to remove more than 1 yr after case was filed in state ct (unless there is some bad faith by π)
Waiver of Removal Rights
A ∆ who files a permissive counterclaim in STATE court probably waives the right to remove; BUT
A ∆ who files a compulsory counterclaim in STATE court - probably doesn’t waive right.
What is the procedure for a properremoval?
1) ∆ must remove within 30 DAYS of service of the first removable pleading on ∆
If NEW ∆ is joined, the “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 embracing the state ct where filed
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
What are the 2 kinds of cases that can be heard in fed ct?
1) Diversity of citizenship= Diverse citizenship (State A vs. State B) + Amt in controversy ($75k) Includes Alienage jx (State A vs. Country B)
2) Federal question = claim based on federal law/constitution
What is supplemental jx AND when can it be used in fed cts?
Once case is in fed. ct. (DIVERSITY or FED Q)→allows fed ct. to 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 “trxn or occurance”) with the underlying case (irrelevant if claim involves different ∆)
In a PURE DIVERSITY case, a π cannot use supplemental jx 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 supp jx 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 supp jx claim IF (i) Fed. Q. dismissed early; (ii) State law claim is complex; OR(iii) State law claim would predominate
Which federal court must the case be filed in?
RULE: π may lay venue in any district where: 1) either ALL ∆s reside
If ∆’s don’t SHARE a district, BUT are from the SAME state→ can lay venue in the distict where ANY of them live
“Residence” → humans “reside” in their domicile; corporations “reside” in all districts that can get pjx over corp
2) a substantial part of the claim arose
Make sure to discuss BOTH ways to lay venue
How can venue be transfered?
Can only transfer to a district court that has proper venue and pjx over the ∆ (w/o waiver by D)
1) If venue in original forum is proper→ may transfer to another federal district court based on (1) convenience of parties or witnesses (“center of gravity”); OR (2) interests in justice Ct. 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
What is service of process?
Delivering to ∆: (1) a SUMMONS (formal notice of suit and time for response); AND (2) copy of the COMPLAINT
Needs to be served w/in 120 DAYS after filing case (OTHERWISE, case is dismissed w/o prejudice unless π shows good cause)
Can be served by any NON-PARTY who’s 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 thru mail
Even tho ∆ waived formal service, he HASN’T waived pjx defense
If ∆ fails (without good faith) to return waiver form, SHE has to pay for service that π has to NOW effect
A fed ct in NY can serve process OUTSIDE NY only if a NY state ct could also (i.e. it has pjx)
