Right court? Flashcards
Personal Jurisdiction
PJ is about the court’s power over the parties. Because P filed the case, the court automatically has power over P.
One question: can P sue D in this state?
PJ Two-step Analysis
1) Does PJ satisfy a state statute AND
2) Does PJ satisfy the Constitution (Due Process)
Same analysis whether the case will be filed in federal court or state court
Step One: statutory analysis
Each state is free to have its own statutes for in personam jdx. They vary, so content of statute is not testable. BUT, in most states, the statute says jdx is ok if the case meets the constitutional test.
Step Two: constitutional analysis
Does D have “such minimum contact with the forum so jdx does not offend traditional notions of fair play and substantial justice?”
PJ step two: clearly constitutional when D is:
1) domiciled in the forum, OR
2) consent, OR
3) is voluntarily present in the forum when served with process
PJ step two: when unclear whether unconstitutional
Contact
Relatedness
Fairness
PJ - Contact
There must be a relevant contact between D and the forum state. Two factors:
1) The contact must result from purposeful availment: D’s voluntary act –> D must reach out to the forum (maybe by trying to make money in the forum, using the roads there, marketed a product there, etc.)
2) Forseeability: it must be foreseeable that D could get sued in this forum
PJ - Relatedness
Relatedness between this contact and P’s claim. Ask: does the P’s claim arise from D’s contact in forum?
If yes, specific PJ
If no, jdx is ok only if the court has general PJ
Specific PJ
When the claim arises from D’s contact with the forum
General PJ
D must be home at the forum.
Where is a human at home: where domiciled
Where is a corporation at home: where incorporated and where it has its principal place of business (PPB)
If the court has general PJ, then D can be sued there for a claim that arose ANYWHERE in the world.
Fairness
Looks to whether jdx would be fair or reasonable under the circumstances. ONLY assessed for specific PJ.
1) Burden on D and witnesses - BUT, the relative wealth of the parties is not determinative
2) State’s interest - forum state might want to provide a courtroom for its citizens, who are allegedly being harmed by out-of-staters.
3) Plaintiff’s interest
In Rem and Quasi in Rem Jdx
Power is not over D herself, but over D’s property in the forum. It must be attached by the court at the outset of the case.
To be constitutional, D’s contact with the forum must meet the constitutional test we just applied in in personam.
Subject Matter Jurisdiction (SMJ)
This is about the court’s power over the case.
State courts can hear any kind of case (except for cases arising under a few federal laws - patent infringement, bankruptcy, etc.). They have general SMJ.
BUT, federal courts have limited SMJ. They can hear cases with diversity of citizenship, and about federal questions.
Diversity of citizenship and Alienage Cases
1) the case is either between “citizens of different states” (diversity) OR between “a citizen of a state and a citizen of a foreign country” (alienage) AND
2) the amount in controversy EXCEEDS $75,000
Who are the right kinds of litigants for a diversity or alienage case?
1) Complete diversity rule
2) Citizenship of a natural person
3) Citizenship of a corporation
4) Citizenship of an unincorporated association
5) Citizenship of decedents, minors, or incompetents
Complete Diversity Rule
Not good if ANY P is a citizen of the same state as ANY D.
Note: special rule that prohibits alienage if a green card alien is domiciled in the same U.S. state as a litigant on the other side of the case. If P (AZ) sues D (a green card alien who is domiciled in AZ) in federal court, there would be alienage but the statute would prohibit SMJ.
Citizenship of natural person
1) Determined by the U.S. state of person’s domicile.
2) Person cannot have more than one domicile
3) To establish a new domicile, there must be physical presence AND the intent to make that your permanent home (courts look at all relevant factors for intent)
4) Diversity is tested when the case is filed.
Citizenship of a corporation
1) state or country where incorporated AND
2) state or country of it PPB (where it managers direct, coordinate, and control corporation activities –> the “nerve center”, usually the headquaters)
Corp. can be a citizen of two states at a time.
Citizenship of an unincorporated association
1) Its citizenship of all of its members.
2) Where partnership was formed or its PPB are factors only for a corporation
3) Include ALL partners (general and limited)
Citizenship of decedents, minors, or incompetents
1) Such persons must sue or be sued through a representative
2) BUT, use the citizenship of the decedent, minor, or incompetent; the citizenship of the representative is irrelevant
Amount in controversy
1) P’s claim must EXCEED $75,000
2) Cannot count costs or interest on the claim (but can sometimes recover interest AS the claim)
3) Whatever the P claims in good faith is ok, unless it is clear to a legal certainty that she cannot recover more than $75,000
4) What the P wins is irrelevant to jdx. Jdx attaches at outset. BUT, a P who wins less than $75,000 may have to pay D’s litigation costs (basic expenses of litigation but not attorney’s fees)
Aggregation
1) Adding two or more claims by the same P to meet the amount required for SMJ.
2) Factually unrelated claims can be aggregated
3) No limit on the number of claims that can be aggregated
Equitable Relief
Two tests for non-monetary relief:
1) Plaintiff: did the injury to plaintiff decrease P’s property by more than $75,000? OR
2) Defendant: would it cost D more than $75,000 to comply with the injunction?
Cases a federal court will NOT hear:
1) Divorce
2) Alimony
3) Child Custody
4) Probate an Estate
