SMJ Flashcards
Subject matter jurisdiction
Subject matter jurisdiction means the court must have proper jurisdiction over the subject matter of an action. Federal courts have limited subject matter jurisdiction and may only hear cases involving federal questions or diversity of citizenship.
Federal question
Federal district courts have subject matter jurisdiction over civil actions arising under federal law (e.g., U.S. Constitution, federal statutes, treaties, etc.).
Diversity of citizenship
Federal district courts have subject matter jurisdiction over actions between citizens of different states, and where the amount in controversy exceeds $ 75,000.
Complete diversity is required
No plaintiff may be a citizen of the same state as any defendant.
Natural person’s citizenship is determined by his domicile
A person’s domicile is the state where he is physically present and has the subjective intent to make it his permanent home. Each person can only have one domicile at a time.
Corporation Domicile
A corporation is a citizen of a. The state where the business is incorporated; and b. The one state where the corporation has its principal place of business (PPB). A corporation may be the citizen of more than one state. The PPB is determined by the “nerve center” test and refers to the place where a corporation’s officers direct, control, and coordinate the corporation’s activities. Typically, this is where the corporation maintains its headquarters.
The amount in controversy
The amount in controversy must exceed $ 75,000, not including attorney fees.
- At the time of filing: The amount in controversy is determined at the time the action is filed.
- Aggregation: Claims can be aggregated to meet the amount if there is one plaintiff and one defendant, or if there are joint tortfeasor defendants.
a. However, if the plaintiff recovers less than $ 75,000, he may have to pay the defendant’s litigation costs.
b. The value of any counterclaim cannot be aggregated to meet the exceeding $ 75,000 requirement.
Exceptions to federal subject matter jurisdiction
Federal courts will not hear actions involving issuance of divorce, alimony, or child support, or to probate an estate.
California state court subject matter jurisdiction
California courts have general subject matter jurisdiction and can hear any case not within the exclusive jurisdiction of another court. Civil cases are classified as unlimited, limited, or small claims. If a case is misclassified, either party or the court may seek reclassification.
a. Unlimited civil cases-require an amount in controversy exceeding $ 25,000.
b. Limited civil cases-require an amount in controversy over $ 7,500, but not exceeding $ 25,000. There are limitations placed on the use of process and the equitable relief available, and a claimant cannot recover more than $ 25,000.
c. Small claims cases-require that, if the plaintiff is an individual, the claim is $ 7,500 or less; or if the plaintiff is a business entity, the claim is $ 5,000 or less.
Supplemental jurisdiction
Supplemental jurisdiction applies to provide subject matter jurisdiction when an additional claim does not itself invoke federal subject matter jurisdiction, but the additional claim shares a common nucleus of operative fact with a claim that does properly invoke federal subject matter jurisdiction (federal question or diversity.) A common nucleus of operative fact means that the claim arises from the same transaction or occurrence.
Removal jurisdiction
Removal jurisdiction allows the defendant to have a case originally filed in state court removed to federal court where the case could have properly been brought in either state or federal court.
a. Only defendants are eligible to remove cases.
b. Diversity case: In diversity cases, the defendant may not remove to federal court if he is a citizen of the forum state.
c. Venue: The case can be removed to a federal district court embracing the state court where the case was originally filed.
d. Timing: The defendant must remove no later than 30 days after service of the first “removable” document (typically service of the initial pleading), but never later than one year after the initial filing.
Remand
When a defendant attempts to remove a case to federal court and the removal is improper, the federal court can remand the case back to state court.
Timing: The plaintiff must move to remand the case within 30 days of the removal, however there is no time limit if the federal court lacks subject matter jurisdiction over the case.
