SMJ/Supp Jx/Erie (Modules 4-5)

Question 1

What is SMJ?

Answer 1

Court’s power over the case (versus PJ which is power over the parties)

Can either hear complete diversity or federal question cases

Question 2

Diversity Jx

Answer 2

1) Complete diversity

• no P and D can be from the same state (two ps or two ds can be though)
• determined at time of filing

2) AIC over $75k
- P needs to make good faith allegation it’s over this amount
- punitive damages can be considered in calculating

Question 3

Citizenship for Complete Diversity (Persons, Corps, Unincorp Business, Class Action)

Answer 3

Natural Persons - where they are domiciled (i.e., present and intend to remain there indefinitely)

Corporations - citizen of every state they’re incroproated and the one state they have their principal place of business

Unincorporated Business - citizens of every state which any member is a citizen (LLCs, parternships, etc.)

Class Actions - representative of the class is what determines

Question 4

AIC/Aggregation Rules

Answer 4

Good faith allegation that amount of damages exceeds $75k

Single P Single D
- Single P can aggregate all their claims against a single D; claims do not have to be related

One P Multiple D’s
- if it’s a joint claim against all the D’s can aggregate the total

Equitable Claims
- two diff methods; either from P or D’s POV, what the total value/cost of the injunction would be

Question 5

Federal Question Jx

Answer 5

Well Pleaded Complaint rule

• P must be enforcing a right that arises under (and not just implicates) fed statute, regulation, or constitution

Question 6

Test for Supplemental Jx (by defendant)

Answer 6

1) Does court have diversity or FQ jx over the additional claim; if yes then it can be heard

2) If no, does the additional claim arise from a CNOF as the original claim? If yes can be brought in

Question 7

Test for Supplemental Jx (by plaintiff)

Answer 7

1) Does court have diversity or FQ jx over the additional claim; if yes then it can be heard

2) If no, does the additional claim arise from a CNOF as the original claim?

3a) If original claim was based on FQ it can be brought in

3b) If original claim based on diversity, can only be brought in if:
- there are multiple Ps
- the additional claim is below the AIC
- there is still complete diversity

Question 8

Court Discretion over Supplemental Jx

Answer 8

Court can still decline to exercise supp jx even if all the factors are met

Would do so if:
1) the state law claim is complex
2) state law issue would predominate the case, or
3) if the claim on which SMJ is based is dismissed early in teh case

Question 9

Removal Jurisdiction Rules

Answer 9

1) Court had SMJ in the first place

2) Only D can remove

3) Must be to district court “embracing” the state court

4) D who files a permissive counterclaim in state court waives the right to remove

5) D cannot remove if P filed suit in D’s home state (but if multiple Ds and the out-of-state D wants to remove, the in-state D can join in)

Question 10

Remand to State Court

Answer 10

If P wants to remand for any reason other than lack of SMJ, must do so within 30 DAYS after the FILING of notice of removal

If P wants to remand for lack of SMJ, then can do it anytime because SMJ is never waived

Question 11

Timing for Removal

Answer 11

D must remove within 30 days of receiving process

If it’s a diversity case with in-state defendant, and the in-state D is voluntarily dismissed, can be removed if it’s within 1 year of the case being filed in state court

Question 12

Procedure for Removal

Answer 12

1) D files notice of removal in federal court stating grounds (diversity or FQ)

2) D promptly serves notice of removal to adverse parties

3) D then files notice of removal in state court

Question 13

Who Must Join in Removal

Answer 13

All Ds who have been served with process must join

If Ds are served at separate times, and later served D files timely removal, then the earlier served D can still join in it even though their 30 days expired

Question 14

Erie doctrine

Answer 14

In diversity cases, fed. courts must apply state substantive law and fed. procedural law

Question 15

Erie Test

Answer 15

1) If FRCP, FRE, Statute/Reg, or Constitution conflict with state law then use federal

2) If issue is “substantive” (SOL, conflict of law, element of the claim/defense, or standard for granting new trial) use state law

3) If no to both:

a) Outcome Determinative
- would applying/ignoring the state rule affect the outcome of the case?
- if yes apply state law

b) Balance of interests
- does either the fed or state system have a strong interest in having its rule applied?
- use one with greater interest

c) Forum Shopping
- if fed court ignored state law on this issue would lead to forum shopping
- use state law