SMJ -- supplemental jdx and law applied in fed ct

Question 1

basic idea of supplemental jdx

Answer 1

• diversity and FQ SMJ get cases into fed court
• supplemental jdx GETS CLAIMS into a fed case even though the claims cannot use diversity of citizenship or FQ SMJ; so we MUST have a case that is already in fed ct based on FQ or diversity (there has to be something to supplement)

Question 2

definition of supplemental jdx

Answer 2

when the fed court has SMJ over one claim, it has discretion to exercise supplemental jdx over related claims that derive from same common nucleus of fact and are such that a pff would be expected to try them in one proceeding

Question 3

2 questions

Answer 3

maybe the plaintiff has additional claims or maybe there are counterclaims or crossclaims, etc.

1. ALWAYS check for diversity (diversity of citizenship AND over 75k)/FQ jdx over the additional claim
2. what if the additional claim does not satisfy requirements for diversity or FQ SMJ? the fed ct can still hear the claim if it can invoke supplemental jdx

Question 4

analysis

Answer 4

• we want to join the claim in the case that is properly in fed ct; we want to get that claim into case through supplemental jdx
  1. claim (usually state claim) we want to get into fed court must share a “common nucleus of operative fact” with claim that met federal SMJ – claim that got the case into fed ct to begin with; when claim arises from same T/O as underlying case, this test is always met (common nucleus of operative fact test is broader than T/O) & pff can be expected to try them in a single judicial proceeding
  2. supplemental jdx statute excludes certain claims EVEN THOUGH they meet common nucleus test

limitation: in DIVERSITY cases/the original case in fed court is a diversity case (limitation does NOT apply to cases that got into fed ct through FQ jdx) – claims by pffs generally cannot invoke supplemental jdx – the claims must meet diversity or FQ SMJ

one exception (co-plaintiff with a below-limit claim): when there are multiple pffs and claim by one of them doesn’t meet the amount in controversy requirement but diversity of citizenship met –> can use supplemental jdx

REMEMBER THAT defendants can generally use supplemental jdx (if original case got into fed court under diversity or fed question)!

Question 5

supplemental jdx discretionary factors

Answer 5

even if we meet requirements for supplemental jdx, ct can still decline it

it can do so if state law claim is complex

Question 6

when a pff has both federal and state based claims against a D and diversity jdx does NOT exist but fed question jdx does … fed court has

Answer 6

discretion to exercise supplemental jdx over the state law claim if the 2 claims derive from common nucleus of operative fact AND are such that pff would be expected to try them all in one proceeding

Question 7

erie doctrine

(diversity case is based on state law; but fed judge has to decide an issue—must she follow state law or is she free to ignore state law?)

Answer 7

fed court in diversity cases apply state substantive law and fed procedural law

1) is there some fed law on point that directly conflicts with state law? if so, apply fed law (supremacy clause) –> DO NOT FORGET THIS STEP

an on-point FRCP (and it’s procedural) governs so long as it’s valid!

2) if no fed law on point, fed judge has to apply state law if issue to be decided is substantive (e.g., elements of claim or defense, statute of limitations, conflict of law rules, motion for new trial standard, rules re tolling of statute of limitations)

3) if no procedural fed law on point and issue is not obviously substantive, fed judge has to determine whether issue is substantive or not (if yes, then judge applies state law)

a) outcome determinative - would state rule affect outcome of case? if so, it’s substantive so state law applies
b) balance of interests b/w fed and state system in having its rule appied
c) avoid forum shopping - if fed court applies fed law and not state law, would it encourage litigants to all go to fed court/forum shop? if yes –> state law is substantive and should be applied

Question 8

fed common law

Answer 8

• fed cts must apply that state’s substantive law (including state common law) in a diversity case
• there are areas where fed cts can make up law on their own – admiralty, etc. (just no GENERAL federal common law)