Subject Matter JD Flashcards
When do courts have Federal Question JD?
District courts have original JD of all civil actions arising under the constitution, laws or treaties of the US.
FQ JD exists if a COA in question is expressly created by federal law and federal law provides the underlying right, or if a right is created by federal law and a COA can be fairly implied and was intended by Congress.
What is a “well-pleaded” complaint” and when is it needed?
FQ JD only exists the plaintiffs files a well-pleaded complaint which means that the federal issue must be presented on the face of the complaint (P’s COA, not defenses, answers or counterclaims).
When do courts have Diversity JD?
Federal cts have JD when parties are:
citizens of different states, or
citizens of a state and citizens of a foreign state.; and
the amount in controversy exceeds $75,000.
How is citizenship of individuals determined for
diversity JD?
An individual is domiciled in a state in which the individual is present and intends to reside indefinetly; they can only have one domicle at a time and the domicile is determined when action is commenced.
How is citizenship of Corporations determined for
diversity JD?
Citizenship is the state of incorporation and the state where it has its principal place of business (the “nerve center” from which high-level officers direct the business).
What is the standard of proof necessary for
Amount in Controversy? (AIC)
P’s good-faith assertion in complaint is sufficient unless there is a legal certainty that P can’t recover alleged amount.
When can claims be aggregated to meet the AIC requirements?
What about counterclaims?
Aggregation of claims is permitted for single P against single D, or multiple P’s with a common or undivided interest against a single D.
Single P against multiple D’s, each claim against each D has to meet AIC individually.
Permissive counterclaims must meet AIC req’t; compulsory counterclaims do not have to.
When does supplemental JD generally apply in
Diversity JD?
Claims arising out of a common nucleus of operatie fact can come in without meeting AIC as long as one P has minimum.
Does the court have supplmental JD for
Permissive Joinder?
The court may have Supp JD as long as the addition of the P asserting the claim does NOT destroy complete divesity, There claim does NOT have to meet AIC.
Does the court have Suupplmental JD for
Counterclaims?
The court may exercise supplemental JD over compulsory counterclaims and they do not have to meet AIC minimum. If the counterclaim is permissive then AIC minimum is required.
Does the court have Supplemental JD over
Cross-ClaimS?
If the cross-claim arises out of the same transaction or occurence of the initial claim, the court may exercise supplement JD without the claim meeting AIC minimum and without the parties have complete diversity.
When does Supp JD apply in
Federal Question JD?
Additional claims against the same party can be heard through supplemental JD if they arise out of a common nucleus of operative fact.
How does the court determine whether they will have removal JD over a matter generally?
The D’s right to remove to federal court is determined by the pleadings filed when notice to removed is filed. Removal must be to the district court for the district and division where the state court action is pending.
What must the court consider in a diversity JD matter when a D has exercised his right to removal?
Diversity must exist at the time of filing of original action as well as at the time the notice of removal is filed unless (1) the party preventing diversity is dismissed, or (2) a non-diverse party against whom P who has no appropriate claim was fraudulently joined to defeat diversity.
Also, if removal was based solely on diversity JD, the claim may be removed only if no defendant is a citizen of the state in which the action was originally filed.
Is removal JD appropriate to enforce a forum selection clause in a contract?
If a forum selection clause specifies a federal forum court, most courts treat that as “prima facie valid” and it will only be set aside if shown it would be unreasonable or unjust.
