Subject Matter JDX Flashcards
Fed Q, Diversity, Supplemental, Choice of Law/Erie
How do you determine a corporation’s citizenship for the purposes of Diversity Jurisdiction?
A corporation is a citizen of every state or country where it is
1) Incorporated; and/or
2) Has its principal place of business (PPOB).
ESSAY TIP: How should you describe the rule regarding a corporation’s principal place of busniess?
The PPB refers to the nerve center of the corporation.
This is generally the location from which the high-level officers direct, control, and coordinate the activities of the corporation.
Diversity Jurisdiction
Diversity jurisdiction is established when the amount in controversy exceeds $75,000 and there is diverse citizenship between the opposing parties.
For example, diverse citizenship exists in a suit between U.S. citizens domiciled in different states.
What are ways diverse citizenship can be established?
If the suit is between:
1) U.S. citizens domiciled in the U.S. and foreign citizens
2) U.S. citizens domiciled in different states, in which foreign citizens are additional parties; or
3) U.S. citizens and permanent resident noncitizens domiciled in different states.
What are “stateless persons” and can they bring suit under Diversity Jurisdiction?
Diverse citizenship cannot be established if the suit involves stateless persons. These include:
1) Noncitizens present in the U.S. but not citizens of a foreign country; or
(2) U.S. citizens domiciled in a foreign country.
Do federal courts exercise SMJ over domestic-relations affairs?
No, even if the requirements for diversity JDX are met!
What does Amount in Controversy mean?
Diversity jurisdiction requires an amount in controversy that exceeds $75,000, exclusive of interests and costs.
Courts will not dismiss a case for lack of AIC if the plaintiff alleges more than $75,000 and there is a legally tenable possibility that the plaintiff will recover more than the threshold amount.
What is Removal? and what are it’s requirements?
Removal is the process of moving a civil suit from state court to federal court. Only the defendant may remove a case.
Requires:
1) Case could have originally been brought to federal court (had SMJ)
2) All defendants agree to removal
3) Removal motion is filed within 30 days after initial pleading or summons
4) No defendant is domiciled in the state where the federal court sits (In-State Defendant Rule)
What is Remand and when is it proper?
Remand is the process of moving a case from federal court to state court.
Can occur when:
1) Federal court lacks SMJ
2) When case was improperly removed to federal court
What is the Erie Doctrine?
Under the Erie doctrine for diversity cases, federal courts mut apply substantive state law and federal procedural law.
ESSAY TIP: When should you mention Erie, even briefly?
If there is a question about discovery or pleadings and the case is established to be in federal court under diversity.
Are res judicata and collateral estoppel substantive law issues for the purpose of Erie?
Usually yes!
What is supplemental jurisdiction?
Allows federal courts to exercise jurisdiction over additional claims that do not meet federal question or diversity jurisdiction.
Test is whether the claim arises from a common nucleus of operative facts as an original calculate.
