Subject Matter Jurisdiction

Question 1

What are the two main kinds of cases that can be filed in federal court?

Answer 1

1- Diversity of Citizenship

2- Federal Question

Question 2

Diversity and Alienage Cases Requirements

Answer 2

1- case is either (a) between “citizens of different states” (diversity) or (b) between “a citizen of a state and a citizen of a foreign country “ (alienage) AND
2- amount in controversy exceeds $75,000

Question 3

How to establish new domicile

Answer 3

1- physical presence in state &

2- intent to make that your permanent home

Question 4

Corporation citizenship

Answer 4

1- state or country where incorporated; AND

2- state or country where it has its principal place of business (nerve center- usually HQ)

Question 5

Unincorporated associations citizenship

Answer 5

use the citizenship of all members (including GP and LP)

Question 6

Decedents, minors or incompetents citizenship

Answer 6

their citizenship, not the citizenship of their representative

Question 7

Amount in controversy

Answer 7

Whatever the P claims in good faith unless it is “clear to a legal certainty” that P cannot recover more than $75,000

ex- claims punitive damages where they are not recoverable

Question 8

repercussion for winning less than amount in controversy ($75,000)

Answer 8

may have to pay D’s litigation costs

-usually loser pays but not in this case

Question 9

Aggregation

Answer 9

aggregate claims of one P v one D (not against all Ds)

Question 10

AIC with joint claims

Answer 10

use total value as AIC

Question 11

AIC with injunction (equity relief)

Answer 11

AIC is met if either of these two tests is over $75,000:

Does the encroachment decrease the value of P’s property by more than $75,000?

Would it cost D more than $75,000 to comply with the injunction?

Question 12

Exclusions from federal courts

Answer 12

fed courts will not issue a divorce, alimony or child custody decree; nor will they probate a decedent’s will

Question 13

Federal Question

Answer 13

complaint must show a right or interest founded substantially on a federal law. The claim must arise under federal law.

Well-Pleaded complaint rule- Is P enforcing a federal right?

Question 14

Does every additional claim need federal SMJ?

Answer 14

yes

If one claim does not, look to supplemental jurisdiction

Question 15

Supplemental Jurisdiction Test

Answer 15

claim we want to get in must share a “common nucleus of operative fact” with the claim that invoked federal SMJ

Test is always met when the claim arises from the same transaction or occurrence as the underlying case.

Question 16

Limitation on Supplemental Jurisdiction

Answer 16

in a diversity case, the P cannot use supplemental jurisdiction to overcome LACK OF DIVERSITY

can be used in FQ and in Diversity to overcome AIC

Question 17

Discretionary factors in supplemental cases

Answer 17

Court has discretion to NOT hear the supplemental claim:

(1) If the federal question was dismissed early in the proceedings; or
(2) if the state law claim is complex or (3) state law issues would predominate

Question 18

Removal- timing

Answer 18

within 30 days of the first paper that makes the case removable

starts anew with each new paper that is served that makes the case removable (ex- another D is served)

Question 19

Removal- who can remove?

Answer 19

All Ds served with process must join (unanimously)

Question 20

What kinds of cases can be removed?

Answer 20

General rule- one that would meet the req for diversity or FQ

exceptions, in diversity cases:

(1) no removal if any D is a citizen of the forum state (instate D rule) AND
(2) no removal more than one year after the case was filed in state court

Question 21

Where do we remove to?

Answer 21

federal district embracing the state court where it was filed

Question 22

Procedure for removal

Answer 22

D filed notice in fed court, stating grounds for removal
signed under Rule 11
attach all docs served on D in state action
copy to all adverse parties
then file copy of notice in state court

Question 23

If removal was procedurally improper

Answer 23

P moves to remand to state court;
must do so within 30 days of removal.

If there was no federal SMJ, P can move to remand ANYTIME (or the fed court can remand ANYTIME)

Question 24

Waiver of removal

Answer 24

D who files a PERMISSIVE counterclaim in state court probably waives the right to remove

Filing a COMPULSORY counterclaim in state court probably does not waive right to remove

Question 25

Erie Doctrine: Black letter

Answer 25

A fed court in a diversity case must apply state SUBSTANTIVE law

Question 26

Erie Doctrine: federal law that directly conflicts with state law

Answer 26

Apply fed law as long as it is valid due to supremacy clause

Question 27

Erie Doctrine: FRCP

Answer 27

Apply FRCP because it is arguably procedural

Question 28

Erie Doctrine: definite substantive law

Answer 28

1- element of claim or defense
2- Statute Of Limitations
3- rules for tolling SOL
4- conflict (choice ) of law rules

Question 29

Erie Doctrine: No fed law but fed judge seeks to ignore state law

Answer 29

if the issue is substantive, she must follow state law:

3 tests:
(1) Outcome determinative- would applying or ignoring the state rule affect outcome of case? If so, it is probably substantive rule so should use state law

(2) Balance of Interests- does either fed or state system have a strong interest in having its rule applied?
(3) avoid forum shopping- if the fed court ignores state law on this issue, will it cause parties to flock to fed court? If so, prob should apply state law.