Subject Matter Jurisdiction

Question 1

Who can object to subject matter jurisdiction, and when?

Answer 1

Anyone at anytime.

Question 2

Can a federal court with subject matter jurisdiction abstain from hearing a case?

Answer 2

Generally, a federal court with subject matter jurisdiction must adjudicate the controversy, even with similar state court action going on.

4 exceptions
1.) Resolution of a state law issue by the court would eliminate the need for the federal court to decide a federal constitutional issue.

2. ) Complex state regulatory scheme or matter of great state importance.
3. ) State action involves punishment for contempt, civil fine, and the federal court is asked to enjoin.
4. ) Beyond mere waste of judicial resources.

Question 3

What are the two types of subject matter jurisdiction, generally?

Answer 3

Federal Question and Diversity.

Question 4

Can subject matter diversity be waiver?

Answer 4

No.

Question 5

What is the presumption for subject matter jurisdiction?

Answer 5

A federal court must presume in absence of jurisdiction until it determines it has it.

Question 6

What is federal question jurisdiction?

Answer 6

District courts have original jurisdiction of all cases arising under the Constitution, laws, and treaties of the United States.

Question 7

What is the well-pleaded complaint rule?

Answer 7

Federal question jurisdiction exists only when the federal law issue is presented in the plaintiffs complaint.

Must consider only elements of the claim, not anticipated defenses, counterclaims, or answers.

Question 8

Do state and federal courts have concurrent federal question jurisdiction?

Answer 8

Yes. Unless Congress specifies otherwise.

Federal courts have exclusive jurisdiction of bankruptcy, patent and copyright, and Securities and Exchange Act.

Question 9

What is the scope of federal question jurisdiction?

Answer 9

Express - If the federal law provides the cause of action and underlying right.

Implied - if the federal law provides the underlying right, but not cause of action, and can be fairly implied and intended by Congress.

If neither, CANS; Federal question exists if

(C)an be adjudicated w/o disrupting federal/state balance.
(A)ctually disputed
(N)ecessarily raised
(S)ubstantial

Question 10

What is diversity jurisdiction?

Answer 10

When the parties are;
1.) Citizens of different states;
2.) Citizens of a state and citizens of a foreign state
3.) citizens of different states, and subjects of a foreign state;
4.) A foreign state and citizens of state(s)
AND
Amount in controversy is over $75,000
Note: Exactly $75 = no diversity. Must be $75,000.01 or higher.

Question 11

What are the two areas of state law excluded from diversity jurisdiction?

Answer 11

Probate and domestic relations.

Question 12

What is the Foreign Sovereign Immunities Act (FSIA)?

Answer 12

A suit may not be brought in federal or state court against a foreign state unless an exception applies such as committing tort in US, seizing property in violation of international law, or engaging in commercial activity.

Question 13

What is complete diversity?

Answer 13

Every plaintiff must be different from every defendant.

Question 14

What are the exceptions for complete diversity?

Answer 14

Minimal Diversity

1. ) Federal Interpleader Act
2. ) Class Actions with more than $5 million, class is at least 100 members, does not involve securities or internal affairs of corporation.
3. ) Interstate mass torts where at least 75 natural persons have died in one accident.

Question 15

What is the date of determination for diversity?

Answer 15

The time the case is filed.

Question 16

How is citizenship determined for diversity?

Answer 16

Individuals - Domicile

- Permanent residence (intent to remain + residence). 
- Consider factors such as property, voting, taxes. 

Represented Parties - Citizenship of represented.
- Exception: Decedent, Infant, Incompetent.

Class Actions - Citizenship of named/represented parties.

Corporations - State(s) of incorporation and principal place of business.

Partnerships, Unions, Trade Associations - State(s) where members are citizens.

Question 17

What is the rule for aggregation of claims for amount in controversy?

Answer 17

General Rule: One plaintiff vs. one defendant = plaintiff can aggregate.

    - One plaintiff vs. 2+ defendants = no aggregation.
    - 2+ plaintiffs vs. one defendant = no aggregation. 

Note: supplemental jurisdiction may still bring in other claims.

Question 18

What is the standard of proof for amount in controversy claims?

Answer 18

Good-faith assertion.

Note: if value of claim goes down after filing, as long as original claim meets amount in controversy requirement in good faith, subject matter jurisdiction is not lost.

Question 19

Are devices that create or destroy diversity allowed?

Answer 19

Yes. So long as not a sham.

I.e. moving, assignment of claims.

Note: Parties may not manufacture diversity by failing to join an indispensable party.

Question 20

What is supplemental jurisdiction?

Answer 20

A district court with jurisdiction over a claim may excise supplemental jurisdictions over other claims with a common nucleus of operative fact.

Federal Question

• Can have supplemental jurisdiction of state law claim (even if federal claim dismissed).
• pendant party jurisdiction over claims that involve the joinder or intervention of additional parties.

Diversity
- Permissive Joinder
- When plaintiff seeks to join under Rule 20
(permissive joinder), cannot violate complete
diversity.
- Counterclaims
- Compulsory: does not need to satisfy jurisdiction
amount.
- Permissive: does not qualify for supplemental
jurisdiction and must satisfy both complete
diversity and amount in controversy.
- Cross-Claims
- Does not need to meet complete diversity or
amount in controversy as long as court has
jurisdiction of original claim.

Question 21

What claims are precluded in diversity cases?

Answer 21

Supplemental jurisdiction precluded for;
1.) Claims by existing plaintiffs (but not defendants) against persons made parties under Rule 14 (impleader), Rule 19 (compulsory joinder), Rule 20 (permissive joinder) and Rule 24 (intervention);

2. ) Claims by persons to be joinder as plaintiffs pursuant to Rule 19; and
3. ) Claims by persons seeking to intervene as plaintiffs pursuant to Rule 24, when the exercise of supplemental jurisdiction over such claims would be inconsistent with the requirements for diversity jurisdiction under 28 USC Sec. 1332.

Question 22

When do courts have discretion to reject supplemental jurisdiction?

Answer 22

1. ) Novel or complex issues of state law
2. ) Supplemental claim predominates over the claims within original jurisdiction.
3. ) All of original jurisdiction claims dismissed.
4. ) Exceptional circumstances + other compelling reasons.

Question 23

What is removal jurisdiction, generally?

Answer 23

Removes a case from state to federal court or from one federal court to another.

Only a defendant may remove. All defendants must consent within 30 days of service.

Can remove if federal court would have had jurisdiction originally.

Question 24

What is the special rule for removal of a case based on diversity?

Answer 24

Must remove within one year unless plaintiff acted in bad faith to make the case non-removable.

Cannot remove to a state where defendant is a citizen.

Question 25

What is the typical removal procedure?

Answer 25

Notice of removal is filed in federal court, with a copy to state court. Once filed, state court jurisdiction ends.

If removal improper, plaintiff can file petition for remand with federal court.