Subject Matter Jurisdiction

Question 1

What is subject matter jurisdiction?

Answer 1

Subject matter jurisdiction describes the court’s power over the case rather than the parties. A court has subject matter jurisdiction when it is constitutionally permitted to decide a case on the merits.

Federal courts have limited subject matter jurisdiction, while state courts have general subject matter jurisdiction (i.e., federal courts may not usually hear purely state law claims, but state courts can hear almost any kind of case).

Question 2

What kind of cases can state courts NOT hear? (4)

Answer 2

(1) patent infringement
(2) bankruptcy
(3) some federal securities
(4) antitrust

Question 3

What are the three ways a court may gain subject matter jurisdiction?

Answer 3

(1) case involves a federal question
(2) diversity of citizenship between the parties
(3) supplemental jurisdiction of state claims if (1) or (2) is present

Question 4

May subject matter jurisdiction be waived?

Answer 4

No. Unlike PJ, SMJ cannot be waived. If a case does not invoke federal SMJ, the federal court cannot hear the case. If it does, the judgment is void.

Question 5

What are the 2 requirements for diversity of citizenship cases?

Answer 5

(1) The case is either (a) between citizens of different U.S. states (diversity) OR (b) between a US citizen and a foreign citizen; AND
(2) The amount in controversy exceeds $75,000

REMEMBER, $75,000 exactly is NOT SUFFICIENT—it must exceed $75,000, so $75,000.01 would work.

Question 6

What is the complete diversity rule?

Answer 6

Diversity of citizenship jurisdiction does not exist if ANY plaintiff is a citizen of the same state as ANY defendant.

Question 7

When is diversity determined?

Answer 7

When the case is filed

Question 8

Are permanent residents (green card holders) citizens of the state in which they’re domiciled for purposes of diversity/alienage jurisdiction?

Answer 8

Permanent residents are NOT citizens of a state for diversity purposes. The party will be subject to alienage jx. instead.

However, jx. is withdrawn if the permanent resident is domiciled in the same state as an adverse party.

Question 9

How is citizenship of a natural person (human) determined?

Answer 9

A natural person may have only one US state in which she is domiciled. Everyone has a domicile, and that domicile remains until it is changed.

“Domicile” does not mean “house” or “apartment.” It means the place a person calls “home.”

Question 10

How is citizenship of a corporation determined?

Answer 10

A corporation is a citizen of ANY state or country in which it is incorporated AND of the ONE state in which it has its principal place of business.

Question 11

What is a corporation’s principal place of business?

Answer 11

The state from which the corporation’s managers direct, coordinate, and control business activities (i.e., the “corporate nerve center,” usually the site of corporate headquarters.

Question 12

How is the citizenship of an unincorporated association (e.g., a partnership or LLC) determined?

Answer 12

Unincorporated associations take on the citizenships of ALL of its members.

(So, even if it’s a limited partnership, citizenships will count both for general partners and for limited partners.)

Question 13

How is citizenship determined for class action suits?

Answer 13

Citizenship of the named class representative(s).

Question 14

In addition to complete diversity or alienage, to attain diversity jurisdiction, the amount in controversy must exceed _______.

Answer 14

$75,000

Question 15

For purposes of meeting the diversity jurisdictional amount in controversy requirement, a single plaintiff may _______ against a single defendant.

Answer 15

aggregate all of her claims

Question 16

For purposes of the diversity jurisdictional amount in controversy requirement, what is the rule for joint claims?

Answer 16

Use the total value of the claim

(Ordinarily, a plaintiff may only aggregate claims as to one defendant, but in the case of joint defendants, each of whom may be individually liable for the full judgment, we only look at what the total value of the claim is, taking the joint defendants to be “one” defendant.)

Question 17

How do we determine the amount in controversy where the plaintiff seeks equitable relief (e.g., injunction, specific performance, etc.) rather than money damages? (2 tests + application)

Answer 17

(1) plaintiff’s viewpoint: does the requested relief have a value of more than $75,000 to plaintiff if granted?
(2) defendant’s viewpoint: would the requested relief cost defendant more than $75,000?

(Application) If EITHER is met, amount in controversy is satisfied.

Question 18

What kinds of cases are excluded from diversity jurisdiction, regardless of whether the requirements are met? (4)

Answer 18

(1) Divorce
(2) Alimony
(3) Child custody
(4) Actions to probate an estate

Question 19

What is required for federal question jurisdiction?

Answer 19

The plaintiff’s claim itself must “arise under” federal law.

In other words, the plaintiff must be seeking to enforce a federal right.

Question 20

What is removal? Under what circumstances may a case be removed?

Answer 20

Removal transfers a case from a state trial court to a federal trial court.

The defendant may remove a case to federal court if plaintiff could have filed the claim in federal court. In other words, removal is only appropriate if the federal court has subject matter jurisdiction.

Question 21

What happens if a case is improperly removed to federal court?

Answer 21

The federal court can remand the case back to state court.

Question 22

What steps must a defendant take to remove a case to federal court?

Answer 22

(1) D files “notice of removal” in federal court, stating grounds of removal (federal SMJ) and attaching all documents that were served on her
(2) D “promptly” serves a copy of the notice of removal on adverse parties
(3) D “promptly” files a copy of the notice of removal in state court

Question 23

When may a defendant remove a case?

Answer 23

No later than 30 days after service of the first paper that shows the case is removable.

(Usually, this means no later than 30 days after service of process.)

Question 24

Who must join removal? (+ wrinkle)

Answer 24

All defendants who have been served with process must join in removal.

If defendants are served at different times, and a later served defendant initiates timely removal, and earlier served defendant may join in removal even though her 30-day period for initiating removal may have expired.

Question 25

True or false: If the defendant files a counterclaim against the plaintiff that could be heard in federal court, the plaintiff may remove.

Answer 25

FALSE. A plaintiff may NEVER remove.

Question 26

What are the two limitations on removal based solely on diversity of citizenship?

Answer 26

(1) Case may not be removed if D is a citizen of the forum state (e.g., if P files in state court in D’s home state, D may not remove the case to federal court)
(2) Case may not be removed more than one year after the case was filed in state court (e.g., if a claim against a defendant that destroyed diversity is dismissed, leaving only diverse parties, the case may not be removed if more than one year has passed since the case was filed)

Question 27

When a case is removed, which federal court will it be removed to?

Answer 27

the federal court “embracing” the state court where the case was filed (i.e., the federal district where the state court is located)

Question 28

If a plaintiff’s motion to remand is based on any reason other than for lack of subject matter jurisdiction, when must she file the motion?

Answer 28

No later than 30 days after the filing of the notice of removal

Question 29

If a plaintiff’s motion to remand is based on lack of subject matter jurisdiction, when may she file?

Answer 29

At any time

An objection to SMJ is never waived. Federal courts are powerless to act without SMJ.

Question 30

What is supplemental jurisdiction?

Answer 30

Supplemental jurisdiction may apply to claims between plaintiff(s) and defendant(s) that otherwise would not qualify for federal SMJ, but are included with claims that do qualify.

Federal courts may hear such claims, subject to some limitations.

Question 31

What is the common nucleus test for supplemental jurisdiction?

Answer 31

A federal court may exercise supplemental jurisdiction over a claim that does not satisfy federal SMJ if it shares a “common nucleus of operative fact” with the claim that satisfied federal SMJ.

In other words, if the non-SMJ claim arises from the same transaction or occurrence with the SMJ claim, a court may exercise supplemental jurisdiction.

Question 32

What is the limitation on supplemental jurisdiction in diversity cases? (+ exception)

Answer 32

Claims by plaintiffs generally cannot invoke supplemental jurisdiction?

(EXCEPTION) If there are multiple plaintiffs in a diversity case, each with claims arising out of the same transaction or occurrence, the court may exercise supplemental jurisdiction over a claim by one or more plaintiffs that do not meet the amount in controversy requirement ONLY IF at least one plaintiff does.