SUBJECT MATTER JURISDICTION

Question 1

Subject Matter Jurisdiction Checklist

Answer 1

• Subject Matter Jurisdiction
• Federal Question
• Diversity Jurisdiction
  
  • Complete Diversity
    
    • Natural Persons
    • Corporation
  • Amount in Controversy
    
    • Aggregation of Claims
• Supplemental Jurisdiction
  
  • Federal Question
  • Diversity
  • Discretion to Decline Jurisdiction

Question 2

Subject Matter Jurisdiction

Answer 2

Federal courts are courts of limited jurisdiction and are required to have subject matter jurisdiction to hear a case.

• *Subject matter jurisdiction exists if**
• *(i) there is a federal question**
• *(ii) diversity of citizenship between the parties, or**
• *(iii) supplemental jurisdiction.**

Subject matter jurisdiction is not waivable. Objections to subject matter jurisdiction can be raised at any time, including on appeal.

Question 3

Federal Question

Answer 3

Federal courts have original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the United States.

The federal question must appear as part of the plaintiff’s cause of action and must be present on the face of a well-pleaded complaint.

Question 4

Diversity Jurisdiction

Answer 4

Federal courts have diversity jurisdiction of all civil cases where

(1) there is complete diversity between the parties and
(2) the amount in controversy exceeds $75,000

Question 5

Diversity Jurisdiction - Complete Diversity

Answer 5

Complete diversity requires all plaintiffs to be citizens of a different state than all defendants.

Citizenship is determined at the time the suit is filed.

Question 6

Citizenship - Natural Persons

Answer 6

For individuals, citizenship is determined by the place of domicile. To establish domicile, an individual must

(1) reside in the state or U.S. territory with

(2) the intent to remain there.

A natural person can only have one domicile at a time, and a domicile remains the same until a new one is established.

Question 7

Citizenship - Permanent Resident Aliens

Answer 7

Generally, an alien who is admitted to permanent resident in the U.S. is considered a citizen of the state in which she is domiciled. To establish domicile, an individual must

• *(1) reside in a state with**
• *(2) the intent to remain there.**

Question 8

Citizenship - Non-Permanent Resident Alien

Answer 8

Diversity jurisdiction based on alienage exists when there is at least one foreign citizen on one side of the law suit and at least one state citizen on the other. If there are also non-U.S. citizens on both sides, the foreign parties need not be from different countries from one another to preserve diversity.

There is no diversity jurisdiction in an action by one alien against another.

Question 9

Citizenship - Corporations

Answer 9

A corporation is a citizen of

(1) every state in which it has been incorporated AND (2) the state where it maintains its principal place of business.

PPB refers to the headquarters or nerve center of the corporation where the corporation’s high-level officers reside and direct, control, and coordinate the corporation’s activities.

Question 10

Citizenship - Foreign Corporations

Answer 10

A foreign corporation is considered a citizen of

(1) the country in which it has been incorporated AND (2) state where it maintains its principal place of business if it is in the U.S.

Question 11

Citizenship - Unincorporated Associations

Answer 11

Unincorporated associations, such as partnerships or limited liability companies, are considered citizens of ALL states of which its partners, members, or owners are citizens.

Question 12

Amount in Controversy

Answer 12

The amount of controversy must exceed the sum or value of $75,000, exclusive of interest and costs and must be made in good faith.

The amount of controversy is determined at the time the suit is filed in federal court.

Question 13

Amount in Controversy - Aggregation of Claims

Answer 13

Single P v. Single D: P can aggregate all claims

Single P v. Multiple Ds: can aggregate ONLY if the defendants are joint tortfeasors

Multiple Ps vs. Single D: plaintiffs may aggregate their claims ONLY if they are “enforcing a single title or right of common or undivided interest”

Question 14

Supplemental Jurisdiction

Answer 14

A federal case has supplemental jurisdiction to hear additional claims as long as they arise from the same case or controversy as the original claim even though the court would lack SMJ to head the additional claims independently.

Question 15

Supplemental JX - Federal Question

Answer 15

Federal courts may have supplemental jurisdiction over additional parties or additional claims brought against the same or new defendants if the additional state claims arise form the state case or controversy.

Question 16

Supplemental JX - Diversity

Answer 16

In diversity cases, federal courts can always exercise supplemental jurisdiction over a claim if the claim

(1) arises from the same case or controversy as the original claim and

(2) does not destroy complete diversity.

Question 17

Supplemental JX - Discretion to Decline Jurisdiction

Answer 17

Federal courts may decline to exercise supplemental jurisdiction where

(i) the claim raises a novel or complex issue of state law,
(ii) the claim substantially predominates over the claim that qualifies for jurisdiction,
(iii) all claims over which the court had jurisdiction have been dismissed, or
(iv) there are other exceptional circumstances in which there are compelling reasons to decline jurisdiction.