Subject Matter Jurisdiction

Question 1

What cases can Federal Courts hear?

Answer 1

Federal court have limited SMJ and can hear only certain kinds of cases:

• Federal question cases
• Diversity of citizenship

Question 2

What cases can State Courts hear?

Answer 2

Generally, any kind of case (General SMJ)

Cannot hear these cases:
- Patent infringement
- Bankruptcy
- Some federal securities
- Antitrust claims

Question 3

Waiving SMJ

Answer 3

CANNOT be waived (unlike personal jurisdiction)

Question 4

What happens if a federal court hears a case WITHOUT federal SMJ?

Answer 4

The judgement is void

Question 5

Diversity of Citizenship Requierments

Answer 5

(1) The case is either
(a) between citizens of different U.S. states (diversity), or
(b) between a citizen of a U.S. state and a citizen of a foreign country (alienage); and

(2) The amount in controversy exceeds $75,000

Question 6

When is diversity determined?

Answer 6

When the case is filed

Question 7

Complete Diversity Rule

Answer 7

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

Question 8

How to establish a new domicile?

Answer 8

(1) physical presence in the new domicile and

(2) the intent to make that place your home for the indefinite future.

Question 9

What is the “citizenship” of an Unincorporated Association?

Answer 9

An unincorporated association takes on the citizenships of all of its members.

If it’s a limited partnership, you include the citizenships of general and limited partners.

Question 10

Citizenship of a permanent resident (green card holder)

Answer 10

Not a citizen of any state for diversity purposes.

Cannot invoke diversity, may involve alienage, BUT alienage jurisdiction is withdrawn if the permanent resident is domiciled in the same state as an adverse party

Question 11

Calculating the amount in controversy requirement

Answer 11

Good faith allegation by the plaintiff usually controls UNLESS there is a legal certainty the exceeding $75k is not possible.

Only the claim itself is considered. Litigation costs or interest on the claim are not included (unless you are suing for the interest on something)

Question 12

Aggregation of Claims to meet the amount in controversy requirement

Answer 12

Any single plaintiff may aggregate all of her claims against a single defendant. Multiple plaintiffs cannot do this.

No limit to the number of claims aggregated against a single defendant

Claims DO NOT need to be related to each other

Question 13

Can Joint Claims meet the amount in controversy requirement?

Answer 13

Yes. You can use the total value of the joint claim. The number of parties is irrelevant.

Question 14

Valuing Equitable Relief to meet the amount in controversy requirement

Answer 14

Two tests:
- Plaintiff’s viewpoint. If granted, does the relief requested have a value of more than $75,000 to the plaintiff?

• Defendant’s viewpoint. If granted, will the relief requested by the plaintiff cost the defendant more than $75,000?

Question 15

“Well pleaded complaint” Rule

Answer 15

It is not enough that some federal issue is raised by the complaint. The plaintiff’s claim itself must “arise under” federal law.

Question 16

When is there Federal Question Jurisdiction?

Answer 16

For there to be federal question jurisdiction, the plaintiff’s claim must “arise under” federal law.

Is the plaintiff is enforcing a federal right?
YES: the case can go to federal court under FQ jurisdiction.
NO: the case cannot go to federal court under FQ jurisdiction.

Question 17

Removal Definition

Answer 17

Procedure allowing defendant to move a case from state court to federal court.

If removal was improper, the federal court will REMAND it.

Question 18

Standard for Removal

Answer 18

A case filed in state court can be removed by the defendant if the case could have been brought in federal court (i.e., diversity of FQ jxd is met).

Question 19

How is a case removed?

Answer 19

Notice of removal (filed in the federal court)
- States grounds of removal (diversity or FQ)
- State court permission is not required
- Serves notice of removal on adverse parties
- File a COPY in state court

Question 20

Timing of Removal

Answer 20

The defendant must remove no later than 30 days after service (not filing) of the first paper that shows the case is removable.

Usually, that means no later than 30 days of service of process.

Question 21

Who Joins in Removal

Answer 21

All defendants served with process

If D’s served at different times, the earlier-served D may join later-served D’s removal even if their 30 day period expired.

Question 22

When can Plaintiff’s Remove?

Answer 22

Plaintiffs can NEVER remove, even if the defendant files a counterclaim against the plaintiff that, by itself, could be heard in federal court.

Question 23

Limits on removal based on diversity

Answer 23

Any D is citizen of the forum state

One year time limit

Question 24

When can the Plaintiff file for remand back to state court?

Answer 24

If the motion to remand is NOT based on lack of SMJ (e.g., the one-year limitation on the removal of a diversity case), must move to remand no later
than 30 days after the filing of the notice of removal.

If they fail to do so, they waive the right to have the case remanded to state court and the case will stay in federal court.

Question 25

30-day and 1-Year rules

Answer 25

A defendant has 30 days to remove a case from the time it becomes removable.

But, no removal more than one year after case was filed.

Comes up when the case becomes removable one year AFTER filing.