Subject Matter Jurisdiction Flashcards
what kinds of cases can state courts NOT hear
patent infringement
bankruptcy
some federal securities and antitrust claims
[otherwise, most cases arising under federal law can be heard by state courts]
what kinds of cases can a federal court hear?
(1) federal question cases
(2) diversity of citizen cases
can lack of subject matter jurisdiction be waived?
No
if there is a lack of SMj, federal court cannot hear the case
if it does, the judgment is void
Requirements for diversity of citizenship jurisdiction
citizenship requirements
(a) between citizens of different US states
AND
(2) amount in controversy exceeds $75,000
“complete diversity” = Ps must be from different states from all Ds, as determined when case is filed
“citizenship” = citizen of the ONE state in which you are domiciled, which is where you are present and intend to make your home for the indefinite future
if citizen of country 1 wants to sue citizen of country 2 in federal court, is that permissible? where must the suit be filed?
no - there is no alienage jurisdiction or diversity jurisdiction
can be filed in state court
effect of green card on citizenship for diversity purposes and exceptions
A non-US citizen who has a green card [permanent resident] who is domiciled in a US state is NOT a citizen of a US state.
Exception - Alienage jurisdiction is withdrawn when green card holder is domiciled in the same state as a party on the other side of the case
“the district courts shall not have original jurisdiction under this subsection of an action between citizens of a State and citizens or subjects of a foreign state who are lawfully admitted for permanent residence in the United States and are domiciled in the same State”
if there is complete diversity of citizenship between A v. B but two aliens from the same country want to join as additional parties so that it is A, F1 vs. B, F2, is that permissible?
Yes - as long as complete diversity of US citizenship
but if there is no US citizen on one side of the controversy, no diversity jurisdiction
i.e. cannot have F1 vs. F2 and B [and this is even if F1 and F2 are different foreign nationals]
Requirements of alienage jurisdiction
quirks of permanent residents
(1) between a citizen of a US state and a citizen of a foreign country
and
(2) Amount in controversy exceeds $75,000
permanent resident domiciled in state A vs. citizen of state B = ALLOWED [classic alienage jurisdiction]
permanent resident domiciled in state A vs. citizen of state A = NOT ALLOWED
Permanent resident alien vs. non-resident alien = NOT ALLOWED
US citizen domiciled in country X [Italy] v. US citizen domiciled in state A [Cali] = NOT alienage jurisdiction
[both US citizens = cannot have alienage]
*same “domicile” requirements as for diversity of citizenship jurisdiction
what types of diversity jurisdiction are allowed in federal court
diversity jurisdiction
alienage jurisdiction
how to change your domicile
(a) physical presence in the new domicile
and
(b) intent to make that place your home for the indefinite futures
Factors bearing on intent [court will look at all relevant factors]:
- taking a job
- buying a house
- joining civic orgs
- registering to vote
- qualifying for in-state tuition
if a citizen intends to mover permanently to another state and gets a job there and tells everyone, but on her way moving there she gets into a car crash, is she domiciled there?
NO – she has intent but did not establish physical presence
can DC citizens sue each other in federal court under diversity jurisdiction?
Treat DC as a state - no
where is a corporation a citizen?
A corporation is a citizen of:
(1) any state or country in which it is incorporated (usually one place)
and
(2) the ONE state or country in which it has its principal place of business, which is the state from which the corporation’s managers direct, coordinate and control business activities (nerve center, headquarters)
what is the citizenship of an unincorporated association? – partnership, limited liability company, etc.
An unincorporated association takes on the citizenships of ALL of its members.
[if all partners are citizens of 18 states, it is a citizen of 18 states]
If it’s a limited partnership, you include the citizenships of general AND limited partners.
what is the citizenship of decedents, minors and incompetent persons
Decedents, minors, and incompetent persons must sue or be sued through a representative, but you use the citizenship of the decedent, minor, or incompetent person.
citizenship for class actions
citizenship of named representative of the class is used
how to calculate amount in controversy for damages and for injunction?
DAMAGES
Only the claim itself is considered, including interest on a loan agreement or contract that you are suing to recover [because part of the claim itself]
NO litigation costs or interest on the claim such as prejudgment interest that results from delay of payment due to litigation
INJUNCTION [or other equitable form of relief]
Test 1/P’s viewpoint: if granted, does requested relief have a value of more than $75k?
[Ex: does stopping the building increase P’s property value by more than 75k?]
or
Test 2/D’s viewpoint: if granted, will the relief requested by the P cost the D more than $75,000?
or
test 3/both viewpoints: Followed by the fourth circuit! the amount in controversy requirement is satisfied if the amount under EITHER test exceeds $75k
what does it mean to say the claim must exceed $75,000 for diversity of citizenship?
how certain does it have to be?
EXCEED that amount …. $75k is not enough
whatever the plaintiff claims in good faith is ok unless it is clear to a legal certainty that she cannot recover more than $75,000
Ex: A plaintiff sues for $50,000 for breach of contract and $60,000 in punitive damages based on that breach of contract. Assume that relevant authority holds that punitive damages cannot be recovered in contract cases. Would the amount in controversy be satisfied? NO - clear to legal certainty that she cannot recover
to what extent can claims be aggregated to reach $75,000?
SINGLE PLAINTIFF AGAINST SINGLE D
- she may aggregate all her claims against a single D to reach the amount in controversy [claims need not be related]
MULTIPLE PLAINTIFFS AGAINST SINGLE D - SEPARATE CLAIMS
- they may not aggregate to reach amount in controversy requirement
SINGLE P AGAINST MULTIPLE DS
- she may not aggregate to reach the amount in controversy requirement unless it is against joint defendants - look to supplemental J
JOINT CLAIMS
- you can use the total value of the claim to reach amount in controversy [ex: P sues joint tortfeasors ABC for $75k]
what are excluded from diversity and alienage jurisdiction even when all the elements are met?
divorce
alimony
child custody
actions to probate an estate
to what extent is voluntary change of citizenship allowed for diversity jurisdiction?
you can create diversity by changing your citizenship after cause of action accrued but BEFORE suit is filed
if this is genuine change of citizenship, diversity is ok
may you create diversity by sham transaction? [such as assigning a claim for collection purposes merely to create diversity?]
NO - courts ignore transaction and declares that there is no diversity
how do you get federal question jurisdiction
(1) well pleaded complaint
Plaintiff’s claim must arise under federal law, it is not enough that some federal issue is raised in the complaint
(2) plaintiff must be enforcing a federal right
NOT - tort, K, property [state law]
NOTE: FQJ is not satisfied if FQ appears in D’s answer, counterclaim, or cross-claim, or if the complaint alleges federal issues only in anticipation of some defense
what is removal
when is removal permissible
who can remove
who must join in removal
what is removal:
defendant can remove cases from state court into federal trial court
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when is removal permissible:
(1) when case could have been filed in federal court under FQJ
or
(2) when case could have been filed in federal court under diversity jurisdiction UNLESS
[i] any D is a citizen of the forum state
or
[ii] it has been more than one year after the case was filed in state court**
**Exception: if the in-state D [or non-diverse D] is voluntarily dismissed from the case more than one year after the case was filed, the other D can remove to federal court if she can show that P originally joined the other D to prevent removal
[if the in-state D is voluntarily dismissed less than one year after case was filed, other D must remove within the normal 30 days]
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.
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who can remove:
defendant only - never plaintiff!
[P cannot remove even when D files counterclaim against P that, by itself, could be heard in federal court]
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who must join in removal:
all Ds who have been served with process must join, but need not join in same documents [can file separate notices of removal]
NOTE: If defendants are served at different times, and a later served defendant initiates timely removal, the earlier served defendant may join in the removal even though her 30-day period for initiating removal may have expired.
In general, what happens when removal is improper?
what happens if removal is improper due to lack of SMJ?
what happens when removal is improper due to some othe reason? [such as failure to comply with time limitations of one-year rule OR in-state defendant rule]
in general:
federal court remands case to state court
if no SMJ:
no time limit on ordering remand
if improper for another reason:
P must move to remand no later than 30 days after the filing of the notice of removal, otherwise, she waives the right to remand and case will stay in federal court
what is the removal venue?
The defendant removes to the federal district court “embracing” the state court where the case was filed.
It does not matter if this venue would have been proper under the venue statutes.
how to remove to federal court and timing
(1) D files notice of removal in federal court stating grounds for removal (SMJ) and must attach documents that were served on her in the state action.
(2) D promptly serves copy of the notice of removal on adverse parties
(3) D files a copy of the notice of removal in state court
NOTE: no need for permission from state or federal court to file notice of removal
TIMING:
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.
**Exception 1: if a non-diverse D or an instate D was dismissed such that now there is SMJ, and it has been less than one year after case was filed, current D has within 30 days of service of the dismissal of the prior D to remove to federal court
**Exception 2: if there are more than one D and the second D was served later than the first, and it has been more than 30 days since the first D was served but less than 30 days for the second D, the first D can join in the second D’s removal [the timing starts anew when a new D is served]
does a state need to have had jurisdiction to hear the case for it then to be removed to federal court?
no, state need not have had jurisdiction to be removed
A citizen of Bolivia sues a citizen of Australia concerning an automobile crash in China. In terms of SMJ, can a state court in New Mexico hear this case?
yes lol
is there diversity jurisdiction between a citizen of Idaho and a citizen of the US who is domiciled in Japan?
is there alienage jurisdiction?
NO DIVERSITY– for diversity jurisdiction, you need citizens of different US states. The citizen domiciled in Japan is NOT a citizen of a US state. No diversity jurisdiction
NO ALIENAGE – for alienage jurisdiction, you need an alien on one side (non US citizen) and a US citizen on the other side. This hypo has two US citizens [domicile in Japan does not make him an alien]
in general, when does remand occur and not occur
remand occurs when the action was commenced in state court and then improperly removed to federal court such that the P remands it back to state court
remand does not occur when case is filed in federal court originally and court realizes it does not have subject matter jurisdiction
in a federal question case, the action is always deemed commenced for SOL purposes when …
complaint is filed with the court
for diversity purposes, what status does a legal representative of a decedent assume?
legal representative of a decedent (like an executor) assumes the state citizenship of the decedent
