Subject Matter Jurisdiction

Question 1

what kinds of cases can state courts NOT hear

Answer 1

patent infringement

bankruptcy

some federal securities and antitrust claims

[otherwise, most cases arising under federal law can be heard by state courts]

Question 2

what kinds of cases can a federal court hear?

Answer 2

(1) federal question cases

(2) diversity of citizen cases

Question 3

can lack of subject matter jurisdiction be waived?

Answer 3

No

if there is a lack of SMj, federal court cannot hear the case

if it does, the judgment is void

Question 4

Requirements for diversity of citizenship jurisdiction

citizenship requirements

Answer 4

(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

Question 5

if citizen of country 1 wants to sue citizen of country 2 in federal court, is that permissible? where must the suit be filed?

Answer 5

no - there is no alienage jurisdiction or diversity jurisdiction

can be filed in state court

Question 6

effect of green card on citizenship for diversity purposes and exceptions

Answer 6

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Exception - Alienage jurisdiction is withdrawn when green card holder is domiciled in the same state as a party on the other side of the case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”

Question 7

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?

Answer 7

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]

Question 8

Requirements of alienage jurisdiction

quirks of permanent residents

Answer 8

(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

Question 9

what types of diversity jurisdiction are allowed in federal court

Answer 9

diversity jurisdiction

alienage jurisdiction

Question 10

how to change your domicile

Answer 10

(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

Question 11

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?

Answer 11

NO – she has intent but did not establish physical presence

Question 12

can DC citizens sue each other in federal court under diversity jurisdiction?

Answer 12

Treat DC as a state - no

Question 13

where is a corporation a citizen?

Answer 13

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)

Question 14

what is the citizenship of an unincorporated association? – partnership, limited liability company, etc.

Answer 14

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.

Question 15

what is the citizenship of decedents, minors and incompetent persons

Answer 15

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.

Question 16

citizenship for class actions

Answer 16

citizenship of named representative of the class is used

Question 17

how to calculate amount in controversy for damages and for injunction?

Answer 17

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

Question 18

what does it mean to say the claim must exceed $75,000 for diversity of citizenship?

how certain does it have to be?

Answer 18

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

Question 19

to what extent can claims be aggregated to reach $75,000?

Answer 19

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]

Question 20

what are excluded from diversity and alienage jurisdiction even when all the elements are met?

Answer 20

divorce

alimony

child custody

actions to probate an estate

Question 21

to what extent is voluntary change of citizenship allowed for diversity jurisdiction?

Answer 21

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

Question 22

may you create diversity by sham transaction? [such as assigning a claim for collection purposes merely to create diversity?]

Answer 22

NO - courts ignore transaction and declares that there is no diversity

Question 23

how do you get federal question jurisdiction

Answer 23

(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

Question 24

what is removal

when is removal permissible

who can remove

who must join in removal

Answer 24

what is removal:
defendant can remove cases from state court into federal trial court
.
.
.
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]
.
.
.
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]
.
.
.
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.

Question 25

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]

Answer 25

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

Question 26

what is the removal venue?

Answer 26

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.

Question 27

how to remove to federal court and timing

Answer 27

(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]

Question 28

does a state need to have had jurisdiction to hear the case for it then to be removed to federal court?

Answer 28

no, state need not have had jurisdiction to be removed

Question 29

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?

Answer 29

yes lol

Question 30

is there diversity jurisdiction between a citizen of Idaho and a citizen of the US who is domiciled in Japan?

is there alienage jurisdiction?

Answer 30

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]

Question 31

in general, when does remand occur and not occur

Answer 31

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

Question 32

in a federal question case, the action is always deemed commenced for SOL purposes when …

Answer 32

complaint is filed with the court

Question 33

for diversity purposes, what status does a legal representative of a decedent assume?

Answer 33

legal representative of a decedent (like an executor) assumes the state citizenship of the decedent