Subject Matter Jurisdiction

Question 1

What is subject-matter jurisdiction? (SMJ)

Answer 1

regards the court’s power over the CASE (not the parties like in PJ)

Question 2

What type of SMJ do federal courts have?

Answer 2

Federal courts have limited SMJ - can only hear certain kinds of cases

Question 3

What type of SMJ do state courts have?

Answer 3

State courts have general SMJ - can hear any kind of case (in their state court)

Question 4

What types of federal cases can state courts NOT hear?

Answer 4

i.e. patent infringement, bankruptcy, some federal securities, and antitrust claims

Question 5

What 2 main types of cases can be heard in FEDERAL court? (what jurisdiction does it have)

Answer 5

(1) Federal Question (FQ) jurisdiction
(2) Diversity of Citizenship jurisdiction // includes “alienage” jurisdiction

Question 6

Can parties waive SMJ?

Answer 6

No!!! A lack of SMJ cannot be waived (unlike PJ).

If a case does not invoke federal SMJ - the federal court cannot hear the case, and if it does, the judgment is VOID

Question 7

Diversity of Citizenship jurisdiction (elements)

Answer 7

2 requirements:
(1) Case is either:
- a) between citizens of different US states (diversity); OR
- b) between a citizen of U.S. state and a citizen of a foreign country (alienage); AND

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

Question 8

What is the first requirement of Diversity of Citizenship SMJ?

Answer 8

First Requirement: Who are the right kinds of litigants?

COMPLETE DIVERSITY RULE!

Question 9

What is the complete diversity rule?

Answer 9

Diversity of citizenship jurisdiction does NOT exist if ANY Plaintiff is a citizen of the same state as ANY Defendant // every defendant must be of a diverse state citizenship from each plaintiff

**diversity is determined at the time the case is FILED

Question 10

When is diversity determined? (for Diversity of Citizenship jurisdiction)

Answer 10

diversity is determined at the time the case is FILED// must have it when the case commenced (remember interpleader exception)

Question 11

What happens if Plaintiff is a U.S. Citizen but is domiciled outside the US (i.e. in Paris)

Answer 11

There is NO alienage jurisdiction (because we don’t have a non-US citizen)

AND there is NO diversity jurisdiction (because the plaintiff is not a citizen of a state - they are a U.S. citizen but they reside in Paris)

Question 12

What is the citizenship of a Natural Person (Human)?

Answer 12

The citizenship of a person who is a U.S. citizen is the ONE U.S. state in which she is DOMICILED
**a person can only have ONE domicile that is retained until it is changed.

Question 13

How does one establish a new domicile?

Answer 13

you would have to establish 2 things:
(1) PHYSICAL PRESENCE in the new domicile
and
(2) the INTENT to make that place your home for the indefinite future
– factors to look at for intent - taking a job, buying a house, joining civic organizations, registering to vote, qualifying for in-state tuition, etc.

Question 14

How do you treat the District of Columbia?

Answer 14

As a state!

Question 15

What is the citizenship of a corporation?

Answer 15

A corporate is a citizen of 2 places:
(1) of ANY state or country in which it is INCORPORATED;

AND

(2) ONLY ONE – of the ONE state or country in which it has its PRINCIPAL PLACE OF BUSINESS (PPB)

Question 16

Where is a corporation’s principal place of business?

Answer 16

It is the state from which the corporation’s managers DIRECT, COORDINATE, and CONTROL BUSINESS ACTIVITIES.

also called the NERVE Center
**usually the site of the corporate headquarters

Question 17

What is the citizenship of an UNINCORPORATED Association (Partnership, Limited Liability Corporation “LLC”, etc.)

Answer 17

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

If its a LIMITED partnership –> you include the citizenships of general AND limited partners

Question 18

What is the citizenship of Decedents, Minors, and Incompetents?

Answer 18

Decedents, minors, and incompetent person must sue or be sued through a representative; utilize the domicile of the represented person

**the representative’s citizenship is irrelevant. You use the citizenship of the decedent, minor, or incompetent.

Question 19

What is the citizenship in class actions?

Answer 19

Class action citizenship is that of the named representative(s) of the class is used.

Question 20

2nd Requirement of Diversity of Citizenship Jurisdiction: AMOUNT IN CONTROVERSY

Answer 20

The plaintiff’s claims must EXCEED $75,000

Question 21

How do you calculate the amount in controversy?

Answer 21

Only the claim itself is considered!

Litigation costs or interest (prejudgment) on the claim are not included// amount in controversy does not include interests and costs or counterclaims// DOES include attys fees and interest that are recoverable by statute or as part of the claim

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

what the plaintiff ultimately recovers does not matter (i.e. if recovers less than 75k - does not mean court did not have SMJ)

Question 22

Aggregation of Claims

Answer 22

Means adding TWO OR MORE CLAIMS to meet the amount in controversy requirement.

**Any SINGLE PLAINTIFF may aggregate ALL of her claims against a SINGLE defendant; the claims do not have to be related to each other

• one plaintiff may NOT aggregate SEPARATE claims against SEVERAL defendants
• one plaintiff may sue several defendants on a joint liability claim if it exceeds $75k
• several plaintiffs may aggregate claims against ONE defendant if seeking to enforce a single title or right

Question 23

Joint claims

Answer 23

For joint claims, you use the total value of the claim.

With joint claims, the number of parties is irrelevant.

Question 24

How do we calculate the ‘amount in controversy’ for EQUITABLE relief? (i.e. injunction, specific performance, rescission of a contract, etc.)

Answer 24

2 tests; and if EITHER is met, most courts find that the amount in controversy is satisfied.

1) Plaintiff’s viewpoint: If granted, does the relief requests have a VALUE of more than $75k TO THE PLAINTIFF?

2) Defendant’s viewpoint: If granted, will the relief requested by the Plaintiff COST THE DEFENDANT more than $75k?

Question 25

What are the excluded cases? (cases that where even if the requirement for diversity or lineage jurisdiction are met, federal courts refuse to hear them)

Answer 25

Federal courts refuse to hear actions for:
1) divorce
2) alimony
3) child custody;
4) action to probate an estate.

Question 26

What is a valid type of voluntary change of citizenship?

Answer 26

Plaintiff can create diversity by changing their state citizenship AFTER the cause of action accrued, but BEFORE the suit is commenced.

If it is a genuine change of citizenship, diversity is OK

Question 27

How do you satisfy federal question jurisdiction?

Answer 27

The Plaintiff’s claim must “arise under” federal law (i.e. federal constitution or federal legislation)

Question 28

What are the requirements of federal question jurisdiction?

Answer 28

• the pleader must follow the “WELL PLEADED COMPLAINT” rule –> it is not enough that some federal issue is raised by the complaint. The plaintiff’s CLAIM ITSELF must “ARISE UNDER” federal law.
• ask if the plaintiff is enforcing a federal right;
  — if the answer to this is YES - then the case can go to federal court under FQ Jurisdiction
  — if the answer to this is NO –> the case cannot go to federal court under FQ jurisdiction.

**citizenship of the parties is not relevant.
**the amount in controversy is not relevant.

Question 29

Supplemental Jurisdiction over federal question claims

Answer 29

a) pendent claims - federal court has discretion to hear state law claim IF it arises from a COMMON NUCLEUS of OPERATIVE fact as the federal claim such that the claims should be tried together;

b) pendent parties - must be common nucleus of operative fact

Question 30

What is REMOVAL?

Answer 30

Removal transfers the case from a STATE trial court to a FEDERAL trial court.

Question 31

Who may remove a case?

Answer 31

Defendant!

i.e. a Plaintiff sues a defendant in STATE court - but that defendant would prefer to litigate in FEDERAL court. The defendant might be able to “remove” the case to federal court

PLAINTIFF CAN NEVER REMOVE (true even if D files a counterclaim against the P that, by itself, could be heard in federal court).

Question 32

What happens if removal is IMPROPER?

Answer 32

If removal was improper, the FEDERAL court can “REMAND” the case to state court

Question 33

When is removal proper?

Answer 33

Generally, an action originally filed in STATE court may be removed by a defendant to FEDERAL court when the case COULD HAVE BEEN filed in a federal court (that is - federal question or diversity jurisdiction exists)

Question 34

What is the outcome of removal to federal court when the state court did not have jurisdiction?

Answer 34

Even when the state court has no jurisdiction because the action is exclusively federal, the federal court may hear and decide the case under its removal jurisdiction.

Question 35

How is a case removed?

Answer 35

the defendant files a “NOTICE OF REMOVAL” in federal court, stating grounds of removal, which means federal SMJ (diversity or FQ).

Permission of the state or federal court is nOT required.

the defendant attaches all documents that were served on her in state action.

Defendant then “promptly” serves a copy of the “notice of removal” on adverse parties and files a copy of the “notice of removal” in state court.

Question 36

When does the defendant have to remove?

Answer 36

The defendant must remove NO LATER THAN 30 DAYS AFTER SERVICE of the first paper that shows the case is removable.

**usually means no later than 30 days of service of process.

Question 37

Who must join in the removal?

Answer 37

ALL DEFENDANTS who have been served with process MUST join in removal.

They need not join in the same document; they can file separate notices of removal!

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

Question 38

Limitations on removal?

Answer 38

There are 2 limitations on removal based solely on diversity citizenship:
1) the case should not be removed if ANY DEFENDANT is a CITIZEN OF THE FORUM STATE (the “in-state defendant rule); AND

2) the case should not be removed MORE THAN ONE YEAR AFTER THE CASE WAS FILED IN STATE COURT

Question 39

When could a defendant file for removal more than a year after case was filed?

Answer 39

If they are able to show that Plaintiff originally joined the removal-destroying defendant to prevent removal.

Question 40

Where can a Defendant remove to?

Answer 40

there is only one place the defendant can remove to - and that is the federal district court that geographically embraces the state court where the case was filed.

**it does not matter if the state court venue would have been proper under the venue statutes.

Question 41

How does a plaintiff remand?

Answer 41

if the plaintiff thinks the case should not have been removed - they can move to remand to state court.

Question 42

How should a plaintiff move to remand on a basis OTHER THAN lack of SMJ?

Answer 42

If the motion to remand is based on a reason OTHER than lack of SMJ - she must move to remand no later than 30 days after the filing of the notice of removal. If plaintiff fails to do so - she waives the right to have the case remanded to state court and the case will stay in federal court.

Question 43

How should a plaintiff move to remand on basis of lack of SMJ?

Answer 43

If removal was improper because the federal court lacked SMJ - there is NO TIME LIMIT on ordering remand.

Remember that an objection to SMJ is NEVER waived, and a court without SMJ is powerless to act on the case.