Subject Matter Jurisdiction Flashcards
Subject Matter Jurisdiction
Refers to court’s power over the case
Federal court has two grounds for original SMJ:
* (i) Federal Question Jx
* (ii) Diveristy Jx
Each claim asserted in federal court must have basis for SMJ, but if it doesn’t fall under FQJ or DJ, it may fall under court’s supplemental jx
Lack of SMJ can be raised anytime, even on appeal.
Federal Question Jurisdiction
Under FQJ, plaintiff’s well-pleaded complaint must contain a cause of action arising under federal law. Claim “arises under” federal law is P is enforcing a federal right or interest substantially founded on federal law (federal common law, federal constitutional law, federal statutes).
Diversity Jurisdiction
Under DJ, there must be complete diversity at the time of filing the lawsuit and an amount in controversy over $75,000. Federal courts also have SMJ over “alienage” cases (suits between US citizen and a citizen of a foreign country). There is no SMJ if the foreign citizen is a US permanent resident domiciled in the same state as the adverse party.
Complete Diversity
* Every plaintiff must have diverse state citizenship from every defendant
* Individual: citizenship based on domicile (permanent home where he intends to live)
* Corporation: citizen of every (US/foreign) state in which it’s incorporated and the one state in which it has principal place of business (place where high level officers direct and control corporation’s activities)
Amount in Controversy
* Based on P’s good faith claim in complaint
* Single P can aggregate claims against single D
* Multiple P’s can aggregate claims against single D if they’re trying to enforce common/undivided interest
Supplemental Jx
If claim doesn’t fall under original SMJ, court can hear it under supplemental jx IF:
* There’s existing claim subject to original SMJ
* If existing claim subject to DJ, additional claims by joined plaintiffs that don’t meet amount in controversy requirement can be heard under supp jx if they arise out of common nucleus of operative fact.
* Plaintiffs can join together if there are common questions of law or fact
SUPP JX CANNOT DESTROY COMPLETE DIVERSITY
Removal
Party can remove case from state to federal court IF case could’ve been originally filed in federal court. This means federal court has SMJ over it.
* If one of the defendants is an in-state defendant, removal is NOT ALLOWED.
* D must seek removal within 30 days of discovering that case is removable, usually upon service of process (if case becomes removeable (ex. in-state D is dismissed from case with diversity jx), D must seek removal within 30 days, but no later than one year after case was filed UNLESS D can show P acted in bad faith to prevent removal)
* All defendants MUST join in removal
MAKE SURE TO ANALYZE IF NEW VENUE HAS SMJ and PJ
* Removal under FQJ requires that P’s well-pleaded complaint contain a claim arising under federal question.
* Removal under DJ requires complete diversity among parties and amount in controversy exceeding $75,000. Complete diversity means each plaintiff has diverse citizenship from each defendant. Individual is citizen of domicile and corporation is citizen of states in which it’s incorporated and the one state in which it has principal place of business (nerve center)
Remand
If a party removed a case to federal court, opposing party can seek to remand it back to state court. In evaluating whether to remand, federal court must decide if removal was proper.
* Party seeking remand must have done so within 30 days of removal
* If a defendant is domiciled in state where action is pending, removal NOT allowed.
Lack of SMJ can be raised anytime, even on appeal. Court MUST remand.
Venue
Venue refers to the proper district where matter will be decided.
Civil action may be brought in judicial district where:
* (i) if all Ds reside in same state, where any D resides
* (ii) substantial part of events arose OR substantial part of property involved in claim is situated
* If not (i) or (ii), where any D is subject to PJ
Corporation
* Resides in any judicial district in which it’s subject to personal jurisdiction for this case
* If multiple judicial districts in a state, corporation “resides” in judicial district with which it’s had sufficient “contacts” to subject it to PJ, if district were a state [has principal place of business, HQ, sufficient minimum contacts/purposeful availment]
MAKE SURE TO ANALYZE IF NEW VENUE HAS SMJ and PJ
* FQJ requires that P’s well-pleaded complaint contain a claim arising under federal question.
* DJ requires complete diversity among parties and amount in controversy exceeding $75,000. Complete diversity means each plaintiff has diverse citizenship from each defendant. Individual is citizen of domicile and corporation is citizen of states in which it’s incorporated and the one state in which it has principal place of business (nerve center)
Transferring Venue
D must show that (i) venue is improper or that venue should be transferred (ii) for the convenience of the parties and witnesses, in the interests of justice
Improper Venue:
* Transfer to venue where case should’ve been brought (has SMJ, PJ, and proper venue)
Proper Venue:
* Transfer to venue where action (i) might have been brought or to venue to which (ii) all parties have consented (and has SMJ, PJ, and proper venue)
* Only transfer if parties/witnesses would be GREATLY INCONVENIENCED by trial in original venue
MAKE SURE TO ANALYZE IF NEW VENUE HAS SMJ and PJ
* FQJ requires that P’s well-pleaded complaint contain a claim arising under federal question.
* DJ requires complete diversity among parties and amount in controversy exceeding $75,000. Complete diversity means each plaintiff has diverse citizenship from each defendant. Individual is citizen of domicile and corporation is citizen of states in which it’s incorporated and the one state in which it has principal place of business (nerve center)
Forum Non Conveniens
Even if venue is proper, forum non conveniens allows FEDERAL COURT to transfer civil case to another venue where it could’ve been brought for the convenience of parties/witnesses and interests of justice OR if transfer not possible, dismiss the civil case
Federal court evaluates public and private factors:
* Public Factors: availability of alternative forum, interest by original forum in providing forum for residents, which forum to burden with jury service
* Private Factors: convenience of parties and witnesses, location of evidence, where cause of action arose
