Subject Matter Jurisdiction

Question 1

What is Subject Matter Jurisdciton (SMJ)?

Answer 1

A courts power to hear cases involving a certain subject. CAN NEVER BE WAIVED.
States can hear almost any type of case. Limited jurisdiction of federal courts to hear and render judgments on cases of a certain type that they are affirmatively authorized to hear.

Question 2

What Constitutional provision establishes the limits of SMJ of the federal courts?

Answer 2

Article III, Section 2 - judicial power of federal courts extends to 9 categories of cases.

Question 3

What is Diversity Jurisdiction (DJ)?

Answer 3

Federal courts power over lawsuits between (1) citizens from different states and (2) cases involving U.S. citizens and foreigners through the Federal Diversity Statute 1332(a).

Question 4

What cases can federal courts hear under 1332(a)?

Answer 4

(A) where the matter in controversy EXCEEDS $75k, AND (B) where complete diversity is met.

Question 5

How can complete diversity be met?

Answer 5

Suits between (1) citizens of different states, (2) citizens of a state and foreigners, (3) citizens of different states where citizens or foreigners are additional parties, and (4) a foreign state as the plaintiff against citizens of a state or different states.

Question 6

What case should be cited for Diversity of Citizenship Requirement?

Answer 6

Mas v. Perry - To change your domicilie you can (a) physically move AND (b) intend to remain in that place. Domiciles are determined at the time of filing a lawsuit!

Question 7

What is the time of filing rule?

Answer 7

A person’s domicile is determined at the time the plaintiff files the lawsuit. This domicile will be set in stone for the rest of the lawsuit.

Question 8

What is a Long Arm Statue? And what is its purpose?

Answer 8

Long Arm Statute = a state law that reaches beyond a state’s border. If someone is not physically in the state, the statute lays out how they can still be served with process by the state. Long arm statutes illustrate how state courts identify a range of circumstances in which the state can exercise PJ over defendants.

Question 9

What two categories of cases does Article III Section 2 address when giving federal courts SMJ?

Answer 9

(1) federal questions = issues that are important to federal government.
(2) issues of fairness between states - federal court in these cases could reach a neutral judgment to prevent bias against one state resident or another.

Question 10

What is the Nerve Center Test? And what case established this rule?

Answer 10

Hertz v. Friend established this test. Nerve Center = a place where the corporation’s high-level officers, direct, control and run the corporation’s actives. Think location of CEO, COO, CFO etc.

Question 11

How do you determine citizenship for Unincorporated Associations?

Answer 11

(ex. Partnerships, LLC, Unions etc.) the citizenship of each and every member must be tracked and considered.

Question 12

How do you determine citizenship for Legal Representatives (someone filing a lawsuit on behalf of someone else)

Answer 12

Per rule 1332(c)(2), Legal representative acquires the citizenship of the person they are representing.
o Whoever’s interest is at stake is what citizenship is used. So do NOT use the citizenship of the representative.

Question 13

How do you determine citizenship for Class Actions?

Answer 13

use citizenship of all named class members.

Question 14

What does Rule 1359 prohibit?

Answer 14

Collusive Joinder = when you add a party to prevent DJ. Any efforts to manipulate the citizenship of the parties to create or destroy DJ are prohibited by 1359.

Question 15

What are 2 categories of cases you can NEVER litigate in federal court?

Answer 15

(1) Wills and probate matters, and (2) family law cases like divorces or custody

Question 16

What are the Aggregation rules for the Amount In Controversy?

Answer 16

A plaintiff can aggregate unrelated/any claims where there is a a single plaintiff v. a single defendant Multiple plaintiffs can NOT aggregate their claims. Class actions can aggregate their claims as long as each individual class member meets the amount in controversy themselves.

Question 17

What is the rule from Del Vecchio?

Answer 17

A plaintiff can claim damages of $75k or above UNLESS “beyond a legal certainty that a plaintiff would under no circumstances be entitled to recover that amount.” A judge will determine if the plaintiff claims too much in damages to meet the amount in controversy requirement.

Question 18

How do you determine citizenship for Corporations?

Answer 18

Per Rule 1332(c)(1), corporations are citizens of (1) where they are incorporated, AND (2) where it has its principle place of business (look at the “Nerve Center”). A corporation can have multiple citizenships.

Question 19

What is the rule from Mas v. Perry?

Answer 19

Determining Domicile for Individuals = Physical presence in state + intent to remain in the state indefinitely.
o Factors a court considers: driver’s license, voting registration etc.
o Note: Individuals can only have 1 domicile, even if you have multiple residences. Minors take the domicile of their parents.

Question 20

What is Alienage jurisdiction?

Answer 20

Per 1332, DJ is granted over actions involving foreigners when the controversy is between:
o Citizens of a State and citizens or subjects of a foreign state OR
o Citizens of different States and in which citizens or subjects of a foreign state are additional parties.
o Notes: A U.S. Citizen MUST be a party to the case. If a foreigner is the plaintiff alone, DJ is NOT allowed. Permanent residents obtain the citizen of their state of residence EXCEPT when they are aligned against another foreigner or a U.S. Citizen domiciled in a different state. Stateless Persons & Entities do NOT qualify for diversity jurisdiction. Indian tribes fall into the “stateless” category. If you see a stateless person DJ will never be permitted.

Question 21

What is the Diversity of Citizenship Requirement?

Answer 21

The plaintiff and defendant must have different citizenships, meaning they must be from different states. Once diversity of citizenship is met, the parties have “complete diversity”.

Question 22

What is the main case to site for DJ?

Answer 22

Mas v. Perry

Question 23

What is FQJ?

Answer 23

Federal Question Jurisdiction – the authority of federal courts to hear cases involving federal constitutional, statutory, or treaty law.

Question 24

What is rule 1331?

Answer 24

The district courts shall have original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the U.S. Gives courts FQJ.

Question 25

What is the Well Pleaded Complaint Rule? And what case does it come from?

Answer 25

Federal cause of action/question has to come from the plaintiff’s claim which makes the plaintiff the master of the complaint. It CAN’T be an anticipated defense by the defendant. You ONLY get to federal court based on the plaintiff’s complaint. This comes from Louisville & Nashville Railroad Co. v. Mottley case.

Question 26

What is the rule from the Grable Case?

Answer 26

When state law claims necessarily raise a stated federal issue, actually disputed and substantial, a federal forum may exert FQJ to hear the case, IF the case will not disturb any congressionally approved balance of federal and state judicial responsibilities.

Question 27

What is an Artful Pleading?

Answer 27

Occurs when a plaintiff asserts state-law claims in an attempt to anticipate and refute federal law defenses as a means of making the claim appear to raise a federal question. This is NOT allowed.

Question 28

What is Supplemental Jurisdiction? And what is its purpose?

Answer 28

Supplemental Jurisdiction = the circumstances under which federal courts may exercise jurisdiction over supplemental claims that would not otherwise qualify for federal SMJ were they asserted in isolation. Meaning there are a MINIMUM of 2 claims being made, one a state law claim and the other a federal claim. We want to give courts power over cases with both claims for efficiency and legitimacy of the court.

Question 29

What is Rule 1367(a)?

Answer 29

If you have DJ or FQJ for a claim, then the district court shall have supplemental jurisdiction over all other claims that are so related to the action within such original jurisdiction that they form part of the same case or controversy (common nucleus of fact). For SUPPLEMENTAL JURISDICTION.

Question 30

What is Rule 1367(b)?

Answer 30

Takes away supplemental jurisdiction over claims by plaintiffs against persons made parties under Rules 14, 19, 20 or 24, or over claims by persons joined as plaintiffs under Rule 19 or 24.

Question 31

What is the rule from United Mine Workers v. Gibbs?

Answer 31

The state (non-qualifying) and federal claims (qualifying) must derive from a common nucleus of operative fact to qualify for federal jurisdiction and the federal claim must be substantial

Question 32

What is the rule from Exxon Mobile?

Answer 32

Incomplete diversity destroys original jurisdiction with respect to all claims, so there is nothing to which supplemental jurisdiction can adhere. Plaintiffs joined under Rules 20 and 23 claims can make the case for supplemental jurisdiction.

Question 33

What are the 2 cases to cite for supplemental jurisdiction?

Answer 33

Gibbs and Exxon Mobile.

Question 34

What is the rule from Osborn v. Bank of the U.S.?

Answer 34

FQJ is allowed whenever a federal question forms an “ingredient” of the claim.

Question 35

What is Removal Jurisdiction?

Answer 35

Removal Jurisdiction = ability to move a case from state court to federal court.

Question 36

What is the rule to cite for Removal Jurisdiction?

Answer 36

1441

Question 37

What is Rule 1441(a)?

Answer 37

Any civil action brought in a state court of which the district courts of the US have original jurisdiction, may be removed by the defendant or the defendants, to the district court of the US that’s applicable. Removal must be based on claims asserted by the plaintiff (not counterclaims). The assessment on ability to remove is made AT THE TIME OF REMOVAL (not the time when the case was originally filed in state court).

Question 38

What is the Forum State Defendant Rule?

Answer 38

Per 1441(b), a civil action otherwise removable solely on the basis of the jurisdiction under Section 1332(a) may NOT be removed if any of the parties in interest properly joined and served as defendant is a citizen of the state in which such action is bought
If any citizen is a defendant of the forum state hearing the case, then you can’t remove the case from that forum state!!!

Question 39

What is Rule 1441(c)?

Answer 39

When non-qualifying claims are removed to federal court along with 1331 claims, then the federal court should remand the non-qualifying claims to state court. Permits removal and then severance and remand only in the presence of removable federal question claims.
Note: Doesn’t work with 1332, if one claim is not removable, then the whole action is stuck.

Question 40

What is the rule from the Hays v. Law Firm case?

Answer 40

You can’t plead a federal defense and remove a case nor a federal counterclaim and remove the case.