Subject Matter Jurisdiction

Question 1

Definition of SMJ

Answer 1

Court’s competence to hear a case within a general class and subject.

Question 2

Five types of SMJ

Answer 2

1. Federal question
2. Diversity
3. Supplemental
4. Removal
5. Legislative

Question 3

When can SMJ be contested?

Answer 3

At any time during the proceedings, including appeal. It cannot be waived or agreed to by the parties.

Question 4

What basis can a court use for abstaining when SMJ exists?

Answer 4

1.State law issue would resolve case.
2. Complex state regulatory scheme or matter of great state importance

Question 5

What is Federal Question SMJ?

Answer 5

Action arises under the Constitution or laws of the United States.
It must be plain of the face of the Complaint. Cannot consider defenses, counterclaims, etc.

Question 6

What is diversity SMJ?

Answer 6

1. Parties are citizens of different states
2. Amount in controversy over $75000
3. Diversity must be complete–no plaintiff can be from same state as any defendant.
4. Trial court can realign parties according to their “ultimate interests” to determine diversity.
5. Diversity is determined at the time the case is filed.

Question 7

How is citizenship of a person determined for Diversity Jurisdiction?

Answer 7

The person’s domicile–present in the state and intends to reside for indefinite period.
A person can have only one domicile.
Domicile is determined at the time the action is filed.

Question 8

How is diversity jurisdiction handled for non-citizens?

Answer 8

All non-citizens are considered to be from one “state” (outside the US)

Question 9

How is citizenship of a corporation determined for diversity jurisdiction?

Answer 9

1. State of incorporation AND
2. Any state with corporation’s principle place of business (nerve center)

Question 10

How is citizenship of partnerships determined for diversity jurisdiction?

Answer 10

Any state where any member or partner is a citizen.

Question 11

How is the amount in controversy determined for diversity Jurisdiction?

Answer 11

1. Amount in controversy exclusive of costs, interest, etc.
2. Based upon good faith assertion in the complaint.
3. Amount is determined at time of filing.
4. There is no aggregation for multiple plaintiffs unless it involved common interest or right.
5. There is no aggregation of claims against multiple defendants unless joint and several.

Question 12

Do counterclaims have to meet the amount in controversy requirement for diversity jurisdction?

Answer 12

Compulsory (same transaction or occurence)–No.
Permissive- Yes.

Question 13

When can a case be removed based on diversity because of a counterclaim?

Answer 13

Permissive counterclaims-Never.
Compulsory counterclaims.-Courts are split, usually not.

Question 14

How is diversity determined when a claim is assigned?

Answer 14

When the assignment is legitimate, the assignee’s citizenship is used.

Question 15

When can a court exercise supplemental jurisdiction over additonal claims where SMJ is lacking?

Answer 15

When the additional claims arise from “a common nucleus of operative fact.”

Question 16

What is “pendant party” jurisdiction?

Answer 16

Supplemental jurisdiction that involves claims against additional parties that also arise from the “common nucleus of operative fact.”

Question 17

In a diversity case, when can cross claims be asserted?

Answer 17

1. When they meet the requirements for diversity OR
2. Under supplemental jurisdiction when cross claim arises from “common nulceus of operative fact.”

Question 18

In a diversity case, when can the court exercise supplemental jurisdiction over a Rule 20 permissive joinder claim?

Answer 18

When the defendant joined still results in complete diversity and there is a “common nucleus of operative fact” between the original claims and the new claim. The amount in controversy requirement does not have to be met for the new claim.

Question 19

In a diversity case, when does the court have jurisdiction over counterclaims?

Answer 19

1. Compulsory counterclaims (same transaction or occurence)–always
2. Permissive counterclaims–only when the counterclaim meets all diversity requirements.

Question 20

In a diversity case, when does the court have jurisdiction over cross-claims?

Answer 20

Whenever the cross claim arises from the same transaction or occurence?

Question 21

What is removal jurisdiction?

Answer 21

Removal jurisdiction is a right of the defendant only to move a case from state court to federal court when the federal court has subject matter jurisdiction (federal question or diversity). No defendant can be a citizen of the state in which the case is filed.

Question 22

How is the right of removal determined?

Answer 22

Based upon the pleadings on file at the time the notice of removal is filed.

Question 23

How is a case removed to federal court?

Answer 23

Filing a notice of removal in federal court within 30 days after receipt or service of the initial pleading. Filing a copy of the notice in state court.
All defendants must join in or consent to the removal.

Question 24

Can a case be removed to federal court based upon an amended pleading?

Answer 24

Yes.

Question 25

What courts and cases can be brought under legislative jurisdiction?

Answer 25

1. US Claims Court–claims against the US and its officers
2. Court of Appeals for the Federal Circuit
3. Court of International Trade
4. Tax Court
5. Bankruptcy Court