Subject Matter Jurisdiction Flashcards
What is Subject Matter Jurisdiction?
Subject Matter Jurisdiction is determining if a federal court is able to hear the case.
What are the three ways a federal court can hear a case?
- Federal Question Jurisdiction (28 U.S.C. § 1331)
- Diversity Jurisdiction (28 U.S.C. § 1332)
- Supplemental Jurisdiction (28 U.S.C. § 1367)
What does 28 U.S.C. § 1331 say about Federal Question?
“The district courts shall have original jurisdiction of all civil actions arising under the Constitutions, laws, or treaties of the United States.
What is the Well-Pleaded Complaint Rule?
“A case may be filed in federal court if it arises out of litigation pertaining to federal positive law.” (Louisville & Nashville Railroad v. Mottley).
What are examples of when a federal court may hear a case under 28 U.S.C. § 1331?
- “substantial” federal issue, “serious federal interest”, Congressional intent and “disruptive portent” (Grable & Sons Metal Products v. Darue Engineering & Mfg).
- Federal courts can hear a case when there is a strong federal interest in the case (e.g., ability to levy taxes) (Smith v. KC Title & Trust Co.).
- The case is in one of the few areas where federal courts completely preempt state authority and thus are the only ones able to hear the case (e.g., Admiralty, Bankruptcy, etc.) (Beneficial National Bank v. Anderson).
What does 28 U.S.C. § 1332 say about Diversity Jurisdiction?
28 U.S.C. § 1332 – Diversity of citizenship; amount in controversy; costs
(a) The district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs, and is between—
(1) citizens of different States; – citizenship of natural persons is determined by where they are domiciled
(2) citizens of a State and citizens or subjects of a foreign state, except that 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.
(3) citizens of different States and in which citizens or subjects of a foreign state are additional parties; and
(4) a foreign state, defined in section 1603(a) of this title, as plaintiff and citizens of a State or of different states.
(b) Not included.
(c) For the purposes of this section and section 1441 of this title—
(1) a corporation shall be deemed to be a citizen of every State and foreign state by which it has been incorporated and of the State or foreign state where it has its principal place of business. . . .
No further paragraphs of this 28 U.S.C. § 1332 are included.
How is citizenship determined for Natural Persons?
Citizenship is determined based on domicile which is determined by a balancing test of factors such as residence, taxes, driver’s license, business ownership, etc. (Lundquist v. Precision Valley Aviation, Inc.)
How is citizenship determined for Corporations?
Under 28 U.S.C. § 1332(c)(1): a corporation is a citizen of every state and foreign state by which it has been incorporated and where it has its principal place of business.
–Principal place of business is determined by the Ninth Circuit as where the amount of activity is “significantly larger” or “substantially predominates.” (Hertz Corp v. Friend).
—-If there is no such state, then the corporation’s “nerve center” where the majority of its executive and administrative functions is used to determine principal place of business (Hertz Corp v. Friend).
How is citizenship determined for an LLP/LLC?
An LLP/LLC is a citizen of every state where a member is a citizen (Zambelli Fireworks Mfg. Co., Inc v. Wood).
How is citizenship determined for Partnerships?
A partnership is a citizen of every state where a partner is a citizen?
What are the two sources of positive law for Supplemental Jurisdiction?
- U.S. Constitution, Art. III, Sec. 2 (“cases” and “controversies”)
- 28 U.S.C. § 1367
What does 28 U.S.C. § 1367 state?
28 U.S.C. § 1367 – Supplemental jurisdiction
(a) Except as provided in subsections (b) and (c) or as expressly provided otherwise by Federal statute, in any civil action of which the district courts have original jurisdiction, the district courts shall have supplemental jurisdiction over all other claims that are so related to claims in the action within such original jurisdiction that they form part of the same case or controversy under Article III of the United States Constitution. Such supplemental jurisdiction shall include claims that involve the joinder or intervention of additional parties.
–COMMENT: “claims” “form part of the same case or controversy”
—-“common nucleus of operative fact” (United Mine Workers of America v. Gibbs)
(b) In any civil action of which the district courts have original jurisdiction founded solely on section 1332 of this title, the district courts shall not have supplemental jurisdiction under subsection (a) over claims by plaintiffs against persons made parties under Rule 14, 19, 20, or 24 of the Federal Rules of Civil Procedure, or over claims by persons proposed to be joined as plaintiffs under Rule 19 of such rules, or seeking to intervene as plaintiffs under Rule 24 of such rules, when exercising supplemental jurisdiction over such claims would be inconsistent with the jurisdictional requirements of section 1332.
(c) The district courts may decline to exercise supplemental jurisdiction over a claim under subsection (a) if—
(1) the claim raises a novel or complex issue of State law,
(2) the claim substantially predominates over the claim or claims over which the district court has original jurisdiction,
(3) the district court has dismissed all claims over which it has original jurisdiction, or
(4) in exceptional circumstances, there are other compelling reasons for declining jurisdiction.
(d) The period of limitations for any claim asserted under subsection (a), and for any other claim in the same action that is voluntarily dismissed at the same time as or after the dismissal of the claim under subsection (a), shall be tolled while the claim is pending and for a period of 30 days after it is dismissed unless State law provides for a longer tolling period.
(e) As used in this section, the term “State” includes the District of Columbia, the Commonwealth of Puerto Rico, and any territory or possession of the United States.
