Subject Matter Jurisdiction

Question 1

What are the requirements for diversity of citizenship (and alienage) cases?

Answer 1

1. The case is either:
   (a) Between citizens of different U.S. states; or
   (b) Between a citizen of the U.S. and citizen of a foreign county; and
2. The amount in controversy exceeds $75,000.

Question 2

Where is a person domiciled under SMJ?

Answer 2

A person is a citizen of a state where they are domiciled. A person’s domicile is determined by:

1. Physical presence in the domicile; and
2. Intent to make that place your home for the indefinite future.

Question 3

Where is a corporation domiciled under SMJ?

Answer 3

A corporation is domiciled in:

1. Any state where it is incorporated; and
2. The one state where it has its principle place of business

Question 4

Where is a corporation’s principal place of business?

Answer 4

Where the corporation’s managers direct, coordinate and control business activities (“nerve center”).

Question 5

Where is an unincorporated associated domiciled? (Parentships, LP, LLP, LLC)

Answer 5

An unincorporated association takes the citizenship of all of its members.

A limited partnership (LP) includes the citizenship of general and limited partners.

Question 6

Where is the citizenship of a class action?

Answer 6

The citizenship of the named class representative(s) is used.

Question 7

Can a P aggregate their claims against a D?

Answer 7

Yes, a single plaintiff can aggregate all of her claims against a single defendant, even if they are not related to one another.

Question 8

How can a court exercise Federal Question Jurisdiction?

Answer 8

A court can exercise FQ jurisdiction is the P’s claim “arises under” federal law.

Question 9

What is the “well pleaded complaint” rule?

Answer 9

This rules requires that the P’s claim itself must “arise under” federal law and states so in the complaint.

NOTE: Ask yourself if the P is enforcing a federal right?

Question 10

What is a “removal” of the case and who can do it?

Answer 10

A “removal” transfers the case from a state court to a federal court when the case could have been originally filed in a federal court.

A defendant may “remove” a case to federal court.

Question 11

What if the removal was not proper?

Answer 11

If the removal was improper, the federal court CAN “remand” the case to state court.

Question 12

What is the timing for removal?

Answer 12

The D must remove no later than 30 days after service of the FIRST paper that shows that the case is removeable.

Question 13

Who must join in the removal?

Answer 13

ALL Ds who have been served must join in removal.

Question 14

What are the 2 limitations of removal based on diversity?

Answer 14

1. The case should not be removed if any D is a citizen of the forum state (IN-STATE D RULE)
2. The case should not be removed more than one year after the case was filed in state court.

Question 15

What if the nondiverse party is dismissed from the lawsuit and 1 year limitation has not passed yet?

Answer 15

If the nondiverse party is dismissed from the claim, the diverse D may remove to federal court within 30 days of the service of the dismissal.

Question 16

What venue does the case go to once it has been removed?

Answer 16

The D removes the case to the federal district court that is “embracing” the state court where the case was filed.

NOTE: It does not matter if the venue would have been proper.

Question 17

When must the P move to remand a removed case?

Answer 17

If remanding is based on any other reason besides lack of SMJ, she must move to remand no later than 30 days after the filing of the notice of removal.

Question 18

What is supplemental jurisdiction?

Answer 18

It is a way for a federal court to hear a claim which they would not usually have jurisdiction over.

The claim must share a “common nucleus of operative fact” which means that the claim must arise out of the same occurrence or transaction as the claim in which the federal court already has jurisdiction over.

Question 19

What is the single limitation with supplemental jurisdiction?

Answer 19

In a diversity case, P cannot invoke supplemental jurisdiction.

Exception: Multiple P and the claim by 1 of them does not meet the amount in controversy.

Question 20

Even if we meet the requirements for supplemental jurisdiction, can a court still decline to hear the claim?

Answer 20

Yes, the federal court may choose to decline to hear the case if:

(1) The state law claim is complex or state law issues would predominate the case; or

(2) The claim which SMJ is based on is dismissed early on in the case.

Question 21

What is the Erie Doctrine?

Answer 21

A binding principle where a federal court in a diversity case will apply the federal procedural law of the FRCP, but must also apply state substantive law.

Question 22

What is Step 1 of the Erie Doctrine?

Answer 22

Is there a federal law on point that directly conflicts with state law? If so, apply federal law as long as its valid.

Question 23

What is Step 2 of the Erie Doctrine? When federal law is not “on point”.

Answer 23

If there is no federal law on point, the federal judge must apply state law if the issue is “substantive.”

Question 24

What are the “substantive” issues where the federal court must apply state law?

Answer 24

1. Conflicts or choice of law
2. Elements of a claim or defense
3. Statutes of limitation
4. Rules for tolling statutes of limitation; and
5. The standard for granting a new trial because the jury’s award was excessive or inadequate.

Question 25

What is Step 3 of the Erie Doctrine? Where there is no federal law “on point” and the issue is not of the 5 “substantive” issues?

Answer 25

The judge must determine whether the issue is “substantive” by examining the following factors:

1. Outcome determinative–if applying or ignoring state law affects the outcome of the case.
2. Balance of interest–who has a greater interest in having its rule applied?
3. Avoid forum shopping–If the federal court ignores state law, will more people flock to federal court?