Subject Matter Jurisdiction

Question 1

What is SMJ?

Answer 1

Courts power over the case.

Fed = limited SMJ

States = general matter jurisdiction (can hear any type of case).

*Note. Feds have exclusive SMJ over patent infringement, bankruptcy, some federal securities, and antitrust claims.

Question 2

Types of federal SMJ?

Answer 2

Federal Question

Diversity (including alienage)

Supplemental

Question 3

Can SMJ be waived?

Answer 3

No, unlike PJ. This isn’t about personal rights. It is about goverment structure. If a case does not invoke federal SMJ, the feds cannot hear the case. If it does, the judgment is void.

Question 4

Requirements for Diversity of Citizenship (and alienage)

Answer 4

(1) The case is either:

 (A) between citizens of different U.S. states 
 (diversity); or 

• Complete diversity: No P is a citizen of the same state as any D.
• A non-US citizen (even if has a green card and is permanent resident) is not a citizen of any state = A non-US citizen cannot be a citizen of a US state.(B) between a citizen of a U.S. state and a citizen of a foreign country (alienage); and
• Does not matter if non-citizen is P or D.

(2) The amount in controversy exceeds $75,000.

*Determined when the case is filed.

Question 5

What is the citizenship of a natural person for diversity?

Answer 5

The 1 US state where she is domiciled. Her permanent home where she intends to return. It is retained until changed.

Changed by (1) physical presence in a new domicile and (2) the intent to make that place your home for the indefinite future.

For intent, courts look to all relevant factors—like taking a job, buying a house, joining civic organizations, registering to vote, qualifying for
in-state tuition, etc.

Question 6

What is the citizenship of a corporation for diversity?

Answer 6

any state or country in which it is incorporated
and of the one state or country in which it has its principal place of business (nerve center, where officers control and direct the business)

Question 7

What is the citizenship of a Unincorporated Association (Partnership, Limited Liability Company (“LLC”), Etc.) for diversity?

Answer 7

Takes on the citizenship of ALL of its members (can be all 50). If limited partnership, then citizenship of both general and limited.

Question 8

What is the citizenship of Decedents, Minors, and Incompetents for diversity?

Answer 8

Decedents, minors, and incompetent persons must sue or be sued through a representative. The representative’s citizenship is irrelevant.
You use the citizenship of the decedent,minor, or incompetent.

Question 9

What is the citizenship of class actions for diversity?

Answer 9

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

Question 10

How do you calculate the amount in controversy in diversity cases?

Answer 10

 Based on: P’s good faith pleading UNLESS legal certainty that cannot recover more than 75k.
 Includes: Only the claim itself, litigation costs or interest are not included. (means prejudgment interest that results from delay of payment due to litigation, if bank sues for actual interest then ok).

Question 11

Can claims be aggregated for diversity amount?

Answer 11

Any single plaintiff may aggregate all of her claims against a single defendant.

Is there a limit to the number of claims a single
plaintiff may aggregate against a single defendant? No.

Must the claims be related to each other? No.

Question 12

How do joint claims work for diversity amount of controversy?

Answer 12

You use the total value of the claim. With joint claims, the number of parties is irrelevant.

You are not adding vs parties. It is just total value. Any joint tortfeasor can be liable for the total amount.

Question 13

For diversity, how are equitable remedies measured?

Answer 13

(1) One test looks at the plaintiff’s viewpoint. If granted, does the relief requested have a value of more than $75,000 to the plaintiff?

(2) The other test looks at the defendant’s viewpoint. If granted, will the relief requested by the plaintiff cost the defendant more than
$75,000?

Question 14

What exclusion from diversity jurisdiction apply? The “Excluded cases”

Answer 14

Even if the requirements for diversity or alienage jurisdiction are met, federal courts decline to hear actions for divorce, alimony,
child custody, and actions to probate an estate.

Question 15

What happens when parties manipulate their citizenship for diversity? What if they voluntarily change citizenship?

Answer 15

 Courts ignore attempts to change diversity by sham transaction merely for diversity.
 Genuine change of citizenship where change state after cause of okay but before suit commences ok.

Question 16

Federal Question SMJ

Answer 16

The plaintiff’s claim must “arise under” federal law (for example, the claim must arise under the federal constitution or federal legislation).

• Citizenship / $$ irrelevant.

Question 17

3 Step Test for Federal Question SMJ

Answer 17

 (1) Does the P’s claim arise under a federal law (Constitution, statute).
 Not enough that a possible defense or counterclaim could arise under federal law.
 (2) Does the federal question appear in the “well pleaded complaint?”
 (3) Is the P enforcing a federal right?
 It is not enough that some federal issue is raised by the complaint. The plaintiff’s claim itself must “arise under” federal law.
.

Question 18

Define Supplemental Jurisdiction

Answer 18

FQ and Diversity SMJ get CASES into federal court, supplemental jurisdiction get CLAIMS into a federal case, even if those claims cannot use FQ / Diversity.

Question 19

What are the elements of supplemental jurisdiction?

Answer 19

• FQ and Diversity SMJ get CASES into federal court, supplemental jurisdiction get CLAIMS into a federal case, even if those claims cannot use FQ / Diversity.
• Steps:
   Step 0: Is there a CASE that has FQ or diversity and is properly in federal court? (There must be something to supplement).
   Step 1: Does the additional claim have its own independent FQ / Diversity SMJ? (Step one is the claims gets in on its own power. Don’t skip, explain on bar).
   Step 2: No FQ / Diversity on its own. But, does the claim share a “common nucleus of operative fact” with the claim that is properly in federal court? (Always met if claim arises in same T/O –> CNOF is egg and T/O is egg yolk).
   Step 3: Claims by a P in a diversity (only) cases cannot get supplemental jurisdiction (even if CNOF).
   1 exception to this limitation: Multiple P, and the claim by one of them does not meet the amount in controversy requirement. (But must still meet test 1).

Question 20

Does a court have discretion not to hear supplemental claims even if it passes all the tests?

Answer 20

 The court has discretion to decline it. Usually three reasons:
 (1) State law claim is complex, or
 (2) State law issues predominate in the case, or
 *(3) the claim on which federal SMJ is based is dismissed early in the case (If case is 2 years in, judge will likely keep it).

Question 21

How can we have SMJ over a US citizen domiciled abroad?

Answer 21

Not FQ

United States citizen domiciled abroad is not a citizen of any state and is not an alien, and thus cannot be sued on the basis of diversity jurisdiction.