Subject Matter Jurisdiction Flashcards
SMJ is about the court’s power over
the case
State courts can hear…
Almost all cases. Few federal exceptions:
1) patent infringment
2) bankruptcy
3) some federal securities
4) antitrust
Main types of cases federal courts can hear:
1) Federal question jursidiction
2) Diversity of citizenship/alienage jurisdiction
Waiver of SMJ
cannot be waived. If a federal court hears a case they don’t have SMJ over, the judgment is void.
Requirements for diversity of citizenship cases
1) the case EITHER between citizens of different US states (diversity) OR between a citizen of a US state and a citizen of a foreign country (alienage)
AND
2)exceeds 75k
Complete Diversity Rule
If ANY plaintiff is a citizen of the same state as ANY defendant, no diversity of citizenship.
Citizenship of a person
Where they are domiciled
How to establish a new domicile
1) physical presence in the new domicile
2) the intent to make that place your home for the indefinite future
Citizenship of a corporation
ANY state or country in which it is incorporated
AND
the one state or country which it has its principal place of business
Where is a corporation’s PPB?
Nerve center: state where corporation’s managers direct ,coordinate, and control business activities
Citizenship of an unincorporated association
Takes on the citizenships of ALL its members
Citizenship of decedents, minors, incompetents
Domiciled. Representatives citizenship is irrelevant.
Citizenship in class actions
Where the named representative(s) is domiciled
Calculating the amount in controversy
ONLY the claim itself is considered. (not litigation costs or interest).
Single plaintiff may aggregate ALL claims against a single defendant, even if claims are unrelated.
For Joint claims, use total value of the claim.
Calculating value of equitable relief
Two tests, if either is satisfied, most courts will say ok:
1) P’s POV. If granted, value >75k?
2) D’s POV. If granted, cost >75k?
Exclusions from diversity jurisdiction
Divorce, alimony, child custody, and actions to probate an estate
Collusive Creation of Diversity Rule (and exception)
Can’t create diversity via a sham transaction.
BUT P can create diversity by changing her state citizenship after the cause of action acrued but before suit commenced if genuine.
Federal Question Cases
P’s claim must “arise under” federal law.
Ask if the plaintiff is enforcing a federal right.!!!!!
Removal Basic Idea
P sues D in state court. D prefers to be sued in federal court. D may be able to “remove” to federal court.
How to remove a case
D files notice of removal in federal court, stating grounds for removal (diversity or FQ)
Attatches all documents served on her.
Promprlty service copy of notice of removal to adverse parties
Files copy of notice of removal in state court
Must remove no later than 30 days after service of the first paper that shows the case is removable (usually service of process)
Removal with multiple defendants
ALL served defendants must join in removal.
If served at different times, the latest served defendant can file, and earlier served defendant can join even if 30 days passed.
Can plaintiff’s remove?
No.
What cases may be removed
Step 1: Must have FQ or Diversity/alienage
TWO Limitations for removal based on diversity:
1) should not be removed if ANY defendant is a citizen of the forum state
2) should not be removed more than one year after the case was filed in state court
—–only relevant when in state defendant is voluntarily dismissed from the case after 30 days.
Removal Venue
D removes to the federal court “embracing” the state court where the case was filed.
(San diego state court -> southern district federal court)
Remand to state court (and time limits)
If P thinks case should not have been removed, can move to remand to state court.
If for reason other than lack of SMJ, must be no later than 30 days of filing of notice of removal. If SMJ, no time limit.
