Subject Matter Jurisdiction Flashcards
Basic Idea
SMJ is about the court’s power over the case, and not the parties.
Federal courts have limited SMJ, so they can only hear certain kinds of cases.
As a general rule, state courts can hear any kind of case. They have general subject matter jx.
Cases that State Courts Cannot hear
Patent Infringement
Bankruptcy
Some Federal Securities
Antitrust Claims
Federal Courts have Limited SMJ
The two main types of cases that can be heard in fed court are:
- Federal Question Jx, and
- Diversity of Citizenship jx (which includes the so-called alienage jx)
A lack of SMJ cannot be waived (unlike PJ). If a case does not invoke federal SMJ, the fed court cannot hear the case. If it does, the judgment is void.
Diversity of Citizenship (and alienage) Cases
the case is either (a) between citizens of different U.S. states (diversity); or (b) between a citizen of a US state and a citizen of a foreign country (alienage); and the amount in controversy exceeds $75,000.
Complete Diversity Rule
Diversity of citizenship does not exist if any plaintiff is a citizen of the same state as any defendant.
When is Diversity determined?
When the case is filed
Citizenship of a natural person
A person can only have one domicile. That domicile is retained until it is changed.
How do you establish new domicile?
- Physical Presence in new place, and
- Intent to remain for the indefinite future.
Courts will look at all relevant factors to determine intent.
Citizenship of a corporation
A corporation is a citizen of any state or country in which it is incorporated and of the one state or country in which it has its PPB.
Where is a corporation’s PPB?
It is the state from which the corporation’s managers direct, coordinate, and control business activities.
This is also called the nerve center.
PPB = Nerve Center
Citizenship of an Unincorporated Association (Partnership, LLC, etc.)
Takes on the citizenships of all of its members.
Class Actions - Citizenship
the citizenship of the named representative(s) of the class is used.
Citizenship of Decedents, Minors and Incompetents
You use the citizenship of the decedent, minor, or incompetent
Amount in Controversy
Must exceed $75,000.
Calculating the amount in controversy
only the claim itself is considered.
So the claim itself must exceed $75k. Whatever the P claims in good faith is OK unless it is clear to a legal certainty that she cannot recover more than $75k.