Subject Matter Jurisdiction Flashcards

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1
Q

Basic Idea

A

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.

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2
Q

Cases that State Courts Cannot hear

A

Patent Infringement
Bankruptcy
Some Federal Securities
Antitrust Claims

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3
Q

Federal Courts have Limited SMJ

A

The two main types of cases that can be heard in fed court are:

  1. Federal Question Jx, and
  2. 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.

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4
Q

Diversity of Citizenship (and alienage) Cases

A

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.

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5
Q

Complete Diversity Rule

A

Diversity of citizenship does not exist if any plaintiff is a citizen of the same state as any defendant.

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6
Q

When is Diversity determined?

A

When the case is filed

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7
Q

Citizenship of a natural person

A

A person can only have one domicile. That domicile is retained until it is changed.

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8
Q

How do you establish new domicile?

A
  1. Physical Presence in new place, and
  2. Intent to remain for the indefinite future.

Courts will look at all relevant factors to determine intent.

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9
Q

Citizenship of a corporation

A

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.

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10
Q

Where is a corporation’s PPB?

A

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

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10
Q

Citizenship of an Unincorporated Association (Partnership, LLC, etc.)

A

Takes on the citizenships of all of its members.

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11
Q

Class Actions - Citizenship

A

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

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12
Q

Citizenship of Decedents, Minors and Incompetents

A

You use the citizenship of the decedent, minor, or incompetent

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13
Q

Amount in Controversy

A

Must exceed $75,000.

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14
Q

Calculating the amount in controversy

A

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.

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15
Q

Aggregation of Claims

A

Adding two or more claims to meet requirement.

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

16
Q

Joint Claims

A

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

17
Q

Equitable Relief - How do we satisfy the amount in controversy?

A

Equitable relief includes the issuance of an injunction, specific performance, rescission of a k, etc.

Amount in controversy is satisfied if either test is met:

  1. Plaintiff’s viewpoint - does the relief requested have a value of more than $75k to the P if granted?

OR

  1. Defendant’s Viewpoint - will the relief requested by the P cost the D more than $75k?
18
Q

Exclusions from Diversity Jx

A

Even if the requirements for diversity or alienage jx are met, federal courts decline to hear actions for

divorce
alimony
child custody
actions to probate an estate

19
Q

Collusive Creations of Diversity

A

If a party attempts to create diversity by a sham transaction, such as assigning a claim for collection purposes merely to create diversity SMJ, the courts ignore the transaction and declare that diversity does nto exist.

20
Q

Voluntary Changes of Citizenship

A

A P can also create diversity by changing her state citizenship after the cause of action accrued but before suit is commenced.

If it is a genuine change of citizenship, diversity is OK.

21
Q

Federal Question Cases

A

For there to be FQ jx, the P’s claim must “arise under” federal law.

For example, the claim must arise under the federal constitution or federal legislation.

22
Q

FQ - Well Pleaded Complaint Rule

A

For FQ cases the pleader must follow the well pleaded complaint rule. It is not enough that some federal issue is raised by the complaint, the P’s claim itself must “arise under” federal law.

23
Q

FQ - is the P enforcing a federal right?

A

if yes - case can go to fed court under FQ jx

if no - the case cannot go to federal court under FQ jx.

24
Q

Removal

A

The D might be able to remove the case to federal court.

Removal transfers the case from a state trial court to a federal trial court.

If removal was improper, the federal court can remand the case to state court.

25
Q

Removal - Federal SMJ Necessary

A

Generally, an action originally filed in a state court may be removed by a D to federal court when the case could have been filed in a federal court - that is FQ or Diversity jx exists.

26
Q

Removal - State Court need not have jx

A

Even when the state court has no jx because the action is exclusively federal, the federal court may hear and decide the case under its removal jx.

27
Q

How a Case is Removed

A

The D files “notice of removal” in federal court, stating grounds for removal, which means SMJ (FQ or Diversity).

Permission of the state or federal court is not required. The D attaches all documents that were served on her in the state action.

The D then promptly serves a copy of the notice of removal on adverse parties and files a copy of the notice of removal in state court.

28
Q

Timing of Removal

A

The D must remove no later than 30 days after service (not filing) of the first paper that shows the case is removable.

usually that means no later than 30 days after service of process.

29
Q

Who must join the removal?

A

All D’s who have been served with process must join in removal.

If D’s are served at different times, and a later D initiates timely removal, the earlier served D may join in the removal even though their 30-day period for initiating removal may have expired.

30
Q

Who can remove?

A

Plaintiff’s cannot remove, only Defendants.

Plaintiffs can never never ever, remove.

31
Q

What cases may be removed?

A

The D can remove a case that meets the requirements for diversity of citizenship (including alienage) or FQ jurisdiction.

Two limitations based on diversity of citizenship:

  1. the case should not be removed if any D is a citizen of the forum state (in-state defendant rule); and
  2. The case should not be removed more than one year after the case was filed in state court.
32
Q

One-year Limitation

A

A case with an instate D can later become removable. The case becomes removable when the claim against the in-state D (or the non-diverse defendant) is voluntarily dismissed from the case.

33
Q

Removal Venue

A

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

it does not matter if this venue would have been proper under the venue statutes.

34
Q

Remand to State Court

A

if the P thinks the case should not have been removed, she moves to remand to state court.

If the motion to remand is based on a reason other than lack of SMJ (I.e., one-year limitation on the removal of a diversity case), she must remand no later than 30 days after the filing of hte notice of removal.

If the P fails to do so, she waives the right to have the case remanded to state court and the case will stay in federal court.

On the other hand, if removal was improper because the fed court lacked SMJ, there is no time limit on ordering remand.

Remember, an objection to SMJ is never waived, and a court without SMJ is powerless to act on the case.