Subject Matter Jurisdiction Flashcards
What is SMJ?
Refers to power over case (not parties)
How does SMJ different between federal and state courts?
Fed courts have limited SMJ, while state courts have general SMJ (can hear almost any kind of case)
What cases are state courts NOT permitted to hear?
Patent infringement, bankruptcy, certain federal securities and antitrust claims
What kinds of cases can a federal court hear?
Both 1) federal question cases and 2) diversity of citizenship/alienage cases
Can SMJ be waived?
NO (jdgmt void if no SMJ)
What are the requirements for diversity SMJ?
1) case between citizens of different US states (or between US citizen and foreign citizen); and 2) amount in controversy exceeds $75k
What is the Complete Diversity rule?
Requirement that NO P be citizen of the same state as ANY D
When is diversity determined?
At time case is filed
How is state citizenship determined for a US citizen?
A person is a citizen of the state where they are domiciled
How many domiciles can a person have?
Only one
How can a domicile be changed?
By 1) physical presence in new domicile, and 2) intent to make that place your home indefinitely
How is state citizenship determined for a corporation?
A corporation is a citizen of any state/country in which it’s incorporated and the one state/country where PPB located
How is citizenship of an unincorporated association determined?
An unincorporated association is a citizen of all states where its members (partners, not employees, etc/)are citizens
Can decedents, minors, or incompetents sue of be sued under diversity?
Yes, but must go through a representative (NOTE: only client’s citizenship, not rep’s, relevant)
How is citizenship determined in class actions?
Use citizenship of named representative(s)
What is the minimum amount that meets the requirement for a diversity case?
$75,000.01 (must EXCEED 75k)
How is the amount in controversy calculated?
Only the claim itself counts (i.e., NOT litigation costs or interest on claim)
Does the court have to verify the amount in controversy to ensure it’s accurate?
No so long as P acts in good faith UNLESS clear to a legal certainty that she can’t recover more than 75k
What does aggregation of claims mean? Is it permitted?
Aggregation is allowed; it means adding 2+ claims together to meet the 75k requirement
Are there any limits on what a single P can aggregate?
No; P can aggregate all of her claims against a single D, even if they are not related
Can multiple plaintiffs aggregate claims to meet the 75k requirement?
No (UNLESS a joint claim is filed, in which case party number is irrelevant)
How do we determine if the 75k requirement is met when equitable relief is sought?
2 tests (if either met, usually OK): 1) if granted, does relief requested exceed 75k for P; and 2) if granted, will D owe more than 75k?
Are any cases excluded from Diversity jurisdiction?
Yes; divorce, alimony, child custody, and actions to probate estate all excluded
What is a sham transaction?
Where P assigns claims strictly to meet 75k requirement and court thus denies diversity SMJ
What happens if P voluntarily changes citizenship?
P can create diversity by genuinely changing state citizenship after cause of action accrued BUT before suit commenced
How is FQ SMJ achieved?
P’s claim must “arise under” federal law
Are state citizenship or the amount in controversy accounted for?
No; both irrelevant
What is the “well pleaded complaint” rule?
Claim itself must arise under federal law (i.e., not merely be connected to fed law somehow)
How do we know if a claim arises under federal law?
Ask if P is enforcing a federal right (NOTE: unless explicitly based on fed law, tort/contract/property claims don’t count)
What is removal?
Removal refers to transfer of case to federal court at request of D
What is remand?
Occurs where removal was improper so federal court sends case back to state court
Can any case be removed to federal court?
No; federal court must still have SMJ (i.e., either FQ or Diversity)
Can a case still be removed if the state court lacks jurisdiction because the action is exclusively federal?
Yes; fed court may hear and decide case under its removal jurisdiction
How is a case removed?
Steps: 1) D files notice of removal in fed court stating grounds (i.e., SMJ) and attaching all documents served in state action; 2) D promptly serves copy of notice on adverse parties; 3) D files copy of notice in state court
Must D get state permission for removal?
No
When can D remove?
D must remove no later than 30 days after service, not filing, of first paper showing case removable (i.e., usually 30 days after service)
Who must join removal?
All Ds who have been served with process (but can file separately)
Can a D join removal even if the 30-day window has expired?
Yes if a later D still within window has filed for removal
Can P ever remove?
Never
What cases may be removed?
Those meeting FQ or Diversity SMJ
Are there any limits on removal?
Yes, for Diversity SMJ
What are the Diversity limits on removal?
1) Case shouldn’t be removed if any D is a citizen of the forum state (“in-state D rule”; and 2) Case shouldn’t be removed more than 1 year after case filed in state court
Is there any way a case with an in-state D can be removed during the course of litigation?
Yes; case may be removed if claim against in-state D voluntarily dismissed
Where should the venue for removal be?
D removes to the fed district court “embracing” the state court where case filed (doesn’t matter if venue would’ve been proper under venue statutes)
How can a P file for remand?
P moves to remand to state court of she thinks case shouldn’t have been removed
When can P move for remand?
P must move to remand no later than 30 days after the notice of removal filing UNLESS P’s motion based on SMJ
If P fails to move for remand within 30-day window, what happens?
P waives right to have case remanded (again, UNLESS SMJ involved)
Can a case be remanded past the 30-day window if removal was improper?
Yes; if case lacked proper SMJ, remand can be ordered at any time because SMJ is never waived and court can’t act without SMJ
