Subject Matter Jurisdiction

Question 1

What is SMJ?

Answer 1

Refers to power over case (not parties)

Question 2

How does SMJ different between federal and state courts?

Answer 2

Fed courts have limited SMJ, while state courts have general SMJ (can hear almost any kind of case)

Question 3

What cases are state courts NOT permitted to hear?

Answer 3

Patent infringement, bankruptcy, certain federal securities and antitrust claims

Question 4

What kinds of cases can a federal court hear?

Answer 4

Both 1) federal question cases and 2) diversity of citizenship/alienage cases

Question 5

Can SMJ be waived?

Answer 5

NO (jdgmt void if no SMJ)

Question 6

What are the requirements for diversity SMJ?

Answer 6

1) case between citizens of different US states (or between US citizen and foreign citizen); and 2) amount in controversy exceeds $75k

Question 7

What is the Complete Diversity rule?

Answer 7

Requirement that NO P be citizen of the same state as ANY D

Question 8

When is diversity determined?

Answer 8

At time case is filed

Question 9

How is state citizenship determined for a US citizen?

Answer 9

A person is a citizen of the state where they are domiciled

Question 10

How many domiciles can a person have?

Answer 10

Only one

Question 11

How can a domicile be changed?

Answer 11

By 1) physical presence in new domicile, and 2) intent to make that place your home indefinitely

Question 12

How is state citizenship determined for a corporation?

Answer 12

A corporation is a citizen of any state/country in which it’s incorporated and the one state/country where PPB located

Question 13

How is citizenship of an unincorporated association determined?

Answer 13

An unincorporated association is a citizen of all states where its members (partners, not employees, etc/)are citizens

Question 14

Can decedents, minors, or incompetents sue of be sued under diversity?

Answer 14

Yes, but must go through a representative (NOTE: only client’s citizenship, not rep’s, relevant)

Question 15

How is citizenship determined in class actions?

Answer 15

Use citizenship of named representative(s)

Question 16

What is the minimum amount that meets the requirement for a diversity case?

Answer 16

$75,000.01 (must EXCEED 75k)

Question 17

How is the amount in controversy calculated?

Answer 17

Only the claim itself counts (i.e., NOT litigation costs or interest on claim)

Question 18

Does the court have to verify the amount in controversy to ensure it’s accurate?

Answer 18

No so long as P acts in good faith UNLESS clear to a legal certainty that she can’t recover more than 75k

Question 19

What does aggregation of claims mean? Is it permitted?

Answer 19

Aggregation is allowed; it means adding 2+ claims together to meet the 75k requirement

Question 20

Are there any limits on what a single P can aggregate?

Answer 20

No; P can aggregate all of her claims against a single D, even if they are not related

Question 21

Can multiple plaintiffs aggregate claims to meet the 75k requirement?

Answer 21

No (UNLESS a joint claim is filed, in which case party number is irrelevant)

Question 22

How do we determine if the 75k requirement is met when equitable relief is sought?

Answer 22

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?

Question 23

Are any cases excluded from Diversity jurisdiction?

Answer 23

Yes; divorce, alimony, child custody, and actions to probate estate all excluded

Question 24

What is a sham transaction?

Answer 24

Where P assigns claims strictly to meet 75k requirement and court thus denies diversity SMJ

Question 25

What happens if P voluntarily changes citizenship?

Answer 25

P can create diversity by genuinely changing state citizenship after cause of action accrued BUT before suit commenced

Question 26

How is FQ SMJ achieved?

Answer 26

P’s claim must “arise under” federal law

Question 27

Are state citizenship or the amount in controversy accounted for?

Answer 27

No; both irrelevant

Question 28

What is the “well pleaded complaint” rule?

Answer 28

Claim itself must arise under federal law (i.e., not merely be connected to fed law somehow)

Question 29

How do we know if a claim arises under federal law?

Answer 29

Ask if P is enforcing a federal right (NOTE: unless explicitly based on fed law, tort/contract/property claims don’t count)

Question 30

What is removal?

Answer 30

Removal refers to transfer of case to federal court at request of D

Question 31

What is remand?

Answer 31

Occurs where removal was improper so federal court sends case back to state court

Question 32

Can any case be removed to federal court?

Answer 32

No; federal court must still have SMJ (i.e., either FQ or Diversity)

Question 33

Can a case still be removed if the state court lacks jurisdiction because the action is exclusively federal?

Answer 33

Yes; fed court may hear and decide case under its removal jurisdiction

Question 34

How is a case removed?

Answer 34

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

Question 35

Must D get state permission for removal?

Answer 35

No

Question 36

When can D remove?

Answer 36

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)

Question 37

Who must join removal?

Answer 37

All Ds who have been served with process (but can file separately)

Question 38

Can a D join removal even if the 30-day window has expired?

Answer 38

Yes if a later D still within window has filed for removal

Question 39

Can P ever remove?

Answer 39

Never

Question 40

What cases may be removed?

Answer 40

Those meeting FQ or Diversity SMJ

Question 41

Are there any limits on removal?

Answer 41

Yes, for Diversity SMJ

Question 42

What are the Diversity limits on removal?

Answer 42

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

Question 43

Is there any way a case with an in-state D can be removed during the course of litigation?

Answer 43

Yes; case may be removed if claim against in-state D voluntarily dismissed

Question 44

Where should the venue for removal be?

Answer 44

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)

Question 45

How can a P file for remand?

Answer 45

P moves to remand to state court of she thinks case shouldn’t have been removed

Question 46

When can P move for remand?

Answer 46

P must move to remand no later than 30 days after the notice of removal filing UNLESS P’s motion based on SMJ

Question 47

If P fails to move for remand within 30-day window, what happens?

Answer 47

P waives right to have case remanded (again, UNLESS SMJ involved)

Question 48

Can a case be remanded past the 30-day window if removal was improper?

Answer 48

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