Subject Matter Jurisdiction

Question 1

What is the general idea of subject matter jurisdiction?

Answer 1

A court’s competence to hear and determine cases of general class and subject to which proceedings in question belong.

Question 2

What does a federal court have subject matter jurisdiction over?

Answer 2

Federal district courts have original subject-matter jurisdiction over disputes that fall within either:
-> federal-question jurisdiction – when the claim arises under the U.S. Constitution, a federal treaty, or a federal law (not seen here) or
-> diversity jurisdiction – when the opposing parties are citizens of different states and the amount in controversy exceeds $75,000.

Question 3

What do federal district courts have original jurisdiction over?

Answer 3

All civil actions arising under the Constitution, laws or treaties of the U.S.

Question 4

What do state and federal courts have concurrent jurisdiction over and when do federal courts have exclusive jurisdiction?

Answer 4

Federal questions claims, except when Congress expressly provides that JX of the federal courts is exclusive.

Question 5

What do state courts have exclusive jurisdiction over, meaning a federal court can’t exercise diversity jurisdiction over?

Answer 5

-> probate matters (eg, authenticating wills, administering estates) or
-> domestic relations (eg, issuing divorce, alimony, or child-custody decrees)

Question 6

What is the abstention doctrine?

Answer 6

A federal court with subject-matter jurisdiction may abstain from hearing a case or stay the matter pending adjudication of the similar state court action when an abstention doctrine applies in the following ways
-> Pullman - Resolution of unsettled state law in state court would moot federal constitutional issue
-> Burford - Injunction or declaratory judgment would interfere with complex state regulatory scheme that serves important state policy & provides timely & adequate judicial review
-> Colorado River - Pending state proceeding involving substantially same parties & issues presents exceptional circumstances that justify conserving judicial resources
OR
-> Younger - Injunction or declaratory judgment would interfere with pending state proceeding that involves important state interest & provides adequate opportunity to litigate federal claims

Question 7

What are the three types of scope regarding the existence of a federal question?

Answer 7

Express
-> FQ exists if cause of action (c/a) in question is expressly created by federal law and the federal law provides the underlying right.

Implied
-> FQ likely to be found if right is created by federal law, AND a c/a can be fairly implied and was intended by Congress

Not express nor implied
-> a state-law claim with a federal issue that is (1) necessarily raised, (2) actually disputed, (3) substantial, and (4) capable of resolution in federal court without disrupting the federal-state balance approved by Congress

Question 8

What is a well-pleaded complaint regarding a FQ?

Answer 8

FQ exists only when federal issue is presented on the face of the complaint (P’s c/a - not defenses, answers or counterclaims)

Focus on Plaintiff!

Question 9

Is there an amount-in-controversy or diversity requirement to establish a federal question?

Answer 9

No.

Question 10

How does diversity jurisdiction and which courts have JX over such a situation?

Answer 10

Federal courts have JX when parties are citizens of different states or citizens of a state and citizens of a foreign state, and amount in controversy exceeds $75,000

Question 11

What is the complete diversity requirement?

Answer 11

There is no diversity JX if any P is a citizen of the same state or citizen of the same foreign country as any of the Ds

Question 12

How do you determine the citizenship of an individual and that of a corporation?

Answer 12

Individuals
-> domicile is state in which an individual is present and intends to reside indefinitely; an individual can only have one domicile at a time; and domicile determined when action is commenced

Corporations
-> citizenship is state of incorporation AND state where it has its principal place of business (“nerve center” from which the high-level officers direct, control, and coordinate the activities of the corporation)
-> corporations can have two domiciles technically

Question 13

How does one definitely change his domicile for purposes of diversity jurisdiction?

Answer 13

For purposes of diversity jurisdiction, a persons’s citizenship is based on his/her domicile and continues until definitively changed—i.e., when a person (1) establishes a physical presence in a new place and (2) manifests an intent to reside there indefinitely.

Question 14

What is the standard of proof to determine the amount in controversy?

Answer 14

P’s good-faith assertion in complaint is sufficient UNLESS there is legal certainty that P cannot recover alleged amount.

Question 15

Can you aggregate claims together to reach the amount in controversy requirement for diversity jurisdiction?

Answer 15

Permitted for single P against single D

OR

Multiple Ps enforcing a single title or right which they all have COMMON/UNDIVIDED interest in (counterclaims generally not counted in determining whether P has met amount)

Question 16

Does a permissive counterclaim need to meet the jurisdictional amount in controversy requirement? What about a compulsory counterclaim?

Answer 16

Permissive counterclaim MUST

Compulsory counterclaim doesn’t have to

Question 17

What’s the difference between a compulsory vs permissive counterclaim?

Answer 17

Specifically, if there is a logical relationship apparent, then the counterclaim arises out of the same transaction or occurrence and therefore, it is compulsory;

If there is no logical relationship, the counterclaim is permissive.

Question 18

What can create but also destroy diversity?

Answer 18

Assignment of claims to other parties

Failure to name indispensable parties

Voluntary change of state citizenship

Replacement of parties

Question 19

What is supplemental jurisdiction and how does it work?

Answer 19

Federal court with JX may exercise SJ over additional claim which court would not independently have subject matter jurisdiction (usually state-law claims against a non diverse D),
-> BUT that arise out of a “common nucleus of operative fact” such that all claims should be tried in a single judicial proceeding.

Question 20

Can additional federal questions be heard via supplemental jurisdiction?

Answer 20

Additional claims against the same party can be heard through supplemental jurisdiction if common nucleus of operative fact test is met (it’s the same requirement for pendent JX over claims involving joinder or intervention of additional parties).

Question 21

What diversity jurisdiction rule does a permissive joinder need to follow and what rule does it not need to follow?

Answer 21

Addition of a plaintiff asserting additional claim cannot violate complete diversity rule
BUT not required to satisfy jurisdiction amount.

Question 22

What diversity jurisdiction rule does a counterclaim need to follow and what rule does it not need to follow?

Answer 22

Compulsory counterclaims need to satisfy jurisdiction amount, but permissive counterclaims must satisfy both DJ requirements (diversity of parties AND jurisdictional amount).

Question 23

What is a cross-claim?

When does a cross-claim need to satisfy DJ requirements and when does it not?

Answer 23

May be asserted by a D against another D or by a P against another P, if the cross-claim arises out of the same transaction or occurrence as the initial claim

No amount in controversy or citizenship requirement if the court has SMJ over original complaint (if it doesn’t then you do need to meet the DJ requirements).

Question 24

When can a D remove the case from state court to federal court?

Answer 24

D may generally remove case from state court to federal district court having SMJ

Question 25

To what federal court must removal from district court go into?

What happens if the removal is done to the wrong court?

Answer 25

Removal must be to the district court for the district and division in which the state court action is pending

Removal to the wrong district court is subject to a motion to remand (or transfer to the proper federal court)

Question 26

When is generally right to remove determined?

Answer 26

Right ro remove is determined by pleadings filed when notice to remove is filed

Question 27

Must diversity exist in a DJ during the time of notice of removal is filed?

Answer 27

Diversity must exist at time of filing of original action as well as at the time notice of removal is filed.

UNLESS
-> party preventing diversity is dismissed
OR
-> non diverse party against whom P has no colorable claim was fraudulently joined to defeat diversity

Question 28

What happens when removal is based solely on DJ, what new constraint is placed on the removal?

Answer 28

If removal based solely on DJ, claim may be removed only if no D is a citizen of the state in which the action was filed.

Question 29

What happens if there are FQ joined with claims that aren’t independently removable, can anything be removed?

Answer 29

Entire case may still be removed.

Question 30

What is the notice rule regarding when D wants to file for removal?

Answer 30

D must file notice within 30 days after receipt by or service on the D of the initial pleading.

Question 31

Who must consent/join in removal with regards to a federal question?

Answer 31

Only Ds against whom federal claim is filed must consent/join removal

Question 32

What is the limitation for removal based on DJ?

Answer 32

Such removal cannot occur more than one year after acton is commenced UNLESS the P acted in bad faith

Question 33

When can remand take place where the court is found to lack SMJ?

Answer 33

Any time before final judgment is rendered the case can be remanded to the court it came from (goes back to state court).

Question 34

When can remand take place where the reason for remand is based on any other reason apart from court lacks SMJ?

Answer 34

motion to remand for any defect other than lack of SMJ must be within 30 days after filing of notice of removal