Subject Matter Jurisdiction

Question 1

Subject Matter Jurisdiction - Basic Idea

Answer 1

• focused on ct’s power over the case, rather than over the parties

Question 2

Subject Matter Jurisdiction - Fed Cts vs. State Cts

Answer 2

• fed courts have limited smj -> can only hear certain kinds of cases
• state cts have general smj -> can hear any kind
  -> w/in state system, there will usually be some type of ct that can hear the case

Question 3

Cases That State Cts Cannot Hear

Answer 3

Include:
- patent infringement
- bankruptcy
- some federal securities
- antitrust claims

Question 4

Effect of Lack of SMJ in Fed Ct

Answer 4

• SMJ CANNOT be waived
• if case doesn’t invoke fed SMJ, fed ct can’t hear the case -> if it does, the judgment is void

Question 5

Types of Federal SMJ

Answer 5

• federal question jurisdiction
• diversity jurisdiction
• keep in mind that if ct doesn’t have one, check for the other

Question 6

Basic Reqs for Diversity Jurisdiction

Answer 6

1) case is either a) between citizens of different US states OR b) between citizens of a US state + a citizen of a foreign country AND
2) amount in controversy EXCEEDS $75,000

Question 7

Complete Diversity Rule

Answer 7

• div jur does not exist if ANY pl is a citizen of the same state as ANY defendant

Question 8

When is diversity determined?

Answer 8

• whether there is diversity is determined when the case is filed
  -> subsequent changes don’t matter

Question 9

Alienage Jurisdiction

Answer 9

• technically, it’s called alienage when you have a citizen of a US state + a citizen of a foreign country
• keep in mind that green card holders count as foreign citizens, even if domiciled in the US

Question 10

US Citizens Domiciled Abroad

Answer 10

• don’t count as citizens of a US state -> can’t get diversity jurisdiction
• but ALSO don’t count as citizens of a foreign country -> can’t get alienage jurisdiction

Question 11

DC and Diversity Jurisdiction

Answer 11

• Washington D.C. counts as a state for purposes of diversity jurisdiction

Question 12

Citizenship

Question 13

How do you establish a new domicile?

Answer 13

Need:
1) physical presence in the new domicile AND
2) intent to make that place your home for the indefinite future

Factors courts look at for intent include:
- taking a job
- buying a house
- joining civic orgs
- registering to vote
- qualifying for in-state tuition

Question 14

Citizenship of a Corporation

Answer 14

Corporation = citizen of:
- any state or country in which it is incorporated AND
- the one state or country in which it has its principle place of business

• make sure to evaluate both on exam

Question 15

Where is a corp’s principal place of business?

Answer 15

• state from which the corporation’s managers direct, coordinate + control business activities
• usually the site of corp hq

Question 16

Citizenship of an Unincorporated Association

Answer 16

• ex: partnerships, limited liability cos
• unincorporated assoc. takes on the citizenships of all of its members
• if it’s a limited partnership, include the citizenships of both general AND limited partners
• in theory, could be a citizen of all 50 states

Question 17

Citizenship of Decedents, Minors + Incompetents

Answer 17

• must sue or be sued through a representative
• BUT the representative’s citizenship is irrelevant -> use the citizenship of the decedent, minor or incompetent

Question 18

Citizenship - Class Actions

Answer 18

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

Question 19

Calculating the Amount in Controversy

Answer 19

• only the claim itself is considered
  -> litigation costs or interest on the claim are not included
• exactly $75,000 not enough -> need to EXCEED that amount
• whatever pl claims in good faith is fine unless it’s clear to a legal certainty that the pl can’t recovery more than $75,000
  -> doesn’t matter if they wind up winning less, as long as original claim was made in good faith

Question 20

Aggregation of Claims

Answer 20

• any single pl can aggregate ALL of her claims against a single def to meet the jur req
  -> claims don’t need to be related to each other
• BUT can’t aggregate claims of multiple plaintiffs to reach the amount in controversy

Question 21

Joint Claims

Answer 21

• use the total value of the claim (ex: against joint tortfeasors)
• number of parties is irrelevant

Question 22

Determining Amount in Controversy - Equitable Relief

Answer 22

Two tests:
- one looks at pl’s viewpoint: if granted, does requested relief have a value of more than $75,000 to pl?
- other looks at def’s viewpoint: if granted, will relief requested by pl cost def more than $75,000?

• if either is met, most courts find that the amount in controversy is satisfied

Question 23

Exclusions from Diversity Jurisdiction

Answer 23

• even if reqs for div or alienage jur are met, fed cts decline to hear actions for divorce, alimony, child custody + actions to probate an estate
• can be called “excluded cases”

Question 24

Collusive Creation of Diversity

Answer 24

• if party attempts to create diversity by a sham transaction, such as assigning a claim for collection purposes merely to create diversity SMJ, the court will ignore the transaction + declare that diversity doesn’t exist

Question 25

Voluntary Changes of Citizenship

Answer 25

• pl can create diversity by changing her state citizenship after the cause of action accrued but before the suit is commenced
• if it’s a genuine change of citizenship, diversity is OK

Question 26

Federal Question Jurisdiction - Basic Concept

Answer 26

• pl’s claim must “arise under” federal law (ex: fed constitution or statute)
• key q: whether pl is enforcing a fed right

Question 27

Federal Question Jurisdiction - Test

Answer 27

• “well pleaded complaint” rule
• not enough that some fed issue is raised by the complaint -> pl’s claim itself must “arise under” fed law