Subject Matter Jurisdiction Flashcards
Subject Matter Jurisdiction - Basic Idea
- focused on ct’s power over the case, rather than over the parties
Subject Matter Jurisdiction - Fed Cts vs. State Cts
- 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
Cases That State Cts Cannot Hear
Include:
- patent infringement
- bankruptcy
- some federal securities
- antitrust claims
Effect of Lack of SMJ in Fed Ct
- 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
Types of Federal SMJ
- federal question jurisdiction
- diversity jurisdiction
- keep in mind that if ct doesn’t have one, check for the other
Basic Reqs for Diversity Jurisdiction
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
Complete Diversity Rule
- div jur does not exist if ANY pl is a citizen of the same state as ANY defendant
When is diversity determined?
- whether there is diversity is determined when the case is filed
-> subsequent changes don’t matter
Alienage Jurisdiction
- 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
US Citizens Domiciled Abroad
- 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
DC and Diversity Jurisdiction
- Washington D.C. counts as a state for purposes of diversity jurisdiction
Citizenship
How do you establish a new domicile?
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
Citizenship of a Corporation
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
Where is a corp’s principal place of business?
- state from which the corporation’s managers direct, coordinate + control business activities
- usually the site of corp hq
Citizenship of an Unincorporated Association
- 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
Citizenship of Decedents, Minors + Incompetents
- must sue or be sued through a representative
- BUT the representative’s citizenship is irrelevant -> use the citizenship of the decedent, minor or incompetent
Citizenship - Class Actions
- citizenship of the named representative(s) of the class is used
Calculating the Amount in Controversy
- 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
Aggregation of Claims
- 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
Joint Claims
- use the total value of the claim (ex: against joint tortfeasors)
- number of parties is irrelevant
Determining Amount in Controversy - Equitable Relief
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
Exclusions from Diversity Jurisdiction
- 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”
Collusive Creation of Diversity
- 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
Voluntary Changes of Citizenship
- 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
Federal Question Jurisdiction - Basic Concept
- pl’s claim must “arise under” federal law (ex: fed constitution or statute)
- key q: whether pl is enforcing a fed right
Federal Question Jurisdiction - Test
- “well pleaded complaint” rule
- not enough that some fed issue is raised by the complaint -> pl’s claim itself must “arise under” fed law
