Subject Matter Jurisdiction

Question 1

What is the most important thing about federal SMJ?

Answer 1

Federal courts have LIMITED SMJ

Question 2

State & Federal SMJ

Answer 2

State: General SMJ
- Any claim (state or federal) can originally be filed in state court
- Certain claims properly filed in state can be removed into federal court

Federal: Specific & Statutory Basis

• We assume that federal and state court are always concurrent
• You can also always file a claim that’s in federal court → in state court unless SPECIFICALLY SAID IN EXAM THAT IT IS EXCLUSIVE

Question 3

ORIGINAL basis for SMJ

Answer 3

1. Diversity
2. Federal Question

Question 4

Federal Question

Answer 4

28 USC 1331: Federal Question

1. Must have constitutional basis for federal jurisdiction

Constitution vs 1331:
Constitution is very broad, If potential federal issue in case, then the constitutional requirement is met

1331 is MUCH narrower than the constitution requires

Question 5

Courts have decided that FQ should be narrower than what the constitution permits. Why?

Answer 5

Policy question for thought

Question 6

2 Ways to satisfy federal question

Answer 6

1. Creation test
2. Pat Benetar - We Belong Test/Essential Ingredient

Question 7

Creation Test

Answer 7

One way to satisfy federal question

• If P brings cause of fact based on FEDERAL STATUTE (FQ met)

Question 8

Pat Benetar / Essential Ingredients Test

Answer 8

2nd way to satisfy FQ

4 Questions to ask to see if it belongs in federal court (fed issue, disputed, substantial, upset state ct balance):
1. Does the claim necessarily involve federal issues? / Does it turn on a federal issue?

2. Is the federal issue disputed by parties?
3. Is the federal issue substantial? / Is the federal issue one of national or local interest? (Not substantial to the parties in the suit but substantial to the nation overall)

–National/Federal (Substantial) Interest: Collection of taxes; protecting the environment; regulate trade

– State (non substantial federal interest) = Garden Variety disputes: Tort and contract disputes even if some part of claim turns on meaning of fed statute

4. When federal jurisdiction is granted, does it upset state court balance?
   —If FQ granted, does it result in a large number of cases finding a way in federal court?

Question 9

FQ - When figuring out FQ, can you consider the the potential defenses the defendant will claim?

Answer 9

NO. The well-pleaded complaint rule: You cannot consider the potential defenses the defendant will claim

Question 10

Diversity - Citizenship

Answer 10

1332, 1331(a)(1)

Citizenship

Natural Person
Citizen in state of domiciliary
Domiciliary: physically stay and intends to stay permanently
Intention: Determined by job, clubs belong to, where you pay taxes, church, bank account (Bank One Factors). & AT TIME OF FILING

Corporation
They are citizens of the state of incorporation and principal place of business
PPB = Nerve Center
Never center = Where the decision makers are/where they make the decisions. There is ONLY ONE true Nerve center (even though there may be other ones –> look for which one is king)

Question 11

How to determine person’s intention in regard to domiciliary

Answer 11

Bank One Factors
- Job
- Clubs belong to
- Property
- Where you pay taxes
- Church
- Bank account
- Civil and political rights

Question 12

When is intention as it related to a person’s domiciliary decided?

Answer 12

Intention is determined at the time of filing

If you bring in stuff after filing, it would be only to show intent to stay at that time of filing

Question 13

What happens when someone is splitting time at different locations?

Answer 13

Individuals CANNOT have TWO domiciles
When someone is splitting time, look at where their domicile initially was and then look at Bank One factors

Question 14

Corporation - Citizenship

Answer 14

Section 1332(c)(1): a corporation shall be deemed a citizen of every State or foreign state by which it has been incorporated and of the State or foreign state where it has a its principal place of business

Principal Place of Business: = Nerve center

Nerve Center: Where there are decision makers and where they make the decisions
ONLY ONE “NERVE CENTER” (if it appears that there may be multiple nerve centers, have to look at which one is king)

Question 15

Corporation’s Nerve Center

Answer 15

Where there are decision makers and where they make the decisions

ONLY ONE “NERVE CENTER” (if it appears that there may be multiple nerve centers, have to look at which one is king)

Question 16

1332

Answer 16

Requires COMPLETE DIVERSITY

All P and Ds must have diverse citizenships; no adverse party can share residency with another adverse party

Different on sides of the V

Question 17

Federal Diversity

Answer 17

• Constitution: Only minimal diversity required (only one P needs to have a different residency from one D)
• 1332: Complete diversity

Question 18

Why does Congress choose a more narrow definition (1332, complete) than the Constitution?

Answer 18

Potential policy question to think about

Question 19

Amount in Controversy - Origin

Answer 19

Statutory

Question 20

Amount in Controversy Requirements

Answer 20

$75k+
Sum claimed by plaintiff
Requires legal certainty
Amount must be in GOOD FAITH
If at time of filing, P cannot get 75K+, there is NOT GOOD FAITH

Question 21

Amt in Contro - Legal Certainty

Answer 21

Requires legal certainty

Good faith standard is a subset of legal certainty

ASSUME plaintiff is acting in good faith with number

If yes legal certainty: yes, good faith
If there isn’t a legal certainty (it is possible) about you getting less than 75K, then assume that more than 75K number is in good faith.

If no legal certainty = no good faith
If there is a legal certainty that you can’t get more than 75K and wrote down in complaint more than 75K, you were not acting in good faith

Determining legal certainty: Look at similar cases and jurisdictions and the opinions of courts there with persuasive authority

Question 22

Aggregate - One Plaintiff

Answer 22

One party can aggregate all claims against ONE defendant even if the claims AREN’T actually RELATED to get more than 75K

One party CANNOT aggregate claims against MULTIPLE defendants in order to meet the amount in controversy

Question 23

Aggregate - Separate/Multiple Plaintiffs

Answer 23

Separate plaintiffs CANNOT aggregate claims against multiple defendants, UNLESS COMMON INTEREST

No joint or several liability on exam unless specifically mention that is the fact patterns

Question 24

Removal

Answer 24

1441, 1446, 1447

When a defendant and only a defendant removes a matter in state court to federal court. Only works ONE WAY
(STATE → FEDERAL COURT)

All served defendants subject to removal have to agree to removal

Homeboy rule: In cases upon which the original jurisdiction that is being relied upon to get something to fed court is THROUGH diversity, a defendant cannot remove if he or any any defendant is citizen of FORUM STATE

Removal can only work if plaintiff could have originally brought matter in federal court (diversity, or FQ)
—Any removal requires SMJ analysis

Remand - federal court sends it back to state court it started in
—-No remand unless there is a removal first

Question 25

1441c - SPECIAL CARVE OUT OF REMOVAL

Answer 25

If you have at least one federal question claim and at least one claim outside original and supplemental jurisdiction of court, then you can REMOVE THE WHOLE CASE but all claims OUTSIDE of original and supplemental get severed and SENT BACK to state court – special carve out of removal

Question 26

Remand

Answer 26

Federal court sends it back to state court it started in
—No remand unless there is a removal first

Question 27

Supplemental Jurisdiction - Definition

Answer 27

Defn: Can get into federal court even if you do not have original jurisdiction

Requirements
Every claim in lawsuit must have jurisdiction
1367: Must have original anchor standalone claim that satisfies original jurisdiction

Additional Considerations:
Gibbs case permits supplemental jurisdiction under constitution

Constitution allows federal jurisdiction over certain disputes that would otherwise not be appropriate in federal court if non-federal claims were a part of one constitutional case or controversy

In Gibbs, court assumes that by Congress not saying otherwise, court can exercise supplemental jurisdiction whenever they see fit
—In order for there to be supp jurisdiction:
——-Yes constitutionally okay but verify RELEVANT STATUTE AUTHORIZES jurisdiction = 1367
——-1367- authorizing supplemental jurisdiction statutes

Question 28

Supplemental Jurisdiction and Constitution

Answer 28

Gibbs case permits supplemental jurisdiction under constitution

Question 29

Supplemental Jurisdiction & 1367

Answer 29

1367 - 3 things authorize

1. 1367(a) - GRANT supplemental jurisdiction to court if tagalong claim is part of same case or controversy as independent, anchor claim
2. 1367(b) - TAKEAWAY - takes away supp jurisdiction in some cases
   —Only applies if original jurisdiction is founded solely upon diversity (it doesn’t matter if based on FQ) — Only removes based on certain claims, not all claims
3. 1367(c) - DISCRETION
   If court has supplemental jurisdiction under (a) and it is not taken away by (b), Court has DISCRETION to KEEP tag along claim or can REJECT based on factors listed in 1367(c)

Factors of 1367c to dismiss claim (what court considers when deciding to dismiss) (JUF)
1. Jury confusion,
2. Undermines judicial economy
3. Fairness to litigation is not good
— For 1367c = All we have to understand is exists and why it makes sense for policy reason – why might congress say court has discretion

Question 30

1367c Factors

Answer 30

1367c - Discretion

Factors of 1367c to dismiss claim (what court considers when deciding to dismiss) JUF
1. Jury confusion,
2. Undermines judicial economy undermines
3. Fairness to litigation is not good
— For 1367c = All we have to understand is exists and why it makes sense for policy reason – why might congress say court has discretion