Subject Matter Jurisdiction Flashcards
What is Subject Matter Jurisdiction generally?
A court’s authority to hear a case based on the type of case, not the identity of the defendant or property location.
SMJ General RULE
Subject Matter Jurisdiction may exist…
for both state and federal courts, therefore, the P may file in federal or state court.
What are the two main types of subject matter jurisdiction?
- Federal Question Jurisdiction
- Diversity of Citizenship Jurisdiction
What is Federal Question Jurisdiction?
Exists when the plaintiff’s right to sue arises out of federal law.
What are the express sources of Federal Law ranked in order?
- Federal common law
- US Constitution
- US Codes/Ordinance
- US Treaties
- Federal Administrative Regulations/Codes
True or False: A defense under federal law creates Federal Question Jurisdiction.
False
} The mere fact that you are claiming a defense under a fed law will not create Fed Q jurisdiction.
} However, you can assert a defense in a state court for Fed Q J.
What is the Implied Federal Right of Action
the source of Fed Law need not expressly state that the Plaintiff has right to sue in Fed Court for SMJ to exist.
Implied Federal Right of Action
What is the Cort v. Ash Test?
A test with four factors to determine if an Implied Federal Right of Action exists.
List the four factors of the Cort v. Ash Test.
- 1) Whether the plaintiff belongs to the class of persons the federal statute was designed to protect
- 2) Whether Congress intended to create or deny a private remedy
- 3) Whether the remedy sought by the plaintiff is consistent with the statutory scheme
- 4) Whether the right or remedy was traditionally regulated to state law
must raise each factor for both sides to argue
Fed Q Jusridiction may exists if a Federal Corp….
is created by congress in which the U.S. govt owns more than 1/2 stock in the corporation
® If the U.S. owns more than half of the stocks of a corporation–> then U.S. is the owner of company–> thus it becomes an fed Q J issue & VICE VERZA.
What is Supplemental Jurisdiction (Test) for Fed Q Jurisdiction?
- 1) Allows a federal court to hear a state claim when it is coupled with a federal claim arising from the same operative facts
- 2) AND is such that the P would ordinarily be expected to try in one proceeding.
What must be established for Supplemental Jurisdiction to apply?
The state claim must arise from the same occurrence as the federal claim and have at least one federal claim.
but make sure the fed claim must be a source of fed law or implied fed right of action.
After Supp J is established, if the fed courts find that a Fed Question should be dismissed for…
….lack of PJ or D failed to state a CofA for a fed claim –> the state claim goes back down to state court
For Fed Q Jurisdiction, before the state claim goes back down to state court…
- if the fed claim was filed in good faith altough there is a fundamental defect in the fed claim –> fed court will hear the state claim
- OR if the fed court doesn’t want to hear the state claim –> then the state court may try the state claim.
depending on the facts, however, keep in mind that you could have a choice where the federal judge could hear the state claim or dismiss it in one single answer choice!
What are Specific Statutory Grants?
Certain cases mandated by Congress to be heard in federal courts, such as bankruptcy and postal matters.
® Bankruptcy
® Patent and copyright cases where the US is the D
® Were a foreign state or territory is the D
® Postal matter
® IRS
® Or lawsuits under the Securities Exchange Acts.
What is required for Diversity of Citizenship Jurisdiction?
Fed courts have Jurisdiction over Civil cases between parties from different states and the amounf of controversy exceeds $75,000.
See:
Alienage Jurisdiction
Individual
Corporation
Unincorporated Association
Class Action
US Citizens living abroad
Define Alienage Jurisdiction.
Jurisdiction that exists between a party from the US and a party from a different country.
What does ‘complete diversity’ mean?
Plaintiff and defendant must be from different states.
What does the Diversity prong look at specifically regarding the individual defendant?
looks at where the D calls home/domicile (place of permanent home)
* D has capacity
* OR D lacks capacity
if P’s CofA arises out of incapacitated defendant causing harm to P –> then the court only looks at defendant’s domicile, not his legal rep of the defendant.
Fill in the blank: A corporation’s citizenship is determined by its place of _______ and/or where its ‘nerve center’ is located.
incorporation
Corp in the fact pattern must contain “inc.” at the end of its name.
What is the ‘nerve center’ in relation to a corporation?
The principal place of business where high-level officers direct and control corporate activities.
◊ Look at paying employees
◊ Pay taxes
◊ Paying utilities
For Diversity, how do you establish Unincorporated Associations?
you look at a place where each member calls home.
Incorporation are considered people and their associations lacks “inc.” with its name.
For Diversity, how is Class Action established?
the place where the named members of the lawsuit call home.
® So you must only consider the named members of the lawsuit to find diversity J–> not all the members that weren’t named in the lawsuit
® And when there is a corp involved as a Plaintiff–> then you must consider its incorporated place in one state and its nerve center in another state.
For Diversity, how is a legal representative established?
the place where the person they represent calls home
® Legal rep is defined by state
® When you are suing the legal rep of another–> then you look at the Legal Rep’s domicile they call home.
What is required to meet the $75,000 threshold in a lawsuit?
The plaintiff’s claim must exceed $75,000 in good faith belief.
Even if the jury returns a verdict below $75k–> it is irrelevant since the Plaintiff had a good faith belief that the damages were over $75k
If Plaintiff’s claim exceed $75k –> then we can start looking at defendant’s other type of claims defendant can make.
True or False: Interest and costs are included in the calculation of the $75,000 threshold.
False
True or False: Attorney Fees are only included when they are awarded bc a K or statute permits the atty fees to be calculated to the $75k.
True
True or False: For $75k threshold, equtiable relief is found where courts consider the P’s view, D’s view, or both.
True
Equitable Relief are actions and will consider P’s view, D’s view, or both believing its above $75k (it can exceed $75k)
What are punitive damages in the context of the $75,000 threshold?
May be included if permitted under state substantive law under the Erie Doctrine.
- While there is no brightline rule, courts will take an approach to calculate punitive damages against the D when stated in a state statute
- Similar to Atty fees, it will allows us to get over $75k in damages
What is the significance of class actions regarding the $75,000 threshold?
At least one plaintiff must have an individual award above $75,000 to meet the threshold.
True or False: For the $75k threshold, 1 P against 1 D can have multiple claims added together to reach $75k?
True
True or False: joint and several liability is present for damages that exceed $75k when 1 P sues multiple D’s.
True
- Here you apply joint and several liability where both of defendant’s damages can be added up to exceed $75k
- But if you have defendant’s damages are separate from each other–> then it will not be added together to exceed $75k
For the $75k threshold, what is required for a Class Action suit?
at least one P must have an individual award above $75k to meet the threshold
- Involves a member of a class action and typically one defendant.
- You can’t aggregate all P’s claims to meet the threshold under class action lawsuits.
True or False: For $75k threshold, a D’s ‘s counterclaim can be combined with P’s OG claim to exceed $75k.
FALSE!!
- Also, defendants cannot remove State case to fed court even if D has counterclaim is in excess of $75k, because the counterclaim is filed in state court.
$75k requirement
What is the difference between a Defendant’s Compulsory Counterclaim and a Permissive Counterclaim?
Compulsory Counterclaims need not meet the $75,000 requirement if already in Federal Court; Permissive Counterclaims must meet the requirement.
Yes or No: for the $75K threshold, can D’s compulsory counterclaim be added to P’s claim even if either claims don’t exceed the $75k in order to exceed the $75k req?
YES!!
- Thus it will be permitted to go forward although Defendant’s counterclaim alone may not exceed $75k, but since it is added with P’s claim then it will meet diversity of citizenship jurisdiction.
What happens if a Plaintiff’s claim does not exceed $75,000 but the Defendant’s counterclaim does?
The counterclaim cannot be used to exceed the threshold for removal to federal court.
