Subject Matter Jurisdiction

Question 1

What type of subject matter jurisdiction do federal courts have?

Answer 1

Limited subject matter jurisdiction

Question 2

State have what type of subject matter jurisdiction?

Answer 2

General Jurisdiction: any claim can be filed in state court.

Question 3

What types of subject matter jurisdiction are we concerned with?

Answer 3

Federal Question, Diversity, and Alienage

Question 4

What is Federal Question?

Answer 4

For purposes of §1331 a case arises under federal law only if:
The cause of action under which the plaintiff sues is created by federal law (Creation Test), or
The cause of action under which the plaintiff sues, although not created by federal law, includes an essential Federal Ingredient (Pat Benetar Test, We Belong)

Question 5

What are the elements of the Essential Federal Ingredient Test?

Answer 5

1. Is there an essential federal ingredient embedded in an otherwise nonfederal claim?
2. The federal ingredient must be actually disputed within the context of the case.
3. The Federal Ingredient must be substantial in the sense that it is particularly appropriate for resolution by a federal court.
4. Must not upset the balance between state and federal court claims.

Question 6

How do tort and contract claims play out in the essential federal ingredient test?

Answer 6

They aren’t substantial, and they would upset the balance between state and federal court claims most likely.

Question 7

What is the well pleaded complaint rule, and where is it applied?

Answer 7

Well Pleaded Complaint Rule: Cannot consider anticipated defenses that defendant may raise. Only consider essential elements of plaintiff’s case (e.g. Mottley case)
Used in Essential Federal Ingredient Test under Federal Question.

Question 8

Name the case and outcome with the following fact Pattern: Contract dispute between Mottley’s and Railroad Co.

Answer 8

Mottley Case
Held: Only consider essential elements of plaintiff’s case for essential federal ingredient test (Federal Question); Thus, there was no subject matter jurisdiction.

Question 9

Name the case and outcome with the following fact Pattern: Original claim was a quiet title action that depended on the interpretation of the notice statute in the federal tax law.

Answer 9

Grable Case
Held: There was subject matter jurisdiction under the essential federal ingredient test of Federal Question.
1. Whether Grable was given notice within the meaning of the federal statutes was an essential element of its quiet title claim.
2. The meaning of the federal statute is in dispute and the only legal or factual issue contested.
3. The government has a strong interest in the “prom and certain collection of delinquent taxes.
4. It would be the rare state title case that raises a contested matter of federal law. Thus, balance will remain between state and federal courts.

Question 10

What is required to get into federal court under Diversity of State Citizenship?

Answer 10

1) §1332A(1) Requires disputes between citizens of different states.
To be a citizen of a state, you must be:
a) Citizen of the U.S.
b) Domiciliary of a state.
2) Amount in controversy - must pay a cover >$75,000

Question 11

What is required to be a domiciliary of a state?

Answer 11

a) physically present
b) intend to stay permanently: Where does the party:
(1) exercise civil/political rights?
(2) pays taxes
(3) has real and personal properties
(4) has a driver’s or other license
(5) has bank accounts
(6) has a job or owns a business
(7) attends church
(8) has a club membership

Question 12

How is a Corporation’s domiciliary determined?

Answer 12

They’re citizens of states where incorporate and have principle place of business (e.g. where is their nerve center [corporations have a single location where they’re the domiciliary])

Question 13

What case did the Nerve Center Test come from, and how does it apply?

Answer 13

Hertz Case
The rule of a corporations domiciliary was greatly simplified by the Nerve Center test. It was held that Hertz’s nerve center was in New Jersey, so there was complete diversity between Hertz and a California resident, hence federal court subject matter jurisdiction existed under complete diversity.

Question 14

What is meant by complete diversity?

Answer 14

No plaintiff can have same citizenship of any defendant (e.g. diversity across the vs. sign) [e.g. Two plaintiff’s from Ohio vs. 1 plaintiff N.Y., 1 plaintiff CT is complete diversity]

Question 15

What is required for Alienage to get into federal court under SMJ?

Answer 15

1) §1332A(2) requires all U.S. citizens on one side and all Aliens on the other side.
2) Amount in controversy - must pay a cover >$75,000

Question 16

What determines the amount in controversy for diversity cases?

Answer 16

The sum claimed by the plaintiff controls the inquiry for amount in controversy if made in good faith. (e.g. if a reasonable plaintiff could not have known, good faith belief will control the question)

Question 17

When can a plaintiff aggregate claims to meet the amount in controversy required to get into federal court for Diversity of Citizenship?

Answer 17

Plaintiff can aggregate claims against one defendant, but can’t aggregate claims against multiple defendants, unless they’re joint and severally liable.

Question 18

What is removal jurisdiction?

Answer 18

When defendant removes a case from state to federal court?

Question 19

When does removal jurisdiction apply?

Answer 19

Removal only works with subject matter jurisdiction.

Question 20

What rules apply for removal jurisdiction when there are multiple defendants?

Answer 20

1) All defendant’s must join

2) If every claim cannot be removed, case will not be removed.

Question 21

What is supplemental jurisdiction?

Answer 21

Subject matter jurisdiction analyst must be done for each claim. If a joined claim does not have subject matter jurisdiction, the only way the claim can get in is through supplemental jurisdiction. (e.g. Because of relationship to first claim, second claim can satisfy supplemental jurisdiction. Tag along Jurisdiction).

Question 22

How does supplemental jurisdiction work?

Answer 22

Every claim in the lawsuit must have supplemental jurisdiction.
If non federal dispute is a part of the same case as anchor claim (federal dispute), supplemental jurisdiction applies
(e.g. Claims arise from same underlying facts).

Question 23

How do statutes effect supplemental jurisdiction?

Answer 23

§1367b - only takes away supplemental jurisdiction if original jurisdiction is solely based on diversity.
§1367c - Discretion can be exercised on supplemental jurisdiction based on common sense.