Subject Matter Jurisdiction

Question 1

What is subject matter jurisdiction over?

Answer 1

The case

Question 2

What types of cases can state courts hear?

Answer 2

All cases. They have general subject matter jurisdiction

Exceptions: a few types of cases that are exclusive to federal court, like patent infringement, or bankruptcy

Question 3

What types of cases can federal courts hear?

Answer 3

1) Diversity of citizenship (and alienage)

2) Federal question

Question 4

What are diversity of citizenship cases?

Answer 4

A case between citizens of different states (all plaintiffs must be of different citizenship of all defendants), and the amount in controversy must EXCEED $75,000

Question 5

What are alienage cases?

Answer 5

Cases between a citizen of a state and a citizen of a foreign country. The amount in controversy also must exceed $75,000

NOTE - if the person is an LPR and is domiciled in the same state as an opposing party, there is no alienage

Question 6

Can a US citizen living abroad qualify for diversity of citizenship or alienage?

Answer 6

No, not a citizen of a state and not an alien

Question 7

How do you determine domicile?

Answer 7

1) Physical presence, AND
2) Intent to make that your permanent home (look at all relevant factors, like taking a job, buying a house, registering to vote, etc)

NOTE - you always have one. If you haven’t established a new one yet, it is your old one

Question 8

When do you test for diversity?

Answer 8

When the case is filed

Question 9

What is the citizenship of a corporation?

Answer 9

1) The state or country where incorporated, AND

2) The state or country of its principal place of business

Question 10

What is a corporation’s principal place of business

Answer 10

Where its managers direct, coordinate, and control corporate activities (the nerve center or headquarters)

Question 11

What is the citizenship of an unincorporated business (e.g., partnership, LLC)?

Answer 11

The citizenship of ALL of its members.

NOTE - We don’t care where it is formed or where its principal place of business is.

NOTE - include ALL members, even if limited partners

Question 12

What citizenship matters for cases brought by a representative for a decedent, minor, or incompetent?

Answer 12

The citizenship of the decedent, minor, or incompetent, NOT the representative

Question 13

Do costs and interests from the date of judgment count towards the amount in controversy?

Answer 13

No, only the amount being sued for counts. Interest can only be included if it is part of the claim

Question 14

Does it matter if plaintiff does not ultimately recover more than $75,000?

Answer 14

No, it just must be clear to a legal certainty that she could have. Use a good faith standard.

NOTE - if she wins less, she might have to pay the defendant’s litigation costs (but not attorney’s fees)

Question 15

What is aggregation?

Answer 15

Adding two or more claims to meet the amount requirement.

Question 16

Can you aggregate factually unrelated claims?

Answer 16

Yes, as many as you want, but must be the same plaintiff against the same defendant

Question 17

Can joint claims be combined to satisfy the amount in controversy requirement?

Answer 17

Yes, for joint claims, we use the total value of the claim. It is not a matter of aggregation

Question 18

How do you calculate amount in controversy for equitable relief?

Answer 18

Either:

1) The plaintiff is claiming more than $75,000 in damages, OR
2) The cost to the defendant will be more than $75,000

Question 19

What types of cases can federal courts not hear even if there is diversity?

Answer 19

Divorce, alimony, child custody, probate

Question 20

What are federal question cases?

Answer 20

A claim in the plaintiff’s complaint arises under federal law (e.g., the Constitution, legislation)

Question 21

What is the well-pleaded complaint rule?

Answer 21

The claim itself must arise under federal law. Is plaintiff enforcing a federal right?

Question 22

What is supplemental jurisdiction?

Answer 22

It provides jurisdiction for a non-federal, non-diversity claim when another claim is already properly in federal court.

Supplemental jurisdiction requires:

1) The second claim must share a common nucleus of operative facts with the first claim (i.e., it arose from the same transaction or occurrence as the underlying case), BUT
2) The second claim CANNOT invoke supplemental jurisdiction if it is a DIVERSITY case, and the PLAINTIFF is trying to raise a claim against a CO-CITIZEN (it is okay if the the problem is the amount in controversy). This limitation does NOT apply to federal question cases

Question 23

Does a court have to allow supplemental jurisdiction?

Answer 23

No, it is discretionary. Can deny it if the state law claim is complex, or state law issues would predominate in the case, or if the underlying claim is dismissed early in the case

Question 24

What is removal?

Answer 24

The defendant removes the case from state court to federal court

Question 25

What happens if removal was improper?

Answer 25

The federal court can remand it to state court

Question 26

How long does a defendant have to remove a case?

Answer 26

Within 30 days of service of the first paper that shows that the case is removable (normally 30 days from service of process)

Question 27

Who must join in removal?

Answer 27

ALL defendants who have been served

Question 28

If a defendant is later added, can the later defendant remove?

Answer 28

Yes, the 30 days starts over

Question 29

Can the plaintiff remove if there is a counterclaim?

Answer 29

No. A plaintiff can never remove

Question 30

What cases can be removed?

Answer 30

Normally, any case that meets diversity or federal question. BUT there are 2 exceptions in DIVERSITY cases:

1) If any defendant is a citizen of the forum state (instate defendant)
2) If more than a year has passed since the case was filed in state court

Question 31

Does a case become removable if the instate defendant is dropped?

Answer 31

Yes, within 30 days of the dismissal of the instate defendant, UNLESS it has been more than a year since the case was filed (exception if the judge finds the plaintiff acted in bad faith by originally joining the instate defendant to prevent removal)

Question 32

Where does the defendant remove to?

Answer 32

The federal district court that embraces the state court where the case was filed

Question 33

Does the defendant have to ask for leave of court to remove?

Answer 33

No, he just does it.

Question 34

How does the defendant remove?

Answer 34

1) He files a notice of removal in federal court that states the grounds for removal (subject matter jurisdiction).
2) He attaches all documents that were served in the state action.
3) He serves a copy of the notice of removal on adverse parties, and
4) He files a copy of the notice of removal in state court

Question 35

Can the defendant allege that the amount in controversy is actually more than $75,000 even if the plaintiff has not claimed that?

Answer 35

Yes. The court will hold a hearing and the burden is on the defendant to show by a preponderance of the evidence the amount is more than $75,000

Question 36

What does the plaintiff do if she thinks the case should not have been removed?

Answer 36

Moves to remand to state court

Question 37

When does the plaintiff move to remand to state court?

Answer 37

If plaintiff thinks removal was improper for a reason other than for lack of subject matter jurisdiction (e.g., for defective notice of removal; there is an instate defendant): within 30 days of the filing of notice of removal.
If plaintiff thinks removal was improper because there is no subject matter jurisdiction: she can do this WHENEVER and the court must remand when it determines there is no subject matter jurisdiction.

Question 38

What is the Erie Doctrine?

Answer 38

How the court decides whether to apply federal or state law to a diversity case

Question 39

What are the steps for the Erie Doctrine?

Answer 39

1) Is there federal law on point that directly conflicts with state law (the Constitution, or a statute, or the FRCP/FRE)? IF SO, APPLY FEDERAL LAW IF IT IS VALID (because of the Supremacy Clause)
2) If there is no federal law on point, state law must be applied if the matter is substantive.
3) If there is no federal law on point, and the law isn’t one of the 4 enumerated clearly substantive matters, the judge must determine if the matter is substantive or procedural

Question 40

How do we know if the federal law on point is valid for the Erie Doctrine?

Answer 40

It does not modify substantive rights, but is instead arguably procedural. It’s always valid!

Question 41

For the Erie Doctrine, what matters are clearly substantive?

Answer 41

1) Elements of a claim or defense
2) Statute of limitations
3) Rules for tolling of statute of limitations, and
4) Conflict/choice of law rules

Question 42

What factors are used to determine if a matter is substantive for the Erie Doctrine?

Answer 42

1) Outcome determinative: would applying or ignoring state law affect the outcome? If so, it’s probably substantive. Apply state law
2) Balance of interests: does either the federal or state government have a strong interest in having its rule applied?
3) Avoid forum shopping: if the federal court ignores state law, will parties flock to federal court? If so, apply state law.

Question 43

Is there federal common law?

Answer 43

Typically no. General common law is state law and the federal courts must apply state substantive law. BUT if Congress passes a statute for a new claim, and there’s no provision for a statute of limitations, federal courts can create common law. Other examples are international relations, admiralty, disputes between states, and the right to sue a federal officer for violating one’s federal rights