Subject Matter Jurisdiction Flashcards
Basic Idea for SMJ and Question to ask for it:
This is about the court’s power over the case
We know P will sue D in State X. Now the question is: in what court in State X (state court or federal court)?
State’s Jurisdiction to hear a case
State courts can hear any kind of case (minor exception below). They have “general” SMJ.
What are cases that State Law cannot hear?
Cases arising under a few federal laws must be brought in federal court – e.g.,
- patent infringement,
- bankruptcy,
- some federal securities and antitrust claims.
But most cases arising under federal law can be heard by state courts.
What are the two main types of cases that can be heard in federal court?
- Diversity of Citizenship; or
- Federal Question
Diversity of Citizenship Cases
- The case is either: between “citizens of different states” (diversity) or between “a citizen of a state and a citizen of a foreign country” (alienage) and
- The amount in controversy exceeds $75,000.
Who are the right kinds of litigants for a diversity or alienage case?
Complete Diversity Rule
Complete diversity rule. No good if any P is a citizen of the same state as any D
Suppose we have an alien admitted to the U.S. for permanent residence (a so-called “green card” alien). She is domiciled in a U.S. state. Is she considered an alien or a citizen of that U.S. state?
Alien
- – So litigation with her might invoke alienage, but not diversity.
P (a U.S. citizen domiciled in Japan) sues D (CA) in federal court. OK?
- Is there alienage?
- Is there diversity of citizenship?
No alienage - because P is not an alien
No diversity, because P is not a citizen of a U.S.
state
How do you establish a new domicile? It takes two things:
- Physical Presence there AND
- The intent to make that your permanent home
Releavant Factors for Intent to make a place your home
For intent, courts look to all relevant factors –
- like taking a job,
- buying a house,
- joining civic organizations,
- registering to vote,
- qualifying for instate tuition.
P (OH) decides to move permanently to GA. She accepts a job in GA and tells everyone that she intends to live the rest of her life in GA. While driving to GA, she is involved in an auto collision in KY. She is hospitalized in KY. If
she sued now, what is P’s citizenship?
Ohio - because she has not been present in GA
P (NJ) sues D (DC). After filing, P becomes a citizen of DC. Does that mean diversity is destroyed now that it’s DC versus DC?
Two Rules for this Hypo
No – diversity is OK.
There are two rules from this hypo:
- We treat DC as a State
- Test for diversity when the case is filed
When do we determine domocile and when don’t we?
So we do not care what happens to citizenships after the case is filed or what the citizenships were before the case was filed.
Citizenship of a corporation. What is/are the citizenship(s) of a corporation?
1) The State or Country where incorporated AND
2) The State or Country of its PPB (“Nerve Center”)
Citizenship of an unincorporated association (like partnership or limited liability company (LLC)). What is its citizenship?
The citizenship of all its members
XYZ Partnership has partners who are citizens of 18 states. What is XYZ Partnership’s citizenship?
All 18 States
Do we care where XYZ Partnership was formed or has its PPB?
No
If it’s a limited partnership, do you include the citizenships of the general and the limited partners?
Yes, you include ALL partners
Citizenship of decedents, minors, or incompetents
Such persons must sue or be sued through a representative.
The representative’s citizenship is irrelevant.
Use the citizenship of the decedent, minor, or incompetent.
Amount in controversy.
In addition to complete diversity or alienage, P’s claim must exceed $75,000.
Is there any limit on the number of claims that can be aggregated?
No
Equitable relief.
P sues D for an injunction to tear down part of his house that blocks P’s view. Two tests; if either is met, most courts say it’s OK:
- – Plaintiff’s viewpoint: does the blocked view decrease the value of plaintiff’s property by more than $75,000?
- – Defendant’s viewpoint: would it cost defendant more than $75,000 to comply with the injunction?
Exclusions
Exclusions – even if the requirements for a diversity or alienage case are met, federal courts decline to hear some cases.
1) Divorce
2) Alimony
3) Child Custody
4) To probate & estate
Federal Question Cases.
The claim in P’s complaint “arises under” federal law (e.g.,
federal constitution, legislation).
“Well pleaded complaint” rule.
It is not enough that some federal issue is raised by the
complaint. The P’s claim itself must “arise under” federal law. So we look at the claim and ignore other material P alleged.
Ask: Is the P enforcing a Federal Right? (A federal law is not enough)
Once a case is properly in federal court (under diversity or FQ), do we have to test every single additional claim for federal subject matter jurisdiction?
Yes
So every single claim in federal court must have federal subject matter jurisdiction. If it does not, it cannot be asserted in the pending case in federal court. That means that every single additional claim is tested to see if it invokes:
- Diversity
- FQ
Federal Common Law.
Erie means there is no GENERAL federal common law. So
the general common law of contracts, torts, and property is STATE law, and federal courts must apply that state substantive law.
But there are areas in which federal courts are free to make up common law on their own.
