Subject Matter Jurisdiction Flashcards
What cases can be brought in federal court?
(2 elements)
1) Cases involving a federal question.
2) Diversity cases.
2 (of 5) Ways to get a federal question for SMJ purposes?
1) Federal law creates an action: Case is about violation of a federal law. (Article III “arising under” federal statutes, US Constitution, treaties, federal regulations)
2) State law where a federal question is arguably a major component - Bracken, Gunn Bracken v. Matgouranis (removal to fed court, wacky ass attempted murder, extortion case. ▲ thought π would assert absolute privilege so said refusal would be violation of free speech and removed to fed court.)
Gunn Test
(4 elements)
Federal jurisdiction over a state law claim will lie if the federal issue is (aka Federal Question TEST):
1) necessarily raised,
2) actually disputed,
3) substantial (important to the federal system as a whole) and,
4) capable of resolution in federal court without disruption of the federal-state balance
Can Subject Matter Jurisdiction be waived?
Unlike personal jurisdiction, subject matter jurisdiction cannot be waived. However defects in removal can be waived.
Removal requirements for diversity
(2 elements)
1) Parties must have complete diversity at the time of filing AND time of removal. Change in facts after removal will not defeat diversity.
2) §1446(c)(2)(A) - amount stated in the pleading used, or notice of removal may state if initial pleading was for non-monetary relief, or state law limits amount of relief.
Removal requirements for federal question
(6 elements)
1) Can emerge at any time.
2) No 1 year requirement.
3) No forum ▲ rule.
4) 30 days to remove.
5) 30 days to remand.
6) ▲ ‘s burden of showing federal jurisdiction.
Diversity Aggregation for > $75,000
(3 elements)
Multiple claim against 1 ▲: YES
Multiple ▲’s with same π claim: NO
Multiple π’s suing 1 ▲ with claims under $75k: NO
Removal
§1441
(4 Elements)
Removal of Civil Actions
- ▲ waives venue challenge.
- Not an option for π because they should have brought it where they wanted it.
(a) Generally
1) Removal to federal district where state court lies, at ▲’s option.
2) Fed court must have original JD (diversity/fed ?)
(b) Removal based on diversity
(2) Forum Defendant Rule - not removable if ▲ resides in the forum state.
(c) Federal claim + State claim = sever and remand state claim, hear federal claim in DC.
(d) Foreign state ▲ can remove to embracing district
Well-pleaded complaint rule
π’s initial complaint must contain the references to the federal question and the federal issue evoked.
The federal question and issue cannot arise in an anticipated defense, it must be presented from the initial complaint.
General Concepts of Subject Matter Jurisdiction
(4 elements)
- Power of the court over the subject matter; federal courts are courts of limited jurisdiction (and most federal claims can be pursued in state court)
- Unlike personal jurisdiction, subject matter jurisdiction cannot be waived
- Defects in removal can be waived (if no motion to remand within 30 days) (28 USC §1447(c)) Waivable defects:
- §1441(c)(2) - All defendants involved in the federal claim must join
- §1441(b) - Forum defendant rule
- Late removal (waited more than 30 days to remove)
- Burden of proof for subject matter jurisdiction is on the party asserting federal court jurisdiction
Subject Matter Jursidiction Analysis
(4 elements)
1) Determine if removal was timely.
2) Look at well pleaded complaint. Does federal law create the cause of action?
3) If state law where federal law is a component of the claim or defense
a. Not sufficient if the federal question arises only as a defense or a response to a defense (e.g., Bracken)
b. Test for whether federal question is embedded in a state law claim (not just merely a defense part part of plaintiff’s case) involves a consideration (under Gunn) of whether the federal issue is:
i. necessarily raised
ii. actually disputed
iii. substantial (to the federal system as a whole)
iv. capable of resolution in federal court without disrupting the federal-state balance approved by Congress (looks at both federal and state court scenarios)
4) Analyze diversity jurisdiction. Has a claim been stated against a non-diverse ▲? (Fraudulent joinder)
Diversity of citizenship
4 (elements)
- citizens of different states
- citizens of a state and citizens or subjects of a foreign state
- citizens of different states and in which citizens or subjects of a foreign state are additional parties
- a foreign state as plaintiff and citizens of a state or different states
Rules Governing Diversity of Citizenship
(4 elements)
- Corporation: state of Inc., PPB (Hertz defines as “nerve center,” meaning that “the place where the corporation’s high level officers direct, control, and coordinate the corporation’s activities”)
- Individual: domicile
a. Old domicile exists until new one is clearly formed
b. Factors to consider in determining domicile include where a person exercises political rights, pays taxes, owns real/personal property, has driver’s license, has bank accounts, attends church, has place of employment, where family is, etc.
c. Appellate court => deference => district court ruling on domicile unless clearly erroneous. - For a dual citizen:
a. Diversity jurisdiction can be invoked only when a dual citizen’s US domicile is diverse from the opponent’s domicile (Coury)
b. US citizen domiciled abroad =/= citizen of any state =/= diversity - Complete diversity required (unless statute says otherwise)
Statutorily non-removable claims
District court must sever and remand non-removable claim and keeps the rest (Brown v. K-MAC)
Removal, Timing
(3 elements)
A. §1446 - Removal: 30 days after receipt of complaint
B. §1447 - Remand: 30 days after removal
C. Time Limit on Removal for diversity
- One year
- Time limit is not applicable if plaintiff is guilty of bad faith (purposefully delaying a key act, such as dismissing a non-diverse defendant, until after the one-year period) (28 USC §1446(c)(3)(B)) => International Paper example!
- Contrast federal question: if a federal cause of action is added during the case, that can create federal question jurisdiction and justify removal even after more than a year.
