Subject Matter Jurisdiction

Question 1

Article III, Section 1

Answer 1

“The judicial Power of the United States shall be vested in one supreme Court, and in such inferior Courts as the Congress may from time to time ordain and establish . . .”

Question 2

Article III, Section 2

Answer 2

“The judicial Power shall extend to all Cases, in Law and Equity, arising under this Constitution, the Laws of the United States, and Treaties . . .; to all Cases of admiralty and maritime; to Controversies between two or more States; between a State and Citizens of another State; [and] between Citizens of different States . . .”

Question 3

§ 1331

Answer 3

“The district courts shall have original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the United States.”

Question 4

The “Well-Pleaded Complaint” Rule

Answer 4

A suit “arises under the Constitution and laws of the US” only when the plaintiff’s statement of his own cause of action shows that it was based on those laws.

It is not enough that the plaintiff alleges some anticipated defense to his cause of action.

Plaintiff is confined to a statement of his own cause of action, leaving the defendant to set up in his answer what his defense is.

Question 5

Broader Smith Line of Cases

Answer 5

Federal question jurisdiction exists if a state law claim necessarily raises a stated federal issue, which is actually disputed and substantial, which a federal forum may entertain without disturbing any congressionally approved balance of federal and state judicial responsibilities.

Question 6

Declaratory Judgment Act § 2201

Answer 6

“[A]ny court of the United States, upon the filing of an appropriate pleading, may declare the rights and other legal relations of any interested party seeking such declaration . . .”

Not intended to enlarge the existing subject matter jurisdiction of the federal courts

Question 7

Challenging Subject Matter Jurisdiction

Answer 7

Rule 12(h) – Waiving and Preserving Certain Defenses.

(3) Lack of Subject-Matter Jurisdiction. If the court determines at any time that it lacks SMJ, the court must dismiss the action.

Question 8

Diversity Jurisdiction § 1332

Answer 8

Matter in controversy exceeds $75k, exclusive of interest and costs AND is BETWEEN

Citizens of different States (a)(1);

Citizens of a State and citizens or subjects of a foreign state (a)(2) (not including an action between citizens of a State and citizens of a foreign state lawfully admitted for permanent residence in the US and domiciled in that State);

Citizens of different States and in which citizens or subjects of a foreign state are additional parties (a)(3); and

A foreign state as plaintiff and citizens of a State or of different States (a)(4)

Question 9

“Citizenship” Under § 1332

Answer 9

Citizenship = Domicile = Physical presence + intent to remain indefinitely

Do not confuse citizenship under § 1332 with residence under § 1391 (venue statute)

While they are likely the same for individuals, corporations are treated differently

Also don’t confuse with the ability to assert PJ over a corporate defendant

Question 10

Aggregating Claims

Answer 10

A single plaintiff with two or more unrelated claims against a single defendant may aggregate

Multiple plaintiffs with a common undivided interest may use the total value of the common interest

Otherwise, you need an anchor claim that satisfies the statutory amount, and whether other claims may be added is a question of supplemental jurisdiction or joinder