Subject Matter Jurisdiction Flashcards
SMJ: Definition
Power to hear the kind of claim being brought (subject matter - federal claim or diversity)
- lack of SMJ:
- SMJ cannot be waived
- issue can be raised at any time during course of claim, even at SC level
***CA: superior courts have jurisdiction over all cases not assigned to other trial courts by statute. Cases are either limited or unlimited (> $25,000)
SMJ: Exclusive Jurisdiction
Exclusive J only applies to claims under federal law
- e.g. admiralty, bankruptcy, patent, copyright, anti-trust
- Can ONLY be heard in Fed court
Federal question
-Arises under the Constitution, laws or treaties of the US
***CA: no federal question issue; CA courts can hear fed Q unless exclusive fed J
Diversity: Amount in Controversy
Good faith allegation of more than 75K
- aggregation: single P vs. single D–can aggregate all claims. two P’s–need common interest (e.g. partnership)
- rare exception: Ds jointly and severally liable (can aggregate)
- recovers < 75K: may have to pay court costs
- injunction: courts will add the value of an injunction to the monetary claim
Complete Diversity
Need complete diversity between the parties, which means no P and no D is from the same state. It is based on where parties are domiciled at commencement of lawsuit.
Domicile:
1. physical residence–fixed, permanent
2. intent to remain–employed, votes, pays taxes
Corporation:
- any state where incorporated; AND
- PPB (headquarters–where mgmt decisions are made)
CA Trial Courts (3 Kinds)
- small claims: individual P, no more than $7,500. Corporate P no more than $5,000 in a calendar year. No trial, no attorney
- Limited: 25K or less
- Unlimited: MORE than 25K OR claim for equitable relief
Supplemental Jurisdiction
***Not an issue in CA
Each claim must have its own basis for jurisdiction. Where the court has original jurisdiction, it has supplemental jurisdiction over all other claims that are so related that they form part of the same case or controversy (includes claims that involve joinder or intervention)
Supplemental: Elements
- If federal claim, federal claim must be substantial
- Supplemental claim must form part of same controversy:
- same transaction or occurrence; AND
- common nucleus of operative facts
*If main claim is Diversity, cannot destroy complete diversity
Supplemental: Discretionary
Court may decline where:
- claim raises novel or complex issue of state law
- claim substantially predominates over main claim
- court has dismissed original claim
- compelling reasons (rare)
Supplemental: Hypos
1: P asserts a federal claim or diversity claim and a related state law claim against the same individual
2: P asserts a federal or diversity claim in Federal court and has a related claim against another D (e.g. civil rights violation against gov. and related battery claims against gov. employees)
Removal
- P sues in state court; D removes to federal court
- Sec 1441: From state court to federal court (to district embracing state court) by D only (to prevent prejudice)
- Test: Could have been heard in federal court
Removal: Exception and Limitation
Exception: for diversity cases:
- no removal if any D citizen is from forum
- if more than one D, all Ds must move case together
Limitation:
-must file within 30 days after D’s receipt of P’s initial pleadings or service of summons (whichever is shorter)
Removal: Reclassification (CA)
- If court lacks SMJ, may transfer to a court that has SMJ
- unlimited to limited: must be done prior to time to respond to complaint (standard: verdict will necessarily fall short of 25K)
- limited to unlimited: must be done prior to time complaint may be amended; or any time by judge (standard: reasonable possibility of > 25K)
Reclassification: factors
- amount demanded
- statement of damages
- rejected arbitration award
- settlement negotiation
