Subject Matter Jurisdiction & Erie Doctrine

Question 1

what are the requirements for diversity jurisdiction?

Answer 1

1) complete diversity (no plaintiff is a co-citizen with any defendant)
2) amount in controversy exceeds 75k

Question 2

what are the requirements for alienage jurisdiction?

Answer 2

must be a citizen of a U.S. state v. a citizen or subject of a foreign country

Question 3

when is diversity of citizenship determined?

Answer 3

must exist at the time the suit is filed
**NOTE = need not exist at the time of the CoA AND not defeated if (after start of suit) party later becomes non-diverse from opponent

Question 4

where is an individual a “citizen” for diversity purposes?

Answer 4

the state in which they are domiciled

Question 5

how does an individual establish a domicile?

Answer 5

1) physical presence in the place, AND
2) intention to remain there indefinitely
**NOTE = new domicile not established until BOTH are met (can’t have more than one domicile at a time)

Question 6

where is a corporation a “citizen” for diversity purposes?

Answer 6

the state in which it is incorporated AND its principal place of business
**NOTE = usually one place but can be multiple

Question 7

what is a corporation’s principal place of business?

Answer 7

the state from which the corp’s managers direct, control, coordinate business activities (nerve center test)
**NOTE = different from PPB in the PJ context

Question 8

how is the amount in controversy calculated?

Answer 8

only the claim for relief itself is considered (litigation costs/interest on the claim are NOT included)

Question 9

when can claims be aggregated for amount in controversy purposes?

Answer 9

where a single plaintiff aggregates all her claims against a single defendant (claims can be unrelated, no cap on #)

Question 10

how is amount in controversy calculated for joint claims?

Answer 10

using the total value of the claim as a whole (# of parties to the claim is irrelevant)

Question 11

what types of claims are excluded from diversity jurisdiction? (4)

Answer 11

1) divorce
2) alimony
3) child custody
4) actions to probate an estate

Question 12

what is federal question jurisdiction?

Answer 12

where plaintiff’s claim arises under federal law (key Q = is the plaintiff enforcing a federal right?)
**NOTE = federal defenses not enough

Question 13

what is the common nucleus test for supplemental jurisdiction?

Answer 13

claim without SMJ that we want in federal court must share a common nucleus of operative fact with the claim that satisfies federal SMJ

Question 14

when is the common nucleus test always met?

Answer 14

when the claim arises out of the same transaction or occurrence as the underlying case

Question 15

what is the limitation on supplemental jurisdiction for diversity cases (and the one exception to it)?

Answer 15

claims by plaintiffs cannot invoke supplemental jurisdiction
**UNLESS = when there are multiple plaintiffs, and a claim by one plaintiff doesn’t meet the amount in controversy requirement (usually joint tortfeasors)

Question 16

how do federal courts assess the exercise of supplemental jurisdiction?

Answer 16

even if requirements are met, courts have discretion to decline (usually because underlying claim dismissed early on OR the state law is complex/predominates)

Question 17

what are the 2 main Erie steps?

Answer 17

1) is there some federal law on point that directly conflicts w/ state law? (if yes, use federal law)
2) if not, the federal judge must use state law if the issue is substantive (not procedural)

Question 18

what are the 5 clearly “substantive” issues for Erie purposes?

Answer 18

1) conflict or choice of law rules
2) elements of a claim or defense
3) statutes of limitations
4) rules for tolling statutes of limitations
5) standard for granting a new trial specifically because the jury’s damages were either excessive or inadequate

Question 19

what are the 3 test for defining what is “substantive” for Erie purposes?

Answer 19

1) outcome determinative = would applying/ignoring state law effect the outcome?
2) balance of interests = does federal or state court have the stronger interest in having its rule applied?
3) avoidance of forum shopping = if we ignore state law, will it cause parties to flock to fed courts? (if so, use state law)