Subject Matter Jurisdiction: Federal Question and Diversity

Question 1

Three Basic Requirements for Jurisdiction

Answer 1

1. Subject Matter Jurisdiction [Power of Court to hear the case]
2. Personal Jurisdiction [Power of Court to Decide Rights/Liabilities of Defendant]
3. Venue [Proper District to hear Case]

Question 2

Objections to Subject Matter Jurisdiction

Answer 2

• Can be made at any time by any party.
• The court can also raise this objection

Question 3

Federal Question Jurisdiction

Answer 3

Jurisdiction is granted if the claim arises under Federal Law.

• Look at the face of the well-pled complaint.
• A federal defense does not count for federal question. [Louisville & Nashville R.R. v Mottley]

Question 4

Diversity Jurisdiction

Answer 4

Jurisdiction is proper for cases between citizens of different states, a citizen of a state and a foreign national, IF the amount in controversy exceeds $75,000.

EXCEPTIONS

• Probate
• Domestic Relations

Cannot be brought under Diversity

General Rules

• Diversity must be complete
  
  • Every citizens on plaintiff’s side and every citizen on defendant’s side are from different states
  • Citizens on the same side (i.e. plaintiff or defendant) do not need complete diversity
• Rule: Diversity is assessed at the time of the filing

Question 5

Minimal Diversity

Answer 5

Limited Exception to the Complete Diversity Rule

Rule: If any plaintiff is diverse from any defendant, then minimal diversity exists. Allowed in:

• Federal Interpleader Act
• Class Actions with claims more than $5 million
• Interstate Mass Torts if at least 75 natural persons have died in one accident and the plaintiffs and defendants are from many states (think plane crash)

Question 6

Citizenship Of the Parties

Answer 6

A person is a citizen where they are domiciled

Domicile: is Permanent Residence. (Residence + Intent to Remain Indefinitely = Permanent Residence)

• For representative parties, use the citizenship of the representative EXCEPT
  
  • Litigation involving decedent’s estate, use citizenship of deceased
  • Legal representative of minor, use citizenship of minor child
• Class Actions - use named representative

Corporations

Have two citizenships:

1. State where corporation is incorporated
2. State of its principal place of business (usually where it is headquartered)

Partnerships and Unincorporated Associations

The partnership is a citizen of every state of which its partners are citizens

Question 7

Amount in Controversy Requirement

Answer 7

Applies to Diversity Subject Matter Jurisdiction.

Must EXCEED $75,000

Aggregating Claims to Meet AIC

If one plaintiff and one defendant, plaintiff may aggregate claims to meet requirement.

• If one plaintiff and multiple defendants, plaintiff MAY NOT aggregate claims
• If more than one plaintiff and one defendant, plaintiffs MAY NOT aggregate claims for AIC

Question 8

Removal Jurisdiction

Answer 8

[TESTED OFTEN]

Removal: Moving from state to federal court.

Transfer: Moves case from federal court to federal court

Reverse Removal: IS NOT allowed

Rules

• Removal is only proper if the case could have been brought originally in federal court
  
  • [Federal Question and Diversity Analysis Required]
• Only the defendant may remove
  
  • If multiple defendants, all must consent within 30 days of service

Federal Question and Diversity Analysis

MUST meet requirements of either to be removed. IF using Diversity, in addition to the normal requirements the removal must be requested within one year of commencement of action.

Removal Procedures

Notice of removal is filed in the federal court with a copy to the state court.

When removal notice is filed, state court jurisdiction ends IMMEDIATELY

Question 9

Supplemental Jurisdiction

Answer 9

Basic Rule: Allows a federal court with subject matter jurisdiction over a case to hear additional claims over which the court would not independently have jurisdiction IF all claims constitute the same case and controversy.

Claims are Same Case and Controversy if they arise out of the same common nucleus of operative fact.

Question 10

Supplemental Jurisdiction and Federal Question

Answer 10

Easy one, if passes general Supplemental Jurisdiction rules then it is valid.

Joinder is not a bar

Question 11

Supplemental Jurisdiction and Diversity

Answer 11

Statute bars supplemental jurisdiction when Joinder is used (Rules 19, 20).

Additionally, Rule 14 (Third-party practice) and Rule 24 (Intervention) also prevent supplemental jurisdiction.

Question 12

Supplemental Jurisdiction and Counterclaims

Answer 12

• Compulsory Claims (claims that need to be asserted timely or will be lost) do not need to check for the AIC requirement if brought by the defendant. If brought by the plaintiff, check AIC.
• Permissive Counterclaims: Must meet all Diversity requirements
• Cross Claims: Must be related to a claim over which the court has jurisdiction (“anchoring claim”) and be asserted against a party made under Rules 14, 19, 20, 24.