Subject Matter Jurisdiction (SMJ)

Question 1

FRCP - Subject Matter Jurisdiction

What is subject matter jurisdiction? Federal courts vs. state courts?

Answer 1

SMJ is court’s power over a case (not parties).

Federal courts: limited SMJ
* Federal question
* Diversity of citizenship (includes “alienage” jx)

State courts: general SMJ
* Can hear everything except patent infringement, bankruptcy, some federal securities, and antitrust claims

Question 2

FRCP - Diversity/Alienage Jx

What constitutes a diversity of citizenship (and alienage) case?

Answer 2

Amount in controversy = $75K+ (NOT $75K exactly)

(a) citizens of different US states (diversity) OR
(b) citizen of US state vs. citizen of foreign country (alienage)
* Includes permanent resident (green card holder)

Diversity of citizenship requires that no P is citizen of same state as any defendant
* Diversity is assessed at the time the case is filed; P can change her diversity by (genuinely) changing state citizenship after cause of action accrues and before case is filed

Question 3

FRCP - Diversity/Alienage Jx

Can a permanent resident sue under diversity of citizenship?

Answer 3

NO, because permanent resident is NOT a citizen of a state; can claim alienage form of diversity.

However, jx withdrawn if permanent resident is domiciled in same state as an adverse party.

Question 4

FRCP - Diversity/Alienage Jx

How is the “citizenship” of a natural person determined?

Answer 4

It is the one US state where the person is domiciled.

To change domicile, show:
(a) physical presence in new domicile
(b) intent to make it your home for the indefinite future

Intent Factors:
* Job located there
* Buying house there
* Joining civic organizations
* Registering to vote
* Qualifying for in-state tuition

Question 5

FRCP - Diversity/Alienage Jx

What is the citizenship of a corporation vs. unincorporated association?

Answer 5

Corporation:
* Any state/country in which it’s incorporated OR
* The one state/country in which it has its principal place of business

Unincorporated association (partnership, LLC)
* Takes on citizenship of ALL of its members
* For limited partnership, citizenship of general and limited partners

PCP: state from which corp’s managers direct, coordinate, and control business activities (“nerve” center) - usually where corporate HQ is located

If P and D are both corporations and share citizenship in any state, NO diversity jx allowed.

Question 6

FRCP - Diversity/Alienage Jx

Do you use the representative’s citizenship for decedents, minors, and incompetents?

Answer 6

NO. Representative’s citizenship is irrelevant. Use citizenship of decedent, minor, or incompetent.

Question 7

FRCP - Diversity/Alienage Jx

What citizenship is used for class actions?

Answer 7

Citizenship of named representative of class

Question 8

FRCP - Diversity/Alienage Jx

What cannot be included in amount in controversy?

Answer 8

Litigation costs
Interest on claim (BUT you can include interest if you’re suing to recover interest)

Whatever P claims in good faith can be included.

Question 9

FRCP - Diversity/Alienage Jx

When can you aggregate claims for amount in controversy?

Answer 9

When there’s ONE plaintiff against ONE defendant, P can aggregate ALL of her claims against D.

Claims do NOT need to be related to each other

Note: For joint claims (joint liability, where any tortfeasor can be held liable for full claim), use total value of claims. Number of parties doesn’t matter.

Question 10

FRCP - Diversity/Alienage Jx

How can equitable relief (specific performance, injunction, rescission of K) satisfy amount in controversy?

Answer 10

(a) Look at if relief requested has value of more than $75K to P or
(b) Look at if relief request would cost D more than $75K

Make sure to analyze BOTH on an essay

Ex. Injunction would increase P’s property value by $75K or it’d cost D more than $75K to comply with injunction –> satisfies amount in controversy

Question 11

FRCP - Diversity/Alienage Jx

What kind of cases are excluded from diversity/alienage jurisdiction?

Answer 11

Divorce
Alimony
Child custody
Actions to probate an estate

Question 12

FRCP - Federal Question Jx

When is there federal question jurisdiction?

Answer 12

P’s claim “arises under” federal law (federal Constitution or legislation)
(b) Complaint is “well pleaded” - plaintiff’s claim must arise under federal law (not enough that a fed issue simply raised in complaint or D’s defense)
* P is enforcing a federal right

Ex. Federal employment discrimination laws

Regular tort, contract, and property claims are NOT federal (they’re state laws)

Question 13

FRCP - Removal

What does removal do? Who can remove?

Answer 13

Transfers case from state trial court to federal trial court IF federal court has SMJ

CANNOT remove case properly filed in fed court (with SMJ) to state court

Only defendant can remove; plaintiff can never remove (even if D joins in removal)

If removal is improper, federal court “remands” case back to state court.

Question 14

FRCP - Removal

How does D remove a case?

Answer 14

(1) D files “notice of removal” in federal court containing grounds for removal (describe SMJ)
* D must attach all docs served on D
(2) D serves copy of notice of removal on ALL adverse parties
(3) D files copy of notice of removal in state court

Timing: Within 30 days of receiving service of the first paper showing the case is removable (usually process)

Question 15

FRCP - Removal

Who must join the removal?

Answer 15

ALL defendants served with process must join in the removal

Each D can file separate notices of removal (or join in one doc)

For Ds served at different times, if D1’s 30-day period expires but D2 initiates timely removal, D1 and can join D2’s removal.

Question 16

FRCP - Removal

Who must join the removal?

Answer 16

ALL defendants served with process must join in the removal

Each D can file separate notices of removal (or join in one doc)

For Ds served at different times, if D1’s 30-day period expires but D2 initiates timely removal, D1 and can join D2’s removal.

Question 17

FRCP - Removal

What cases can be removed and what are the limitations?

Answer 17

D can remove a case meeting SMJ (diversity jx or federal question)

Limitations on Diversity Jx ONLY
* No removal if D is citizen of forum state (in-state D rule), or
* No removal if it’s been more than one year since case was filed in state court

Note: If claim against in-state D is dismissed, then case becomes removable again (because now there’s no in-state D). Remaining defendants must remove within 30 days of service of the dismissal.
* 1 year limitation still applies unless D can show P intentionally joined in-state D to prevent removal.

Question 18

FRCP - Removal

Which venue can D remove to?

Answer 18

Federal district court “embracing” the state court where case was filed.

Question 19

FRCP - Removal

What must P do to move to remand (back) to state court?

Answer 19

P must make motion to remand within 30 days of D filing notice of removal; otherwise, P waives remand and case stays in fed court.

If removal was improper because federal court lacked SMJ, no time limit on remand

Question 20

FRCP - Subject Matter Jurisdiction

When is an objection to SMJ waived?

Answer 20

Objection to SMJ is never waived. Court without SMJ is powerless to act on case.

Question 21

CA - Subject Matter Jurisdiction

What kind of jurisdiction do CA state courts have?

Answer 21

General subject matter jurisdiction
* Most civil cases
* Most cases arising under federal law

CA’s 58 countries each have ONE Superior Court (trial court)

CA state courts cannot hear: patent infringement, bankruptcy, some securities laws, and antitrust claims

Question 22

CA - Subject Matter Jurisdiction

What are the three classifications of cases CA Superior Courts can hear?

Answer 22

Limited Civil Case: Civil case where amount in controversy =< $25K

Unlimited Civil Case: Civil case where P seeks:
* Determination of title to land
* General equitable relief (permanent injunctions/declaratory relief) or
* Damages > $25K

Small Claims Case: Civil cases =< $10K for individuals; =< $5K for entities.

Limited Civil Case
* Limited discovery
* Can’t file “special demurrer”
* No expedited jury trial
* Court can’t grant permanent injunction, declaratory judgment, or determine title to land
* P must note “limited” classification in caption of complaint (ONLY for limited civil case)

Question 23

How are cases classified?

Answer 23

P determines based on the amount of demand/recovery sought.
* Can look at property value or lien amount in controversy

Question 24

What are the two ways to reclassify cases that were misclassified (or circumstances changed)? What’s required to go from limited to unlimited and vice versa

Answer 24

Automatically: Court clerk reclassifies if P amends amount of controversy in complaint so as to make it limited/unlimited

On motion: A party OR a court can move to reclassify.
* If court reclassifies, give notice to all parties and hold hearing (court must consider judicial arbitration award)

Motion for unlimited to limited: Can reclassify if
* Judge finds case will result in verdict of =<$25K or
* More than $25K can’t be obtained

Motion for limited to unlimited: Can reclassify if
* Judge finds case might result in verdict of > $25K

Question 25

What happens when there are multiple claims, with both limited and unlimited claims?

Answer 25

Only ONE claim needs to meet unlimited requirements for the entire case to become unlimited
* Includes cross-complaints by D

Entire case must be either limited or unlimited

In unlimited case, P can aggregate unrelated claims to satisfy amount in controversy (>$25K)

Question 26

When D attempts to remove case from state court to federal court, did state court need SMJ over the case?

Answer 26

NO, state court need NOT have had SMJ over the case.

Federal court can decide claim in removed civil action even if state court had no SMJ.