Subject Matter Jurisdiction (SMJ)

Question 1

What are the three types of subject matter jurisdiction?

Answer 1

1. Diversity
2. Federal Question
3. Supplemental

Question 2

What are the requirements for diversity jurisdiction? (2)

Answer 2

1. Suit between citizens of different states or alienage
2. Amount in controversy greater than $75,000

Question 3

What constitutes complete diversity?

Answer 3

No P is a citizen of the same state as any D (But both are citizens of some U.S. state (incl. D.C.))

Question 4

What is alienage?

Answer 4

A citizen of a state against a citizen of another country

(The citizen of another country is not a resident of the same state as any P)

Question 5

What is the difference between federal and state courts in subject matter jurisdiction?

Answer 5

State courts are courts of general jurisdiction

Federal courts are courts of limited jurisdiction - need specific/subject-matter jurisdiction

Question 6

What cases cannot be heard in state courts?

Answer 6

Cases arising under certain federal laws

(e.g., patent infringement, bankruptcy, some securities and antitrust)

Question 7

How do you establish a domicile?

Answer 7

Physical presence in the state WITH the intent to remain indefinitely

Question 8

What are the four citizenship rules?

(Person)

(Corp.)

(Unincorporated Assoc.)

(Decedents/ minors/ incompetents)

Answer 8

Person: the U.S. state of that person’s domicile

Corporation: (1) state or country where incorporated; and (2) the state or country of its principal place of business

Unincorporated Association: Citizenship of all its members

Decedents, minors or incompetents: Representative’s citizenship is irrelevant; use the citizenship of the decedent, minor, or incompetent

Question 9

What is included in amount in controversy?

Answer 9

1. Compensatory damages,
2. nominal damages,
3. punitive damages (if recoverable), AND
4. equitable relief (if existing)

Question 10

When do you test for diversity?

Answer 10

At the time the claim is filed

Question 11

What is the principal place of business?

Answer 11

Where managers direct, coordinate, and control corporate activities (“nerve center”)

Question 12

How is amount in controversy measured for equitable relief?

Answer 12

Either:

1. Plaintiff’s viewpoint–does the act or thing at issue decrease the value of plaintiff’s land, business, etc., by more than $75,000?
   - OR-
2. Defendant’s viewpoint–would it cost defendant more than $75,000 to comply with the injunction?

Question 13

What cases do federal courts REFUSE to hear?

Answer 13

(Exhaustive list)

1. Divorce,
2. alimony,
3. child custody, and
4. Cases where they are called to probate an estate

Question 14

What happens if P recovers less than $75,000?

Answer 14

Amount in controversy still okay

May have to pay D’s litigation costs (basic expenses of litigation like filing and discovery fees, NOT attorney’s fees)

Question 15

What are the aggregation requirements?

Answer 15

Needs to be the claims of one plaintiff versus one defendant

Can be factually unrelated claims

Question 16

What is the well-pleaded complaint rule for federal question?

Answer 16

Must show that the claim itself arises under federal law;

Is not applicable if the federal law mentioned is merely anticipating a defense

(Ask: is the plaintiff enforcing a federal right?)

Question 17

What is “the test” for supplemental jurisdiction?

Answer 17

Must share “common nucleus of operative fact” (Always satisfied when same transaction or occurrence)

Question 18

What is the limitation on supplemental jurisdiction?

Answer 18

The supplemental jurisdiction claim is by the plaintiff

Asserting a claim against a co-citizen (limitation only for diversity jurisdiction cases)

Question 19

Is the supplemental jurisdiction mandatory?

Answer 19

No, it is discretional

Can decline supplemental jurisdiction if:

1. State law claim is complex;
2. State law issues would predominate in the case; OR
3. Underlying claim is dismissed early in the case

Question 20

What is removal?

Answer 20

D transfers the case from a state trial court to a federal trial court

Question 21

What cases can be removed?

Answer 21

Any case that meets the requirements for diversity or federal question jurisdiction

Question 22

What are the exceptions to removal?

Answer 22

Only apply if removing on the basis of diversity.

No removal if D is a citizen of the forum (instate D rule)

No removal more than one year after the case was filed in state court (can be allowed later if federal judge finds bad faith on the part of P)

Question 23

What court is the case removed to?

Answer 23

The federal district court embracing the state court where the case was filed

Question 24

How do you remove a case? (4 steps)

Answer 24

1. D files a notice of removal in federal court stating grounds for removal (subject matter jurisdiction)
2. D attaches all documents served on her in state action
3. D serves a copy of the notice of removal on adverse parties
4. D files a copy of the notice of removal in state court

Question 25

What happens if the removal was improper?

Answer 25

Federal court can remand the case back to state court

Question 26

Who must join in the removal?

Answer 26

All the defendants (who have been served with process)

Question 27

When does the Erie doctrine apply?

Answer 27

When deciding state law claims

(diversity–otherwise it’s a federal law question)

Question 28

What are the steps of the analysis to determine if Erie Doctrine applies?

Answer 28

1. IF federal law is on point AND directly conflicts with state law: Apply Federal law (Supremacy clause);
2. IF there is no federal law on point: Apply substantive state law (from one of the enumerated categories);
3. IF there is no enumerated substantive state law: Determine if state law is substantive (based on three-factor test)

Question 29

What are the three factors for determining whether state law is substantive under Erie step 3?

Answer 29

1. Outcome determinative
2. Balance of interests
3. Avoid forum shopping

Question 30

How long does plaintiff have to move to remand removal?

Answer 30

When removal is for SMJ: anytime

When not for SMJ: 30 days after notice of removal was filed

Question 31

How long does a defendant have to remove a case?

Answer 31

Within 30 days of service of the first paper that shows the case is removable (Usually it’s within 30 days of the service of process)

(N.B. Each defendant’s 30-day period has its own start!)

Question 32

What are the enumerated substantive state law categories under Erie step 2?

Answer 32

1. Elements of a claim or defense
2. Statute of limitations
3. Rules for tolling statutes of limitations
4. Conflict (or choice) of law rules