Subject Matter JX Flashcards
What are the 5 ways congress grants SMJ?
Federal Question, Legislative, Diversity, Supplemental, and Removal
What is Presumption in SMJ?
Federal courts must assume absence of SMJ, burden is on party invoking court to prove SMJ
What is Waiver in SMJ?
SMJ cannot be waived/agreed to between parties, unlike Personal Jurisdiction
Objection to SMJ?
Any party, including the court, may object to SMJ at any point, but if a party is not contested at the lower court, it may not be challenged
Generally, federal courts must adjudicate if SMJ, but can abstain/stay for the following four reasons:
(1) A resolution of a state law issue by the state court would eliminate need for the federal court to decide a federal constitutional issue (Pullman abstention, equal protection);
(2) Avoidance of federal involvement with complex, greatly important, state regulatory scheme (Louisiana Power and Light, eminent domain interpretation);
(3) State action involves criminal punishment/contempt of court/ civil fine and federal court is asked to enjoin such activity (Younger abstention, pending state prosecution);
(4) Parallel proceedings that go beyond mere waste of judicial resources (Colorado River, duplicative adjudication)
Contrary to abstention, when should federal courts intervene?
Plaintiff must demonstrate:
Unusual circumstances requiring equitable relief
Dire irreparable injury
Prosecutorial bad faith
SMJ – FQ – Basis?
Article 3, Section 2, gives Congress authority to grant original jurisdiction to federal courts.
SMJ – FQ – Concurrent vs Exclusive JX?
States and federal courts have concurrent jurisdiction of FQ claims, except when Congress expressly provides that the jx of the federal courts is exclusive (SEC, patents, etc.)
SMJ – FQ – What is FQ and what is not?
Look to cause of action and underlying right, make arguments for both sides.
If U.S. owns over 50% of federal corp, then FQ
State laws incorporating federal standards, not FQ
If no federal remedy, then argue both sides of FQ
SMJ – FQ – Well-pleaded complaint rule
Federal law issue must be presented on the face of the P’s complaint, only necessary elements of the P’s claim can be considered, potential defenses/answers/counterclaims don’t count. (For both original and removal jx).
For declaratory relief, which anticipates infringement of federal right, no FQ unless there is no remedy available in state law.
SMJ – Diversity – Basis?
Article 3, Section 2; 1332 gave district courts jx over actions involving a dispute over 75K and the parties to an action are:
Citizens of different states
Citizens of a state and citizens/subjects of a foreign state (additional parties)
Foreign state is a P
SMJ – Diversity – State law exclusions
Probate and domestic relations (must be primarily probate or domestic)
SMJ – Diversity – FSIA
Under FSIA, a suit may not be brought against a foreign state unless one of the following exemptions apply:
Commercial activity
Seizing property in violation of international alw
Tort committed in the U.S.
SMJ – Diversity – Complete diversity, realignment and date of determination
If any P is in the same state as any D, then no diversity, if any P AND any D is an alien then no diversity.
Realignment – Courts will not allow a P to be listed as a D, will look to ultimate interests
Date of determination – time the case is filed, before and after doesn’t matter
SMJ – Diversity – Complete diversity exceptions (3)
Interpleader – Property dispute needs only two adverse claimants of diversity of citizenship to establish SMJ
Class actions greater than 5,000,000 need only one member of P class to be diverse from any D
Multiparty/Multiforum – If 75 natural persons have died from single accident, only one P needs to be diverse from any D IF (i) D resides in different state than the accident state OR (ii) Any two Ds reside in different states OR (iii) substantial parts of the accident took place in different states. However, district court must abstain if majority of all Ps are from the same state as primary Ds and the claims will be governed primarily by that state.
SMJ – Diversity – Citizenship of Individuals
Must be US Citizen + Domicile
Domicile – only one, continues until manifestation of intent to remain in new state and physical presence in new state.
Date of determination – time case if filed, doesn’t matter before or after.
SMJ – Diversity – Citizenship of aliens and stateless persons
Exists when aliens on one side and state citizen on another side. If alien is admitted for permanent residence in US and is domiciled in same state as other party then no diversity.
No diversity if a party is stateless alien, or US citizen domiciled in foreign country.
SMJ – Diversity – Citizenship of minors, incompetents, etc.
Look to minor’s citizenship, not to representation. Unemancipated minor is same as parents, or same as custodial parent.
SMJ – Diversity – Citizenship of class actions with an amount in controversy of less than 5,000,000.
Look to named members of class bringing the suit to determine completeness of diversity (for lower than 5,000,000).
SMJ – Diversity – Citizenship of corporations
Corporations are citizens of the state(s) in which they are incorporated and the state(s) in which they have their principal place of business (nerve center, usually where high ranking officers make important decisions).
Same for foreign corporations.
Date of determinations – time action is filed.
Insurer exception – insurer is a citizen of the state where its client is a citizen.
SMJ – Diversity – Citizenship of partnerships or unincorporated businesses
For partnerships, each state where a partner is domiciled.
Unincorporated business may be considered only citizens of the states where representative parties are domiciled.
SMJ – Diversity – Destroying or creating diversity (4)
Assignment – When legitimate assignment, look to assignee for citizenship (must not be collusive assignment)
Party may not manufacture diversity by failing to name/join indispensable party
Voluntarily moving to create new domicile to manufacture diversity is not allowed.
Substitution (death) – new party doesn’t need to satisfy diversity
Replacement (wrong party) – new party must be diverse
SMJ – Diversity – Amount in controversy
Sum/value of claim must exceed $75,000 (attorney’s fees count if recoverable by contract/statute). For injunctive relief, court looks to harm to P and cost to D, either one can satisfy.
Date of determination – Time of action, or if removal, then time of removal.
Burden of proof – Good faith is enough as long as its not near legal certainty that amount is not recoverable. Reduction afterwards doesn’t destroy diversity.
SMJ – Diversity – Amount in controversy aggregation
1 P versus 1D: Aggregate P’s claims
Multiple Ps, same claims: Aggregate claims
Multiple Ps, different claims: No aggregation
1 P versus multiple Ds: Aggregate of same claim or if Ds are jointly liable, no aggregation for different claims
Class actions: No aggregation, if any member has a claim less than $75,000 then no diversity
