Supplemental jurisdiction Flashcards
May lack of diversity be cured by supplemental jurisdiction?
Diversity jurisdiction requires complete diversity, no one plaintiff may be a citizen of the same state as any defendant.
A plaintiff, generally, cannot use supplemental jurisdiction to overcome a lack of diversity in a diversity case but a Defendant may through impleader.
What are the requirements for permissive and compulsory counter claims?
Under the FRCP, Rule 13 provides for both permissive and compulsory counterclaims. Rule 13(b) allows assertion as a counterclaim at the defendant’s discretion of “any claim that is not compulsory.” No claim is too far removed from the subject of the plaintiff’s claim to be allowed as a counterclaim. A counterclaim is only compulsory if arose out the same transaction or occurrence as the plaintiff’s claim. In order to be brought, the claim must have an independent jurisdictional basis and must meet the jurisdictional amount requirement.
C is correct. Here, the corporation has properly pled a permissive counterclaim, however, the State B federal court does not have jurisdiction over it because there is neither diversity nor supplemental jurisdiction. There is no diversity jurisdiction because the state wrongful conversion claim does not meet the $75,000 amount in controversy requirement. There is no supplemental jurisdiction because the counterclaim is not so related to claim in the action within such original jurisdiction that they form part of the same case or controversy.
A is incorrect. Although cross-claims are subject to this limitation, the federal rules allow permissive counterclaims which need not bear any relationship to the subject-matter of the original action.
B is incorrect. Although the Federal Rules of Civil Procedure permit permissive counterclaims, this alone does not defeat Plaintiff’s motion to dismiss. The claim still must have an independent jurisdictional basis and must meet the jurisdictional amount requirement.
D is incorrect. Supplemental jurisdiction is a way for federal courts to hear claims for which they would not ordinarily have jurisdiction. Supplemental jurisdiction only exists in the situation where a lawsuit consists of more than one claim, and the federal court has valid jurisdiction (either diversity jurisdiction or federal question jurisdiction) over at least one of the claims. There is no supplemental jurisdiction because the counterclaim is not so related to claim in the action within such original jurisdiction that they form part of the same case or controversy.
