Venue and Eerie Flashcards
Removal
Generally, the defendant in any civil action filed in state court has the right to remove it to the district court for the district in which the state court action was filed as long as the civil action is within the original jurisdiction of a U.S. district court. Federal courts may exercise original diversity jurisdiction over actions concerning a question of federal law (must be facially alleged in the complaint), or when (i) the parties to an action are citizens of different states and (ii) the amount in controversy in the action exceeds $75,000. Generally, a plaintiff’s good-faith assertion in the complaint that the action satisfies the amount-in-controversy requirement is sufficient, unless it appears to a legal certainty that the plaintiff cannot recover the amount alleged.
Forum Selection Clause in violation of State Law
For the convenience of the parties and in the interests of justice, a district court may transfer any civil action to any other district or division where it might have been brought. Venue is proper in a judicial district in which any defendant resides or in a judicial district in which a substantial part of the events or omissions on which the claim is based occurred. Moreover, when transfer is sought on the basis of a forum selection clause in a contract, the clause is accorded respect. If the clause specifies a federal forum, most circuit courts treat the clause as prima facie valid, to be set aside only upon a strong showing that transfer would be unreasonable and unjust or that the clause was invalid for reasons such as fraud or overreaching. Furthermore, the Supreme Court held that a forum selection clause should be given “controlling weight in all but the most exceptional cases,” even if the clause is unenforceable under applicable state law.
Conflicting Laws between Transferee Court and Transferor Court
Generally, if the venue of an action is transferred when the original venue is proper (as discussed above), the court to which the action is transferred must apply the law of the state of the transferor court, including that state’s rules regarding conflict of law. However, when venue is transferred based on a valid forum selection clause, the transferee court must apply the law, including the choice-of-law rules, of the state in which it is located. The transferee court should not apply the law of the transferor court because the parties have contractually waived their right to the application of that law by agreeing to be subject to the laws of the transferee venue.
Applicable Law in Federal Court
A federal court sitting in diversity must apply the substantive law of the state in which it sits, including that state’s choice-of-law rules.
Choice of Law Provisions
If there is an express choice-of-law provision in the contract, then that law will generally govern unless there is no significant basis for the parties’ choice or it is contrary to public policy.
Different pleading requirements between the State and Federal Rules
If there is a valid federal rule of procedure on point, then the court must determine whether the rule is valid under the Rules Enabling Act. Specifically, the court must ask whether the Federal Rule abridges, enlarges, or modifies any substantive right. Pursuant to this act, the Federal Rules of Civil Procedure have been created, and apply to all civil actions and proceedings in federal court, including actions that raise state law claims. Under Rule 8(a), a complaint (or any pleading in which a claim is made) must include a short and plain statement of the claim establishing entitlement to relief. There are no special pleading rules for a defamation case under the Federal Rules. Thus, Rule 8(a) generally applies to any claim brought in federal court and will prevail over any state-law pleading rules.
Determining proper Venue
Venue concerns which court among the courts having PJ and SMJ is the proper forum for hearing the matter. In general, venue in a federal civil action is only proper: (i) where any defendant resides, if all defendants reside in the same state, or (ii) where a substantial part of the events on which the claim is based occurred. If there is otherwise no judicial district in which a claim may be brought, venue may be proper in a judicial district in which the defendant is subject to PJ.
