Outline - Civil Procedure - III - Subject Matter Jurisdiction

Civil Procedure (2005-2006)

III. SUBJECT MATTER JURISDICTION

SMJ is not waivable.

1. State Courts - General Jurisdiction vs. Limited Jurisdiction
   1. State - General Jurisdiction (criminal, civil/tort, family/probate)
   2. Federal - Limited Jurisdiction
2. Federal Question
   1. Subjects
      1. U.S. Constitution, Article III, Section 2
         1. Admiralty
         2. U.S. is a party
         3. Treaties
      2. Federal laws (e.g., anti-trust, patent, copyright, bankruptcy)
   2. Created by U.S.C. § 1331
   3. Well-pleaded complaint - Plaintiff may not anticipate federal question in defense or counterclaim. [Mottley – Anticipating federal question defense from defendant railroad corrupted complaint.]
3. Diversity
   1. Complete Diversity
      1. All plaintiffs diverse from all defendants unless statutory or decisional exception.
      2. Citizenship
         1. U.S. citizen – Primary permanent domicile, with intent to return [Mas v. Perry, Tanzymore]
         2. Permanent Resident alien – State where domiciled [Mas v. Perry]
         3. Corporation – Where incorporated and principal place of business
         4. Partnership/LLC – Where partners/members are citizens [Belleville]
         5. Normal class action – Where class representative plaintiffs are citizens
         6. Mass class action – Where any member is citizen (minimal diversity)
         7. Executor – Where deceased was citizen
         8. Insurer – If insured not defendant, where insured is citizen, and where insurer incorporated and principal place of business

         Cannot change citizenship after filing by moving or by changes in membership for partnership [Dataflux]

   2. Amount in Controversy > $75,000
      1. "Exclusive of interests and costs" [28 U.S.C. §§ 1332(a), 1332(d)(6)]
         1. American rule – Each side pays its own costs
         2. Civil rights exceptions
         3. Winners awarded costs (but not attorney’s fees)
      2. "Legal certainty" at time filed/removed [Red Cab - Subsequent events reducing amount below statutory limit do not oust jurisdiction]
         1. Plaintiff cannot reduce amount to take away right of defendant to remove to federal court
         2. Good faith representation
      3. Injunctive Relief
         1. Value to plaintiff;
         2. Value to defendant; or
         3. Either viewpoint [McCarty v. Amoco]
      4. Aggregation
         1. One plaintiff can sum all claims against one defendant
         2. One plaintiff cannot sum claims against separate defendants
         3. Multiple plaintiffs cannot sum separate and distinct individual claims
         4. Exception for mass class action (>$5 million) [§ 1332(d)]
4. Supplemental Jurisdiction
   1. Facts that would be presented would be the same on both the state and federal levels.
   2. State law to be applied.
   3. Federal court can decline to have jurisdiction over a novel state claim.
5. Removal
   1. What - Notice of removal automatically removes entire case; in federal question case, court may remand claims in state law [§ 1441(c)]
   2. Where - Federal District and Division embracing state court [§ 1441(a)]
   3. Who - All defendants must join unless separate federal question; except for federal question, may remove only if no defendant resides in state [§ 1441(b)]
   4. When [§ 1446(b)]
      1. Within 30 days of formal receipt of complaint or of first later paper showing removability; and
      2. No later than 1 year after action for diversity SMJ begins
   5. Why - Federal questions, diversity, or other SMJ exists in federal court.
   6. Improper removal not fatal if jurisdictional requirements satisfied at time of judgment [Caterpillar]
   7. Artful pleading - Plaintiff may not avoid SMJ by omitting federal questions from plea.
6. Remand
   1. Where - Back to state court case came from [§ 1447(d)]
   2. Who - Any party or sua sponte
   3. When [§ 1447(c)]
      1. Lack of SMJ
      2. Upon joinder of nondiverse defendants
      3. Within 30 days of removal for any other reason
   4. Why
   5. Joinder of nondiverse defendants granted [§ 1447(e)];
   6. State law predominates (discretionary);
   7. Error in removal; or
   8. No SMJ in federal court