What are the 3 types of subject-matter jurisdiction?
- Federal Question Jurisdiction
- Diversity Jurisdiction
- Supplemental Jurisdiction
Define:
federal question jurisdiction
Jurisdiction for any claims “arising under” the Constitution, federal law, or United States treaties
Elements of federal question jurisdiction
- There is a federal question in dispute; and
- Question appears on the face of a well-pleaded complaint
More info: Federal Question Jurisdiction
What is the well-pleaded complaint rule?
(also known as the Mottley Rule)
P must state that D has already violated a federal law on the face of the complaint to qualify as federal question jurisdiction. Federal question cannot be asserted as a defense (by P or D) - the federal question issue must be asserted by P on the face of the complaint.
⚠️ Note: P can’t anticipate that D will violate a federal question in the future; the violation must have already occurred to satisfy the well-pleaded complaint rule.
What is diversity jurisdiction and when does it exist?
Jurisdiction based on the citizenship of the plaintiff and defendant.
Exists when:
- There is complete diversity between parties (no party is a citizen of the same state as the other party); and
- Amount in controversy is greater than $75,000
How is citizenship for diversity jurisdiction determined for:
- Persons?
- Corporations?
- Persons: citizen of the state in which they are domiciled (i.e. where they currently reside and intend to remain indefinitely). Only one domicile allowed.
- Corporations: citizen of the state where the company is incorporated and/or maintains its principal place of business. Can be domiciled in more than one state.
Where is a corporation’s principal place of business?
The place where the corporation’s high-level officers direct, control, and coordinate the corporation’s activities, i.e. “the brain/nerve center.” Typically the corporate headquarters.
True or False: In a suit between a party and a corporation, the party must be diverse from both the corporation’s place of incorporation and principal place of business to satisfy the requirements for diversity jurisdiction.
True. Complete diversity between the place of incorporation and principal place of business must exist to satisfy diversity.
An unincorporated association is a citizen of which state?
28 U.S.C. § 1332(c). The Supreme Court holds that an unincorporated legal entity is a citizen of every State in which any of its members are citizens
When is complete diversity not required for diversity jurisdiction?
In class actions when:
- There are more than 100 members in P’s class;
- The amount in controversy is greater than $5 million; and
- Any individual member of the class is diverse from any individual D
Do damages of $75,000 satisfy the amount in controversy?
No, must be greater than $75,000.
Can a plaintiff aggregate claims to satisfy the amount in controversy when there is:
- One plaintiff, one defendant
- Multiple plaintiffs, one defendant
- Multiple defendants, one plaintiff
- One plaintiff, one defendant: Yes
- Multiple plaintiffs, one defendant: Yes, if common or undivided interest
- Multiple defendants, one plaintiff: No
Is diversity reevaluated when a complaint is amended?
Yes, reevaluated at the time of the amendment.
How is diversity jurisdiction satisfied if the suit involves the death of 75 or more people?
- D lives in one state and a substantial part of the accident took place in another state
- Any two Ds reside in different States, regardless of whether such defendants are also residents of the same State or States
- Substantial parts of the accident took place in different States
Define:
supplemental jurisdiction
Power for courts to hear a claim that does not have SMJ as long as the claim is substantially related to one for which SMJ does exist.
If the court has federal question jurisdiction, how do you determine whether supplemental jurisdiction exists?
Ask: Do the claims arise from the same transaction or occurrence? (i.e. share a “common nucleus of operative fact”?)
If yes, supplemental jurisdiction likely exists.
If the anchor claim is based on diversity, how do you determine whether supplemental jurisdiction exists?
Ask:
- Do the claims arise out of the same transaction or occurrence?
If yes, proceed to question two: - Is P bringing the claim in order to bring in a new party pursuant to FRCP 14 (third-party plaintiff), 19 (mandatory joinder), 20 (permissive joinder), or 24 (intervention)?
If yes, proceed to question three: - Will the new party’s presence in the lawsuit maintain diversity jurisdiction? (i.e. not destroy diversity jurisdiction)
If yes, then supplemental jurisdiction exists.
⚠️ Remember, this exception only applies when P brings a claim that would add the new party to the suit. The rule exists to prevent P’s from skirting the requirements of diversity jurisdiction by joining parties not originally named in the action.
In what circumstances may a court decide not to exercise supplemental jurisdiction, even if the requirements are otherwise met?
When:
- Claim raises a novel or complex issue of state law;
- State law claim substantially predominates;
- District court has dismissed all other claims over which it has original jurisdiction; or
- In exceptional circumstances, if there are other compelling reasons for declining jurisdiction
Define
removal jurisdiction
Allows federal courts to hear cases that are removed from state court to federal court in the same district where the suit is pending.
When can a case be removed? (generally)
When P could have filed original complaint in federal court.
⚠️ Federal court must have federal question, diversity, or supplemental jurisdiction over all claims
Hypo: P files complaint based on state law. D files answer asserting federal question and seeks to remove to federal court. Should removal be allowed?
No, because of the well-pleaded complaint rule. Federal question jurisdiction cannot be based on the answer - must be asserted on the face of the complaint.
Which parties can seek to remove a case?
Defendants only. P’s can never seek to remove, even if the D’s filed a counterclaim.
When is removal based on diversity jurisidiction allowed?
- D is not a citizen of the state in which the action was filed;
- It is less than a year after filing; and
- Diversity existed at the time of filing and when the notice for removal was filed (unless P dismissed the party who would have destroyed diversity jurisdiction)
- Amount in controversy exceeds $75,000 (you may remove for injunction relief in some cases)
What are the special requirements for removal based on federal question?
The well-pleaded complaint rule must be satisfied (i.e. the federal question must be presented on the face of the original complaint).
What is the rule for removal when there are multiple D’s?
All D’s must agree to removal, or else case must remain in state court.
How does a D seek to remove and within what time frame?
File a notice to remove with federal court within 30 days after grounds for removal became apparent (i.e. when D was served with process).
If P sues multiple D’s, how long do the D’s have to remove?
Each D has 30 days from the date they were made aware of the grounds for removal.
What can P do if the removal was improper?
Request remand to state court.
Define
personal jurisdiction
Court’s power to exercise jurisdiction over parties or property in the case, limited by the Constitution or statute. Balances justice and fairness with individual rights.
More info: Personal Jurisdiction
What are the 3 types of PJ?
- In personam (over person)
- In rem (over property)
- Quasi-in rem (over property not involved in suit)
To satisfy due process for PJ, what two general things must exist?
- Minimum contacts with the state such that it does not offend traditional notions of fair play and substantial justice; and
- Notice
What is the minimum contacts analysis for PJ?
- Did D purposefully avail himself of the forum (such that it was foreseeable litigation could occur)?
- Did the injuries arise out of that purposeful availment; and
- Would exercise of PJ violate notions of fair play and substantial justice?
⚠️ Note: It is extremely rare for PJ to violate notions of fair play and substantial justice if D has minimum contacts with the state.
International Shoe v. State of Washington, 326 U.S. 310 (1945)
What constitutes purposeful availment?
Deliberately directing activities at the forum state (i.e. contacts are not “random,” “fortuitous,” or “attenuated”). Examples of purposeful availment include:
- Directly soliciting business from state residents
- Entering into contracts with state residents
- Agreeing to a choice of law clause for the forum state
Can purposeful availment be established even if D has no offices, property, or employees in the forum?
Yes. For example, purposeful availment can exist if D has contracted with other businesses in the state, directed advertising specifically at the state, etc.
What factors does the court balance when determining whether PJ would violate “traditional notions of fair play and substantial justice”?
- Burden on D (primary concern);
- Forum state’s interest in hearing the suit;
- P’s interest in obtaining convenient and effective relief;
- State’s interest in efficient adjudication; and
- Furtherance of social policies
Is putting a product into the stream of commerce sufficient to establish minimum contacts?
No, merely placing a product into the stream and knowing it will end up in the forum is not sufficient. D must engage in other deliberate activities in the forum (such as advertising or servicing the products).
How do you determine whether cases involving the internet/websites have minimum contacts?
Look at how much interaction the resident has with the website:
- Passive websites: no ability to transmit info, only viewable (rare for mimimum contacts to exist)
- Interactive: resident of a state inputs info into website but doesn’t enagage in transactions (further context needed to determine whether minimum contacts exist)
- Active: resident actively engages with website, completes transactions, inputs info, etc. (minimum contacts exist)
Define
specific jurisdiction
Exists when the claim is related to D’s contacts in the forum state.
Examples include:
- Committing a tortious act in a state
- Signing a contract in a state
Define
general jurisdiction
Only exists when D’s contacts with the forum state are so continuous and systematic as to render the D essentially at home.
⚠️ General jurisdiction is rare. It typically only exists for corporations in their state of incorporation or principal place of business.
Will a court have PJ over D just because D has property in the state?
No, D must still have minimum contacts for PJ to exist.
What are 3 ways a party can consent to personal jurisdiction?
- Appearance: occurs when a party appears in court without having objected to personal jurisdiction in their initial filing or appearance;
- Contract: a signed contract containing a choice of forum clause; and
- Appointment: the party is an appointed agent in the state where it is filed
If a court has PJ over D and renders a judgment, can another state seize D’s property located in that state, even if the D doesn’t have minimum contacts in that state?
Yes (quasi in rem jurisdiction)
Does a state gain PJ over a D if they are passing through to attend another judicial proceeding?
No, not if D is just passing through to attend a judicial proceeding. However, if D is present in the forum state and not just passing through, PJ can be exercised.
If D is able to establish that there was no PJ due to improper service, is D entitled to have a default judgment set aside as void?
Yes, D can seek to have the judgment vacated.
⚠️ Note: The one year statute of limitations for motion to set aside a judgment will not apply - there is no time limit.
What is required to satisfy due process when exercising PJ?
Notice (i.e. reasonably calculated steps to inform D of the action against him)
How can process be served?
In the manner either:
- Prescribed by the state court in the state where the federal suit has been filed; or
- Prescribed by the state court in the state where D will be served; or
- Specified in FRCP 4(e)(2) –>
(A) delivering a copy of the summons and of the complaint to the individual personally;
(B) leaving a copy of each at the individual’s dwelling or usual place of abode with someone of suitable age and discretion who resides there; or
(C) delivering a copy of each to an agent authorized by appointment or by law to receive service of process.
What are the acceptable methods of service specified in FRCP 4?
- Deliver the process to D himself wherever he may be;
- Leave process at D’s home with someone of suitable discretion who also lives there;
- Serve D’s registered agent;
- Mail service to D, requesting waiver (if mailed, D gets 3 extra days to respond); or
- Any other method prescribed by the state where the federal court is located
What are the methods prescribed by FRCP 4(h) for service of process for a corporation?
- Serve process to an officer;
- Serve process on a managing agent or general agent; or
- Serve process on any other agent authorized by appointment or by law to receive service (e.g. registered agent)
What documents does D need to be served with to satisfy service of process?
- A copy of the complaint; and
- A summons (must be signed by the court clerk and identify the parties, the court, & plaintiff’s attorney as well as when and where to appear)
⚠️ Note: If both the complaint & summons have not been served, process has not been completed.
Who is eligible to serve process?
Any person who is at least 18 years old and not a party to the action.
What is the deadline for service of process?
Within 90 days of filing the complaint.
What happens if P fails to timely serve process?
The court, either on motion or on its own after notice to P, must dismiss the action without prejudice or order that service be made.
⚠️ Note: If P shows good cause for the failure, the court must extend the time for service for an appropriate period.
Does failure to file proof of service affect the validity of the service?
No, although proof of service is required (unless service is waived), failure to prove service does not make the service invalid.
If new claims are filed during a lawsuit, does new process need to be served?
No, new service of process only needs to be served when a new party is been added to the lawsuit.
Can P request that D waive service?
Yes, P can request waiver by mailing D a copy of the complaint along with 2 copies of the form for waiver of process.
If D waives service, how long do they have to respond to the complaint?
60 days after the request was sent (90 days for international defendants)
⚠️ Note: If process is not waived, an answer must be filed within 21 days, absent other instruction from the court.
Does waiver of service waive D’s right to object to PJ or venue?
No.
If an action is based on duties performed on behalf of the U.S. (e.g. federal marshal), how must process be served?
Both the individual and the U.S. needs to be served.
Define
venue
Location where suit can occur (called “judicial district” in federal court)
Where is venue proper?
- District where D resides, if all D’s are residents of the state in which the district is located; or
- District where a substantial portion of events giving rise to the claim occurred; or, if none of these provide basis for venue then →
- Any district that has PJ over any D
If D’s reside in the same state, where is venue proper?
Any judicial district in which any single D resides.
If D’s reside in multiple states, where is venue proper?
- Location where a substantial part of the events occurred; or
- Location where the disputed property is located
For venue purposes, where do corporations reside?
If corporation is the defendant: any judicial district in which they are subject to personal jurisdiction.
If corporation is the plantiff: judicial district in which it maintains its principal place of business.
Where can a party transfer venue if:
- Original venue was proper?
- Original venue was improper?
- Original venue proper: As long as the new district would also have proper venue, the transfer will be granted if the new district is more convenient for the suit.
- Original venue improper: any district where venue would be proper.
If venue is transferred under 28 USC § 1404 (motion/consent of the parties, or convenience), the new court must apply the rules of which court?
The laws of the state of the transferor (original) court, including conflict of laws rules.
What is forum non conveniens?
When is it proper?
Gives courts the discretion to dismiss a suit when there is a more appropriate forum, even if venue was proper.
Proper when:
- Alternate forum exists; and
- Balance of public and private factors justify dismissal
More Info: Forum Non Conveniens
