Civ Pro SMJ

Types of SMJ for Federal Courts

Federal Question, Diversity of Citizenship, and Supplemental

Types of SMJ for State Courts

State courts can hear almost any case arising under federal law, except for patent infringement, bankruptcy, some securities cases, and antitrust claims

Waiver of SMJ

SMJ cannot be waived. If a court without SMJ hears the case, the resulting judgment is void

Diversity of Citizenship Requirements

The case is either between citizens of different US states (diversity) or between a citizen of a US state and a citizen of a foreign country (alienage); AND the amount in controversy exceeds $75,000

Complete Diversity Rule

Diversity of citizenship SMJ does not exist if ANY plaintiff is a citizen of the same state as ANY defendant at the time when the case is filed

Citizenship of a natural person

The citizenship of a US citizen is in the one US state where that person is domiciled

Establishing a New Domicile

Requires physical presence in the new domicile and the intent to make that place home for the foreseeable future. For intent, look at all relevant factors

Citizenship of a corporation

A corporation is a citizen of any state in which it is incorporated and of the one state in which it has its Principal Place of Business, the “nerve center” of the corporation. (Usually HQ)

Citizenship of an Unincorporated Association

An unincorporated association such as a partnership takes on the citizenship of all of its members. For a limited partnership, the citizenship of general AND limited partners are included.

Citizenship of Minors, Decedents, or Incompetent People

Must be sued through a representative, but the citizenship of the decedent, minor, or incompetent counts, not the citizenship of the representative

Class Action Citizenship

The citizenship of the named representatives of the class is used

Amount in Controversy

Must be greater than $75,000 (exactly 75k doesn’t count). Can be calculated as the sum of all of P’s claims, but litigation costs or interest on the claim are not considered

Aggregation of P’s Claims for Amount in Controversy

Can aggregate all claims from any single plaintiff against a single defendant, regardless of whether the claims are related to each other. Can aggregate claims of two or more separate people so long as the controversy concerns a common and undivided interest like a joint ownership of the same property or the same conduct by the same employer.

Amount in Controversy and Equitable Relief

To determine amount in controversy when P requests equitable relief, a court will look at whether the requested relief has a value of more than $75k for the Plaintiff or if the relief requested will cost the defendant more than 75k

Exclusions from Diversity Jurisdiction

Even if the requirements are otherwise met, federal courts decline to hear actions for divorce, alimony, child custody, and probate actions

Collusive Creation of Diversity

A court can declare diversity does not exist if a party attempts to create diversity by a sham transaction, such as assigning a claim for collection purposes merely to create SMJ.

Voluntary changes of citizenship

A plaintiff can create diversity by changing her state citizenship after the cause of action accrued but before suit is commenced so long as the change in citizenship is genuine.

Federal Question Jurisdiction

The plaintiff’s claim must “arise under” federal law or the federal constitution. This is examined by looking at the claim only, not anticipated defenses or counterclaims

SMJ Removal Generally

If P sues D in state court but D would prefer federal court, D can remove the case to federal court. If removal was improper, the federal court can remand the case to state court. The case must have federal jurisdiction, and it does not matter if the state court had no jurisdiction over the claim originally.

Removing a Case

Defendant files a notice of removal in federal court, stating grounds of removal (FQ or diversity). Permission of the state or federal court is not required. D must attach all documents served in the state action, and promptly serve a copy of the notice of removal on adverse parties and with the state court

Timing of Removal

D must remove a case to federal court no later than 30 days after service of the first paper that shows the case is removable (usually service of process)

Joining in Removal

All defendants who have been served with process must join in removal, but need not do so in the same document. If Ds are served at different times and a later-served D files for removal, earlier-served Ds can join even if their 30-day period for removal has already expired

Removal by Plaintiffs

Plaintiffs can never remove a case to federal court, even if D files a counterclaim that by itself could be heard in federal court.Lm

Limitations on Removal

For diversity-based removal, the case should not be removed if any defendant is a citizen of the forum state (in-state defendant rule), and a case should not be removed more than one year after it is filed in state court.

Removal One-Year Limitation Quirks

A case can become removable under diversity jurisdiction if the in-state defendant or non-diverse defendant is voluntarily dismissed from the case. The other defendants have 30 days to remove, unless the dismissal occurs after the one year limit. If so, Ds can only remove if they can show that P joined the dismissed D in order to prevent removal.

Removal Venue

The case is removed to the federal district court “embracing” the state court where the case was filed, regardless of whether this venue would have been proper under the venue statutes

Remand to State Court

P can move to remand a case to state court. If this motion is based on a reason other than a lack of SMJ, P must move to remand no later than 30 days after the filing of the notice of removal. P waives this right if P fails to make the motion within this time. If removal was improper because the court lacked SMJ, then there is no time limit on moving to remand.

Supplemental Jurisdiction

Supplemental Jurisdiction allows a federal court to have SMJ where it otherwise wouldn’t so long as there is an independent basis for the suit as a whole to be in federal court

Number of Additional Claims required

A federal court must have SMJ over every claim in a case

Test for Supplemental Jx

The claim for which supplemental Jx is sought must share a common nucleus of operative fact with the claim that initially satisfied SMJ. There is always a common nucleus of operative fact if a claim arises out of the same transaction or occurrence as the federal SMJ claim.

Supplemental Jx and Diversity

Supplemental Jx statute excludes certain claims that meet the common nucleus test if the case was in court based on diversity Jx. Generally, claims by the plaintiff in diversity cases cannot invoke supplemental Jx. This limitation does not apply if there are multiple plaintiffs and at least one of the claims satisfies the amount in controversy requirement.

Discretionary Factors

A court can decline to exercise supplemental jurisdiction if the state law claim is novel/complex, the state law issue would predominate the case, or if the claim on which federal SMJ is based was dismissed early in the case