Subject Matter Jurisdiction (SMJ)

what is SMJ?

power for the court to hear the subject matter of a case

what are the two types of SMJ?

federal question jurisdiction (1331)

diversity jurisdiction (1332)

what is federal question jurisdiction?

a claim that arises under a federal question

what is diversity jurisdiction

a claim that involves two parties from different states

what happens if a party has either type of SMJ

can bring a claim in federal court under SMJ

what is exclusive SMJ

case can only be heard by one system (typically just federal court)

what is concurrent SMJ

case can be heard in either state or federal court (plaintiff has option/choice where to file)

what are the 2 requirements of federal question (1331) jurisdiction?

well pleaded complaint (WPC)

centrality

what is a WPC?

claim itself (and not an anticipated defense) must arise under federal law

why is centrality important to a federal question

must assess how central the federal law is to plaintiff’s claim

also must assess how necessary the federal law is to the claim

what are the 2 ways centrality can be met?

federally created claim (creation test)

substantial federal issue

what is the creation test?

the question of federal law creates the claim

when is the creation test not met?

congress passes a statute barring certain conduct

federal statute only permits gov entity to sue not a private person

when does SMJ exist if the claim is a state law claim that depends on the resolution of substantial federal issue and policy

Apply the Grable test

what is the Grable test

is the federal question…

• necessarily raised by state law claim and

• actually disputed (contested law)

• substantial (meaning would the entire federal system benefit from having this claim in federal forum)

• and will hearing this type of case in federal court not disrupt the fed/state balance of judicial responsibilities

what is diversity jurisdiction (1332)?

covers claims between parties who are US citizens from diverse/different states

2 types of diversity

complete and minimal

what is minimal diversity

when any party has a different state citizenship from any one party on the opposing side (ex: plaintiff from CA v defendant from PA + defendant from CA)

what is complete diversity

when all plaintiffs are different states from all defendants (ex: plaintiff from CA v defendant from PA + defendant from NJ)

what is required for diversity jurisdiction to be met under article 3

minimal diversity only

NO NEED for amount of controversy

what is required for diversity jurisdiction to be met under 1332 statute?

complete diversity

amount of controversy (exceeding $75k)

what are the special cases in regards to diversity

corporations

un-incorporated entities

legal representatives

foreign citizenship

where is a corporation’s citizenship found?

determined by where corporation was born and where it conducts its principal place of business

what is the nerve center test?

used to determine a corporations citizenship

typically the state where the corporate officers direct and control activity (often location of headquarters)

where is the citizenship of un-incorporated entity

in the states of citizenship of the members that comprise the entity

what is the citizenship of a legal representative (like one for a minor child or decedent)

representatives citizenship is deemed to be the citizenship of the person being represented if it is not already the citizenship of the representative

foreign citizenship

generally treated the same EXCEPT in cases between citizens of a state and those who are permitted permanent residency and is domiciled in same state as US citizen

what is the amount in controversy (AIC) requirement?

claim for recovery must EXCEED $75k (unless otherwise stated in state statute)

what does supplemental jurisdiction (aka pendant jurisdiction) do

allows a party to bring a claim to federal court without federal SMJ if it is sufficiently related to another claim in the same case that is already properly in federal court

what is the basic test for supp jurisdiction

1. find an anchor federal claim

2. find state claim you want to exercise supp SMJ over

3. check that both claims are “so related” they form part of same case or controversy under article 3 (CNOF test)

what is common nucleus of fact (CNOF) test?

are the same facts needed to prove both claims

what would bar supp SMJ?

• if supp SMJ would destroy diversity of a claim

• if plaintiff is attempting to use supp to defeat diversity (original defendants NEVER barred)

• assure the claim is founded on diversity SMJ

• assure uninvited plaintiffs under rule 19 are not attempting to implement supp SMJ

what is the purpose of removal?

allow the defendant the ability to move a case from state court to federal court

what is the basic test for removal (28 USC 1441)

any claim brought in a state court which has original jurisdiction, MAY be removed by defendant or defendants to district courts of the district or division where the action is pending

is removal necessary?

no, optional. if a defendant doesn’t remove a case to federal court then it shall remain in state court

what happens when there are multiple defendants and one wishes to remove the case?

must get consent for removal from all defendants who have been PROPERLY joined and served

what are the restrictions on where defendant can move case to?

defendant can only remove case to district that covers the location where the state claim was filed (if that district has multiple division then the defendant must file in the division that includes the location of that specific state court)

what is the in-state defendant bar?

a case is barred from removal when the case is based SOLELY on diversity SMJ

what is the purpose of the in-state bar

prevent bias against “out-of-staters”