Civ Pro through Removal

LAW SCHOOL Bar Prep

Subject Matter Jurisdiction

Subject Matter Jurisdiction

Whether a court has jurisdiction to hear and determine cases of the general class and subject

Concurrent/exclusive jurisdiction

State courts and federal courts have concurrent JX of FQ claims, except when Congress expressly provides that JX of the federal courts is exclusive.

FQ JX Express and Implied

FQ exists if the cause of action in question is expressly created by federal law and federal law provides the underlying right.

FQ is likely to be found if the right is created by federal law, and a cause of action can be fairly implied and was intended by Congress.

Federal Question with state law claim

A state law claim with a federal issue that is

1. necessarily raised

2. actually disputed

3. substantial and

4. capable of resolution in federal court without disrupting the federal-state balance approved by Congress

Federal Question Jurisdiction

The plaintiff’s claim must be based on federal law. Only the P’s claims count for determining federal question jurisdiction. Plaintiff does not need to anticipate or plead a response to a defense.

A federal defense does not count for Federal question jurisdiction, even if it is important.

Personal Jurisdiction

Personal jurisdiction refers to the ability of a court to exercise power over a particular D or item of property.

• In personam

• In rem

• Quasi-in rem

Domicile for Individual

• State in which an individual is present and intends to reside indefinitely

• Can only have one domicile at a time

• Domicile is determined at the time the action is commenced

Domicile for Corporation

Citizenship is state of incorporation and state where it has its principal place of business (“nerve center” from which the high-level officers direct, control, and coordinate the activities of the corporation.)

Standard of proof for determination of AIC

Plaintiff’s good-faith assertion is sufficient unless there is LEGAL CERTAINTY that P cannot recover alleged amount.

Aggregation of claims

Permitted for

• single P against single D

• multiple Ps with common or undivided interests

Counterclaims generally not counted in determining whether P has met amount.

Permissive counterclaim must meet jurisdictional amount requirement.

Compulsory counterclaim does not need to meet jurisdictional amount requirement.

Aggregation for multiple Ds

One P can aggregate all of her claims against multiple Ds IF the Ds are JOINTLY LIABLE.

Subject Matter Jurisdiction

The subject matter jurisdiction of the federal courts is limited to that authorized by the Constitution as implemented by federal statute and decisional law.

Types of SMJ of the federal courts

1. Diversity of Citizenship

2. Federal Question Jurisdiction

3. Removal Jurisdiction

4. Supplemental Jurisdiction

Citizenship for Unincorporated Associations and Partnerships

E.g., Unions, trade associations, partnerships, and limited partnerships

These are considered a citizen of every state of which its members are citizens.

Complete Diversity

Every citizenship represented on the plaintiff’s side of the case must be different than every citizenship represented on the defendant’s side of the case. The amount in controversy must exceed $75,000.

Determining AIC for Diversity

for claim of Injunctive Relief

A claim for injunctive relief may be valued by the benefit to the plaintiff or the cost to the D for compliance.

4 types of diverse parties

1. Citizens of different states

2. Citizens of a state and citizens/ subjects of a foreign state

3. Citizens of different states and citizens of citizens/subjects of a foreign state are additional parties

4. A foreign state as plaintiff and citizens of a state or different states

Suit against a Foreign State

A suit may not be brought in fed. or state court against a foreign state, including a political subdivision or agency or instrumentality of a foreign state.

Exceptions:

• Engaging in a commercial activity

• committing a tort in the United States

• Seizing property in violation of international law.

But a foreign state may sue one or more citizens of one or more U.S. states in federal court.

Federal Question Jurisdiction

The federal district courts shall have original jurisdiction of all civil actions arising under the U.S. Constitution, federal statutes, federal administrative regulations, and U.S. treaties.

Removal Requirements

Removal allows the D to move a case from state court to federal court if the case could have been brought originally in federal court. Removal must be sought by:

1. The D, and

2. Within 30 days of learning the grounds for removal (however, the D can’t remove his case after one year from the commencement of the action, unless the P acted in bad faith to try to make the case non-removable.

Removal for Federal Question Cases

The D may remove the case to federal court if the well-pleaded complaint discloses that the claim is based on federal law

Removal for Diversity Cases

The Defendant may remove the case to federal court if:

1. Complete diversity exists;

2. The AIC exceeds $75,000

3. The action is brought in a state of which no D is a citizen.

Supplemental Jurisdiction

Supplemental jurisdiction allows a federal court to entertain certain claims over which it would have no independent basis of subject matter jurisdiction, that is claims that do not satisfy diversity of federal question jurisdiction.

Supplemental Jurisdiction for Federal Question Cases

A federal court sitting in federal question jx may hear a pendent state law claim under supplemental jurisdiction if the state law claim arises out of the same transaction or occurrence as the federal law claim. `

Venue

Venue is the designation of the proper geographic district in which to bring an action.

Subject matter jurisdiction under Class Action Fairness Act (CAFA)

• Class contains 100 or MORE members

• At least one class member and ONE D are diverse and

  • AIC for aggregated claims exceeds $5 million

Collateral estoppel (issue preclusion)

Precludes the relitigation of an issue that was actually litigate, determined, and essential to a valid final judgment on the merits. Two types

• Mutual

  • Non-mutual

Final Judgment Rule

If a decision fully resolves the merits of a dispute, leaving nothing but enforcement, then an appeal is allowed.

Exceptions to Final Judgment Rule

Decision does not fully resolve the merits of dispute.

If one of the exception applies then an appeal is allowed:

• Injunction (grant/denial)

• Certification by district court

• Class action certification

• Appointment of receiver

• Admiralty cases

• Collateral-order doctrine

• Bankruptcy cases (certain orders)

• Mandamus (petition for writ)

• Patent-infringement order (accounting left)

In Certain Circumstances, An Appeal Can Be Made Prematurely

Counterclaim

If a D has a claim against the P, then the D may state it as a counterclaim in the answer to the complaint.

Cross-Claim

A cross-claim is a claim filed by a P against another P or by a D against a co-defendant. A federal court sitting in diversity jurisdiction has supplemental jurisdiction over a cross-claim if the cross-claim arises out of the same transaction or occurrence as the original claim.

Compulsory Counterclaim

Counterclaim is compulsory and MUST BE asserted in the defendant’s answer if it:

• arises from the same transaction or occurrence as the P’s claim(s) AND

• does not require adding parties over whom the court cannot acquire jurisdiction

Permissive Counterclaim

A permissive counterclaim does NOT arise out of the same transaction or occurrence as the original claim filed. It can only be heard if it independently satisfies diversity jurisdiction.

Claim Preclusion (res judicata)

The doctrine of claim preclusion prohibits identical parties from relitigating a claim after any court enters a valid final judgment on the merits on an identical claim. Claims are identical if:

• arise from the same transaction, occurrence, or series thereof and

  • could have been raised in the first action because the second claim existed and could have been joined to the first action.

Removal Jurisdiction

D may generally remove case from state court to federal district court having SMJ

• Removal must be to the district court for the district and division in which the state court action is pending.

• Removal to the WRONG district court is subject to a motion to remand (or transfer to the proper federal court)

FQ claims and Removal

Permissive counterclaims

If FQ claims are joined with claims that aren’t independently removable, entire case may be removed.

Notice of Removal

• D must file notice within 30 days after receipt by or service on the D of the initial pleading.

• FQ-only Ds against whom federal claim is filed must consent or join in removal.

Remand

If there is a lack of SMJ found any time before final judgment is rendered. A motion to remand for any defect other than SMJ must be filed within 30 days after filing of notice of removal.