Civil Procedure — State and Federal Courts

What is the main difference between state and federal courts?

State courts are courts of general jurisdiction, while federal courts are courts of limited jurisdiction.

What does it mean that state courts have general jurisdiction?

It means state courts generally have authority to hear a broad range of cases.

What does it mean that federal courts have limited jurisdiction?

It means federal courts may hear only cases authorized by the U.S. Constitution or federal law.

What are the two principal bases for federal subject matter jurisdiction?

Federal question jurisdiction and diversity of citizenship jurisdiction.

When does federal question jurisdiction exist?

It exists when the plaintiff’s claim arises under a federal statute, the U.S. Constitution, or a treaty.

What does it mean for a claim to “arise under” federal law?

It means federal law creates or is an essential part of the plaintiff’s claim.

What is the Well-Pleaded Complaint Rule?

The federal issue must appear in the plaintiff’s properly pleaded complaint.

Where must the federal issue appear to establish federal question jurisdiction?

It must appear in the plaintiff’s complaint.

Does a federal defense create federal question jurisdiction?

No. A federal defense does not create federal question jurisdiction.

The plaintiff files a state-law claim, but the defendant raises a federal defense. Does federal question jurisdiction exist?

No, because the federal issue does not appear in the plaintiff’s complaint.

What are the two requirements for diversity jurisdiction?

Complete diversity of citizenship and an amount in controversy exceeding $75,000.

What is complete diversity?

Complete diversity means that no plaintiff shares state citizenship with any defendant.

A plaintiff and one defendant are citizens of the same state. Is there complete diversity?

No. Complete diversity is destroyed if any plaintiff shares state citizenship with any defendant.

How much must the amount in controversy exceed for diversity jurisdiction?

It must exceed $75,000.

Is a claim for exactly $75,000 sufficient for diversity jurisdiction?

No. The amount must be greater than $75,000.

How is an individual’s state citizenship determined?

An individual’s citizenship is determined by domicile.

Is citizenship the same as residence for diversity purposes?

No. Citizenship is based on domicile, not merely residence.

What is required to establish a new domicile?

Physical presence in the new state and intent to remain there permanently or indefinitely.

Is physical presence alone sufficient to change domicile?

No. The person must also intend to remain in the new state.

Is an intention to move to a state sufficient without physical presence?

No. Both physical presence and intent to remain are required.

When is domicile determined for diversity jurisdiction?

Domicile is determined when the lawsuit is filed.

Does a party’s change of domicile after the lawsuit is filed affect diversity jurisdiction?

Generally, no. Citizenship is determined at the time the lawsuit is filed.

What must the plaintiff allege regarding the amount in controversy?

The plaintiff must make a good-faith allegation that the amount exceeds $75,000.

What should be considered when calculating the amount in controversy?

The plaintiff’s potential damages should be considered.

Are defenses considered when calculating the plaintiff’s amount in controversy?

No. Defenses are ignored.

Are counterclaims considered when calculating the plaintiff’s amount in controversy?

No. Counterclaims are ignored when calculating the amount of the plaintiff’s claim.

The plaintiff alleges damages exceeding $75,000 in good faith but ultimately recovers less. Is diversity jurisdiction destroyed?

No. A later recovery below $75,000 does not retroactively destroy jurisdiction.

Why does a recovery below $75,000 not destroy jurisdiction?

Because subject matter jurisdiction is assessed based on the circumstances existing when the lawsuit is filed.

What is supplemental jurisdiction?

Supplemental jurisdiction allows a federal court to hear a related state-law claim that lacks its own independent basis for federal jurisdiction.

What is the test for supplemental jurisdiction?

The claims must share a common nucleus of operative fact.

What does “common nucleus of operative fact” usually mean?

It usually means the claims arise from the same transaction or occurrence.

Must a supplemental claim independently satisfy federal question or diversity jurisdiction?

No. Supplemental jurisdiction allows certain related claims that lack their own independent basis for federal jurisdiction.

Can original plaintiffs in a pure diversity case freely use supplemental jurisdiction to avoid the diversity requirements?

No. Original plaintiffs in pure diversity cases generally face important restrictions and cannot use supplemental jurisdiction to circumvent the requirements of diversity jurisdiction.

What is removal?

Removal is the transfer of a case from state court to federal court.

Who may remove a case from state court to federal court?

Only the defendant or defendants may remove.

May the plaintiff remove the case to federal court?

No. Only defendants may remove.

What must happen when multiple served defendants want to remove a case?

All properly served defendants must join or consent to removal.

What jurisdictional requirement must exist for removal?

The federal court must have subject matter jurisdiction over the case.

Can a defendant remove a case if the federal court would lack subject matter jurisdiction?

No. Removal requires a valid basis for federal subject matter jurisdiction.

What is remand?

Remand is the process of sending a removed case back to state court.

What may the plaintiff do if removal was improper?

The plaintiff may seek to have the case remanded to state court.

What is the difference between removal and remand?

Removal transfers a case from state court to federal court. Remand sends it back to state court.

What fundamental question does subject matter jurisdiction answer?

Can this case be heard in federal court?

What fundamental question does venue answer?

Which federal court is the proper geographic location for the case?

What is the simplest distinction between subject matter jurisdiction and venue?

Subject matter jurisdiction determines whether the case may be in federal court; venue determines where within the federal court system it should be heard.