Subject Matter Jurisdiction

What core question does SMJ ask?

Which court/can we go to federal court?

What courts have General SMJ?

State Courts. They can hear almost any type of case.

What courts have Limited Subject Matter Jurisdiction?

Federal Courts

Describe the avenues of going to Federal Court.

Method 1: Diversity of Citizenship (1332(a)(1) Always on Exams

Requirement 1:

a1: Citizens of different states. No state shall be on both sides of the aisle.

1332(a)(2): SOLE FOREIGN PARTY: If a foreign national, diversity. If they have residency (determined by PPB) in your state, no diversity.

1332(a)(3): MULTIPLE PARTIES, ONE FOREIGN PARTY: Foreign additional parties with officers in Plaintiff’s state, there is still diversity.

What’s a citizen?

For Humans:

Domiciled

For Corporations:

PPB (nerve center test)

State of incorporation.

For Non-Incorporated (LLCs):

Citizenship of ALL the members ONLY.

Requirement 2:

Amount in controversy EXCEEDS $75,000.

P1 may only aggregate claims against D1, P2 against D2, etc.

Amount in controversy is determined by P’s claim UNLESS a statute limits recovery (rare).

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Method 2: Federal Question (§1331)

If the CLAIM arises out of federal law/enforce a federal RIGHT.

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Method 3: Supplemental Jurisdiction (§1367)

• Through Federal Question or Diversity, the case is already in federal court.

• Supplemental takes over and brings other state claims in the case into federal court.
  

If Case Got to Federal Court through Federal Question: Satisfy 1367(a):

• Does the claim share a common nucleus of operative fact with the claim that got the case into federal court? (e.g. P files a copyright infringement case. D punches P after P confronts D about the infringement. Common nucleus of fact).
  

If the case originally got into Federal Court through Diversity of Citizenship: Satisfy 1367(b) - A Supplemental Jurisdiction Kill Switch:

• If P adds a non-diverse Defendant, P must go to state court for the non-diverse claim.

• Otherwise Ps would create fake diversity, get into federal court, then break diversity.

• Prevents a loophole for getting into federal court.

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Method 4: Removal Jurisdiction

Gives ONLY the Defendant a choice to file to remove from state to federal court.

• D must file removal within 30 days of service of process. Countdown resets for each D served.

• ALL Ds must join on the removal.

• D shall only remove to the federal district court that geographically EMBRACES the state court where the case was filed.

P can remand back to state court if P thinks removal is improper.

EXCEPTION: In a diversity case, a defendant cannot remove if they are sued in their home state. (e.g. P files in TX court. D is in TX. D can’t remove to federal). (e.g. #2: P files in NY court. D is in TX. D can remove to federal court).

Describe Method 1 of getting into Federal Court.

Method 1: Diversity of Citizenship (1332(a)(1) Always on Exams

Requirement 1:

Citizens of different states. No state shall be on both sides of the aisle.

What’s a citizen?

For Humans:

Domiciled

For Corporations:

PPB (nerve center test)

State of incorporation.

For Non-Incorporated (LLCs):

Citizenship of ALL the members ONLY.

Requirement 2:

Amount in controversy EXCEEDS $75,000.

P1 may only aggregate claims against D1, P2 against D2, etc.

Amount in controversy is determined by P’s claim UNLESS a statute limits recovery (rare).

Describe Method 2 of getting into Federal Court.

Method 2: Federal Question (§1331)

If the CLAIM arises out of federal law/enforce a federal RIGHT.
Ingredient test.

Describe Method 3 of getting into Federal Court.

Method 3: Supplemental Jurisdiction (§1367)

• Through Federal Question or Diversity, the case is already in federal court.

• Supplemental takes over and brings other state claims in the case into federal court.

• The federal court can dismiss if they feel like it.

If Case Got to Federal Court through Federal Question: Satisfy 1367(a):

• Does the claim share a common nucleus of operative fact with the claim that got the case into federal court? (e.g. P files a copyright infringement case. D punches P after P confronts D about the infringement. Common nucleus of fact).

If the case originally got into Federal Court through Diversity of Citizenship: Satisfy 1367(b) - A Supplemental Jurisdiction Kill Switch:

• If P adds a non-diverse Defendant, P must go to state court for the non-diverse claim.

• Otherwise Ps would create fake diversity, get into federal court, then break diversity.

• Prevents a loophole for getting into federal court.

Describe Method 4 of getting into Federal Court.

Method 4: Removal Jurisdiction

Gives ONLY the Defendant a choice to file to remove from state to federal court.

• ALL Ds must file removal within 30 days of service of process. Countdown resets for each D served.

• D(s) shall only remove to the federal district court that geographically EMBRACES the state court where the case was filed.

• D can use either Diversity Jurisdiction or Federal Question.

P can remand back to state court if P thinks removal is improper.

EXCEPTION: If D is sued in their own state of citizenship, D cannot remove to federal court for DIVERSITY only (although he can for federal question).