Civil Procedure 1

CIVIL PROCEDURE

A. Federal Subject Matter Jurisdiction (SMJ)

  • Three Types of Subject Matter Jurisdiction:
    1. Federal Question
    2. Diversity of Citizenship
    3. Supplemental Jurisdiction
  • Important Principle: A federal court may only hear cases when it has SMJ because it is a court of limited jurisdiction. The court MUST dismiss an action if it lacks SMJ.

1. Federal Question Jurisdiction

  • Existence of federal question jurisdiction when the claim arises under:
    • (a) federal law,
    • (b) the U.S. Constitution,
    • (c) U.S. treaty.
  • The plaintiff (P) must be enforcing a federal right.
  • Key Requirement: Federal question must be present on the face of a well-pled complaint. Raising a defense under federal law is NOT sufficient.

2. Diversity of Citizenship Jurisdiction

  • Requires BOTH:

    1. Complete diversity of citizenship at the time the action is commenced (no plaintiff can be from the same state as any defendant).
    2. Amount in controversy exceeds $75,000 based on damages alleged in good faith in the Complaint, UNLESS it is legally certain that the plaintiff cannot recover the specified amount.
    • Injunctive Relief: The amount is based on the benefit to the plaintiff or the cost of compliance for the defendant.
    • Claims may be aggregated against one defendant (or multiple defendants if they are jointly and severally liable).

  • Diversity Jurisdiction for Large Class Actions:

    • Exists when:
    1. Amount in controversy exceeds $5 million;
    2. At least 100 class members; AND
    3. Minimal diversity - at least one member of the plaintiff class is a citizen of a different state from any defendant.

  • Limits on Class Action Diversity Jurisdiction:

    • The court MAY decline to exercise jurisdiction when non-diverse members are greater than 1/3 and less than 2/3 of the total class.
    • The court MUST decline to exercise jurisdiction when non-diverse members are greater than 2/3 of the total class.

  • Class Action Jurisdiction Exceptions:

    • Does not apply if:
    • Primary defendants are states, state officials, or other government entities that the court is foreclosed from ordering relief;
    • There are less than 100 class members;
    • The action involves securities or corporate fiduciary claims.

3. Supplemental Jurisdiction

  • Allows a party to bring a state claim in Federal Court that does not meet the requirement of SMJ.
  • A Federal Court may exercise supplemental jurisdiction when such a claim arises from a common nucleus of operative fact as the other claims over which the court has SMJ.
Limitations of Supplemental Jurisdiction

  • Supplemental jurisdiction CANNOT be used to:

    • Overcome a lack of diversity;
    • Assert claims by the original plaintiff against a third-party defendant.

  • A court MAY decline to exercise supplemental jurisdiction when:

    • A claim raises a novel or complex issue of state law;
    • A claim substantially predominates over other claims which the court has SMJ;
    • The court has dismissed all claims that had federal SMJ;
    • In exceptional circumstances.

  • Domestic Relations Exception: Federal courts MUST decline jurisdiction if a case primarily involves domestic relations matters (divorce, alimony, child custody/support issues). However, the court should NOT decline jurisdiction when a domestic relations issue is ancillary to the case.

B. Personal Jurisdiction (PJ)

  • Personal Jurisdiction Requirements: Federal Courts must have PJ over a party for its judgment to be binding. Federal Courts can exercise PJ to the same extent as the state courts where the federal district court is located.

  • Categories of Personal Jurisdiction:

    1. Traditional Bases of Jurisdiction:
    • Domicile;
    • Presence in the state when served;
    • Consent;
    • Waiver (appearing in the action without objecting).
    • The above comport with Due Process requirements.
    1. Long-Arm Jurisdiction: To assert PJ over a non-resident:
      1. The state must have a Long-Arm Statute; AND
      2. Comply with Constitutional Due Process Requirements: Defendant has sufficient minimum contacts with the forum state so as not to offend traditional notions of fair play and substantial justice.

  • Prong 1 - Minimum Contacts (contacts + relatedness):

    • General Jurisdiction: Contacts so substantial that the defendant is essentially at home.
    • Individuals: Domicile in the state.
    • Corporations: Where Corporation is "at home" (usually where incorporated or headquartered).
    • Specific Jurisdiction: Connection between forum state and the underlying controversy.
    • Lawsuit must relate to the defendant's contacts with the state.

  • Prong 2 - Fair Play & Substantial Justice: Must be fair and reasonable for the defendant to be sued in the forum state.

C. Service of Process & Notice

  • Service Timing: Summons & Complaint MUST be served on Defendant within 90 days after filed with the court.
    • Otherwise, the court must:
    • (a) dismiss the action without prejudice against that Defendant; OR
    • (b) order that service be made within a specified period.
  • Process Server: Service may be made by any person who is:
    • (1) at least 18 years old;
    • (2) not a party to the action.

Method of Service

  • Individuals: May be served:

    • (a) personally;
    • (b) via someone of suitable age & discretion residing at the individual's current dwelling;
    • (c) via an agent (by appointment or law);
    • (d) in accordance with state law of the forum state or where service is made.

  • Corporations, Partnerships, or Associations: May be served:

    • (a) in accordance with state law of the forum state or where service is made; OR
    • (b) to an officer or authorized agent.

  • Foreign Defendants may be served via any manner NOT prohibited by international agreement.

D. Venue

  • Proper Venue: Venue is Proper in any district where:
    • (a) any defendant resides (if all defendants are residents of the forum state);
    • (b) a substantial portion of the claim occurred;
    • (c) a substantial portion of the property is located;
    • (d) if none of the above, then where any defendant is subject to the court's PJ.
    • Proper venue is determined at the time the action was filed.

Transfer of Venue

  • If venue was proper when the case was filed, the court MAY transfer it if:

    • (1) Needed for the convenience of witnesses or interests of justice; AND
    • (2) The case could have initially been brought in the receiving court (court has PJ and SMJ).

  • If venue was improper when the case was filed, the court MUST either:

    • (a) dismiss the case; OR
    • (b) transfer the case to a proper court if the interests of justice require it.

  • Forum Selection Clause: Courts will enforce a forum-selection clause UNLESS special factors are present (e.g., significant unusual hardship, inequality of bargaining power).

E. Law Applied by Federal Courts

  • State Law in Federal Court:
    • Erie Doctrine: Applies when a federal case is brought under diversity of citizenship jurisdiction. Federal courts will apply federal procedural law but must apply the substantive law of the forum state in which it sits.

Substance vs. Procedure

  • Procedural Law: civil procedure rules, burden of proof, rebuttable presumptions.
  • Substantive Law: elements of a claim/defense, choice of law rules, statute of frauds, irrebuttable presumptions, statute of limitations & tolling rules, preclusion law.

When Substantive Federal Law Applies

  • Federal law will apply for matters governed by the U.S. Constitution, laws passed by Congress, and valid federal law that preempts state law under the Supremacy Clause.

F. Injunctions & TRO's

  • Preliminary Injunction: Maintains the status quo pending the outcome of an action.

    • May be issued only:
    1. Upon notice to the adverse party;
    2. If the moving party gives security/bond (used to reimburse non-movant for injury caused by the injunction if the moving party is not successful on the merits).

  • Traditional 4-Prong Test requires:

    1. Likelihood of plaintiff's success on the merits;
    2. Likely threat of irreparable harm to the movant;
    3. The harm alleged by movant outweighs any harm to the non-moving party (balancing the harm);
    4. An injunction is in the public interest.

Temporary Restraining Order (TRO)

  • Is an emergency remedy used to maintain the status quo pending the outcome of a preliminary injunction application.
  • To be issued, a movant must allege immediate and irreparable harm, and the court will analyze the same factors as a preliminary injunction.
Ex Parte TRO

  • Moving party MUST:

    1. Provide specific facts in a sworn statement showing immediate and irreparable injury, loss, or potential damage before an adverse party can be heard;
    2. Certify in writing any efforts made to give notice to the adverse party and why notice should not be required;
    3. Give security in an amount that the court deems proper.

  • The United States, its officers, and agencies are NOT required to give security.

  • If granted, an ex parte TRO automatically expires after 14 days, UNLESS:

    • (a) the court sets a shorter time-frame for expiration;
    • (b) the court extends it for good cause;
    • (c) the parties consent.

  • The adverse party may move to dissolve or modify the TRO on 2-days' notice.

Permanent Injunction

  • A party MUST show:
    1. Irreparable injury;
    2. Legal remedies are inadequate;
    3. Balance of hardships favors the party seeking the injunction;
    4. Public Interest is not harmed.
  • May be issued only after a full trial on the merits.

G. Pleadings

  • Claim for Relief: A pleading must contain:
    1. Grounds for court's jurisdiction (unless court already has it & no further support is needed);
    2. The claim showing pleader is entitled to relief;
    3. Demand for relief sought.
  • Special/Heightened state-law pleading rules DO NOT apply in federal court.

Responsive Pleading

  • Must:

    1. State defenses to each claim asserted;
    2. Admit or deny the allegations asserted.

  • An allegation is deemed admitted if:

    • (1) a responsive pleading is required; and (2) the allegation is not denied.

  • Failure to plead an affirmative defense usually results in a waiver of that defense.

Amendments to Pleadings

  • As of Right: Allowed to amend once as a right within 21-days after service of:

    • (a) the original pleading;
    • (b) a responsive pleading or pre-answer motion to the original pleading.

  • By Permission: In all other cases, an amendment is allowed:

    • (a) with the opposing party's written consent; OR
    • (b) with leave of the court upon motion (should be freely granted when justice so requires).

Adding Affirmative Defenses

  • A party must set forth ALL affirmative defenses to the claim alleged. If a party fails to do so, the pleading MUST be amended.

  • Waived Defenses: If the following defenses are NOT included in the defendant's first response (answer pre-answer motion), they are deemed waived:

    • (1) lack of PJ;
    • (2) improper venue;
    • (3) insufficient process;
    • (4) insufficient service of process.

  • Courts have allowed adding waivable defenses to a motion to dismiss when:

    • (1) promptly made;
    • (2) prior to a hearing on the original motion.

Relation Back Doctrine

  • When a Complaint is amended to add a:
    • New Claim relates back to the date of the original filing if it arises out of the same transaction or occurrence as the original pleading allegations.
    • New Defendant relates back if:
    1. Same transaction and occurrence;
    2. New party received notice of the original action within 90 days of filing;
    3. New party knew (or should have known) that the action would have been brought against it but for a mistake in the party's identity.

Counterclaims

  • Permissive Counterclaim: Counterclaims that are not compulsory.
  • Compulsory Counterclaim: A claim that:
    1. Arises out of the same transaction or occurrence;
    2. Does not require adding another party outside the court's jurisdiction.
    • Must be stated in party's pleading or it's barred in future litigation.

Same Transaction or Occurrence Factors

  • Courts analyze whether:

    1. Issues of fact and law are largely the same;
    2. Res judicata would bar a subsequent suit;
    3. Substantially the same evidence supports or refutes the claims;
    4. If there is any logical relation between the claim and counterclaim.

  • The presence of any of these factors supports that the claim arises out of the same transaction or occurrence.

Cross-Claims

  • A pleading may state a claim against a co-party (co-defendant) as a cross-claim, but only if it arises out of the same transaction or occurrence as the original action or counterclaim.

H. Rule 11

  • Rule 11 - Representations to the Court: All papers served in litigation MUST be signed by an attorney of record (or by the party if unrepresented).

    • When presenting papers to the court, the party certifies:
    1. Not for improper purpose;
    2. Legal contentions are warranted and not frivolous;
    3. Factual contentions have evidentiary support or likely will after discovery;
    4. Denials of factual contentions are warranted or reasonably based on lack of information.

  • NOTE: Rule 11 does not apply to discovery or discovery motions.

Rule 11 - Sanctions Imposed

  • The court may issue sanctions (by motion or on its own) for failure to comply with Rule 11.

  • Nature of Sanctions: Are within the discretion of the court and can include:

    • a) Non-monetary directives;
    • b) Pay a penalty;
    • c) Pay reasonable attorney's fees/expenses resulting from the violation.

  • Liability for Sanctions: Generally, a law firm is jointly responsible for a violation by its partner, associate, or employee. Monetary sanctions CANNOT be issued against a client for an unwarranted claim/defense/legal contention made by their attorney.

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