Personal, Subject Matter Jurisdiction and Venue

What two things are needed to establish domicile?

1. Physical presence there and 2. The intent to make that your permanent home.

What is the approach to an Erie question?

1. Ask: is there a federal law (like federal constitution or statute or FRCP or Federal Rule of Evidence) on point that directly conflicts with state law? If so, apply the federal law, as long as it is valid. What is this based on? Supremacy clause. 2. If there is no federal law on point, ask: is this issue one of the easy ones? These are the easy ones: (1) elements of a claim or defense, (2) statute of limitations, (3) rules for tolling statutes of limitations, and (4) conflict (or choice) of law rules. Why are these easy? These are substantive so you apply state law. 3. What if there is no federal law, and the issue is not an easy one? , but federal judge wants to ignore the state law? If the issue is substantive, she must follow state law. Throw in 3 tests, and come to a reasonable conclusion: a. Outcome determinative: would applying or ignoring the state rule affect outcome of case? If so, it is probably a substantive rule, so should apply state law. b. Balance of interests: does either federal or state system have strong interest in having its rule applied? c. Avoid forum shopping: if the federal court ignores state law on this issue, will it cause parties to flock to federal court? If so, should probably apply state law.

What are the two main kinds of cases that can be heard by federal court?

1. Diversity of citizenship, 2. Federal Question. And diversity of citizenship includes "alienage" jurisdiction.

What are the two requirements for diversity and alienage cases?

1. The case is either (a) between "citizens of different states" (diversity) or (b) between "a citizen of a state and a citizen of a foreign country (alienage)" and 2. The amount in controversy exceeds $75,000.

What is/are the citizenship(s) of a corporation?

1. The state or country where incorporated and 2. The state or country where it has its principal place of business (PPB). So corporations, unlike humans, can have two citizenships.

What is the general rule for transfer of venue

A case can only be transferred to another district where the case "could have been brought." What does that mean? It is to a proper venue that has PJ over the defendant.

What is removal?

A defendant sued in state court might be able to "remove" the case to federal court. Removal is a one-way street - it transfers a case ONLY from a state trial court to a federal trial court. If removal was improper, the federal court can "remand" to state court.

What is the Erie doctrine?

A federal judge in a diversity case must decide an issue. In deciding that issue, does she have to follow state law (or can she ignore state law)? Black letter: in diversity cases, the federal court must apply state substantive law.

What is aggregation?

Aggregation is when P must add two or more claims to meet the amount in controversy requirement.

State law says a particular claim must be asserted individually, and not in a class action. In a diversity case, FRCP 23 would allow it to proceed as a class action. What does the federal court do?

Apply the federal rule if it is valid.

P (Georgia) sues D-1 (NY) and D-2 (Alabama) in an Alabama state court for $500,000. Even though this could have been filed in federal court (because it is a diversity case), D-1 and D-2 cannot remove. Why?

Because D-2 is an in-state defendant. He is a citizen of Alabama and we are in an Alabama court. Now suppose a year and a day later, P dismisses the claim against D-2. So now there is no longer an instate D. So it looks like D-1 should be able to remove. But remember: we cannot remove a diversity case more than a year after it was filed in state court - UNLESS the federal judge finds that P acted in bad faith to prevent removal. Dates always matter.

P hires D to build a house. D then fails to build, and argues that a federal environmental statute prohibits building where P wanted to build. P sues D for specific performance, and alleges that the federal statute does not apply. So P's complaint mentions a federal law and raises a federal issue. But there is no FQ jurisdiction. Why?

Because Plaintiff is not enforcing a federal right. This federal statute gives her no right.

P sues D for $40,000 breach of contract and $70,000 punitive damages. Suppose relevant authority establishes that punitive damages cannot be recovered for breach of contract. Case dismissed. Why?

Because it is clear to a legal certainty that the amount does not exceed 75,000 because as a matter of law, you cannot include the punitives.

What is a federal question case?

Complaint must show a right or interest founded substantially on a federal law (e.g., federal constitution, legislation). The claim must "arise under" federal law. -- Is citizenship of parties relevant? No -- Is amount in controversy relevant? No -- Some FQ cases (e.g., patent infringement, bankruptcy and some federal securities and antitrust cases) can only be brought in federal court. Most FQ, though, can be brought in either state or federal court.

What are the discretionary factors the court can take into account in granting supplemental jurisdiction?

Court has discretion NOT to hear the supplemental claim: (1) if the federal question is dismissed early in the proceedings; or (2) if the state law claim is complex or (3) state law issues would predominate.

What happens if a defendant files a permissive counterclaim in regards to removal?

D who files a permissive counterclaim in state court probably waives right to remove. Filing a compulsory counterclaim in state court probably does not waive the right to remove.

What is excluded from jurisdiction in federal court?

Federal courts will not issue a divorce, alimony or child custody decree; they also will not probate a decedent's estate.

What kind of case can be removed?

General rule: one that would meet the requirements for diversity of citizenship or federal question.

Under the transfer of venue statute, what choice of law rule does the court to which the case is transferred apply?

Generally, those of the state where the case was originally filed.

What happens if removal was procedurally improper?

If removal was procedurally improper, P moves to remand to state court; she must do so within 30 days of removal. But if there is no federal subject matter jurisdiction, P can move to remand anytime (or the federal court can remand anytime). If P sues for $75,000 or less in a state that allows recovery for more than P claims, D can remove under diversity by stating the amount exceeds $75,000 (assuming diverse citizenship). D must prove SMJ.

P (New York) wants to sue D (New York) in federal court. He moves to Connecticut and sues under diversity jurisdiction. OK?

Yes if P changed his domicile. Here we know he moved to Connecticut but we do not know if he has changed his domicile. Why not? Because we do not know his intent.

What is the well-pleaded complaint rule?

If the complaint were well-pleaded, just stating P's claim without extraneous material, would it be federal? To determine if this is met, ask one question: Is the plaintiff enforcing a federal right. If the answer is yes, it's a FQ case. If the answer is no, it is not a FQ case.

What happens if venue in original district of a transfer is improper?

If venue in original district is improper, court may transfer in the interests of justice or dismiss.

What is the limitation for supplemental jurisdiction?

In a diversity case, the plaintiff cannot use supplemental jurisdiction to overcome a lack of diversity.

What is the amount in controversy requirement for diversity jurisdiction?

In addition to the complete diversity rule (or alienage), P's good faith claim must exceed $75,000. 1. Does the amount include interest on the claim or costs of litigation? No, it is the claim alone. 2. Whatever the plaintiff claims in good faith is OK unless it is "clear to a legal certainty" that plaintiff cannot recover more than $75,000.

Where does a business association (corporate or non-incorporated) reside in regards to federal venue?

In all districts where subject to personal jurisdiction for this case. Can reside in a lot of districts.

What are the two big exceptions to the kinds of cases that can be removed?

In diversity cases (not FQ). 1. No removal if any D is a citizen of the forum (instate D rule). 2. No removal more than one year after the case was filed in state court. Only apply in diversity cases.

Where does a human reside in regards to federal venue?

In the district where domiciled.

P (a U.S. citizen domiciled in France) sues D (New York) in federal court. OK?

Is there alienage? No, because plaintiff is not an alien. Is there diversity of citizenship? NO, because P is not a citizen of a U.S. state. Why not? Because she is not domiciled in a U.S. state.

XYZ Partnership has partners who are citizens of NY, NJ, and PA. What is XYZ Partnership's citizenship?

It is NY, NJ and PA

Who must join in removing the case?

It is all defendants who have been served with process.

P (NY) sues D-1 (CA) and D-2 (NY) on state-law claims in one case. The claims arise from the same transaction. The claims exceed $75,000. The claim by P against D-1 invokes diversity of citizenship jurisdiction. The claim by P against D-2 does not invoke diversity or FQ. Can the claim by P against D-2 invoke supplemental jurisdiction? After all, the claim meets "the test."

It is no good because P can never overcome a lack of diversity in a diversity case. But P can use supplemental jurisdiction to overcome lack of diversity for a claim in a federal question case. The limitation only applies in diversity cases.

How do we know if a FRCP is valid?

It is ok if its arguably procedural.

What do you look to in terms of decedents, minors or incompetents for citizenship?

Look to their citizenship, not the citizenship of their representative.

P sues D-1 for $70,000 and D-2 for $6,000 in the same case. OK?

NO! P cannot aggregate these claims. Why? Because we only aggregate the claims of one plaintiff versus one defendant.

Do we care where the business was formed or has its PPB in an unincorporated association case for diversity purposes?

No

P (Spain) sues D (Canada) in federal court. Ok?

No good. Why? Is there alienage? No, because it is not between a citizen of a state and an alien. Is there diversity? No, because it is not between citizens of different states.

Can a person have more than one domicile at a time?

No, a human can only have on state of citizenship.

P (New York) sues D-1 (California) and D-2 (New York) in federal court. OK under diversity of citizenship jurisdiction?

No, because Plaintiff and a Defendant are co-citizens.

XYZ, Inc. (inc. in PA, PPB NJ) sues ABC Corp. (inc. in Delaware; PPB PA). Is that OK?

No, because plaintiff and defendant are citizens of PA.

Can supplemental jurisdiction be used to get a case into federal court?

No, it is not what it does. Supplemental jurisdiction only works after a case is already in federal court (through diversity or FQ). We have an additional claim in that case and that claim does not meet diversity or FQ. We might still be able to get that claim into federal court with supplemental jurisdiction.

P sues D for exactly $75,000. OK?

No, it must exceed 75,000

Is there a limit to the number of claims by one P against one D that can be aggregated?

No, you can add all the claims you want.

What is the basic idea of subject matter jurisdiction in federal courts

Now we know that P will sue D in New York. But in what court? Will we litigate in state court or in federal court? Federal courts can only hear certain kinds of cases.

P (N.D. Ga.) sues D-1 (D. Md.) and D-2 (S.D. N.Y.) for $200,000 for breaching a contract somewhere in the United States. Proper venues?

ONE CHOICE: any district where all Ds reside. What's wrong? There is no such district and we tell the examiners about this. Another choice: Any district where a substantial part of the claim arose.

What are the basic choices for venue?

P may lay venue in any district where: -- all defendants reside* (special sub-rule in hypo #2 below) or -- a substantial part of the claim arose.

P sues D in state court. D files a counterclaim against P in that case. Can P remove?

Plaintiffs can never remove.

What is subject matter jurisdiction?

Power over the case.

What is personal jurisdiction?

Power over the parties.

If venue in original district is proper, the court may transfer to another federal district based on "convenience of parties, convenience of witnesses, and the interests of justice." Courts are nervous about this, because it overrides P's choice of forum. In deciding whether to transfer, what factors does the court look to (in addition to P's interest in choosing a forum)?

Public and private factors showing that the other district is the center of gravity. -- Public: things like what law applies, what community a jury should be drawn from. -- Private: convenience - assess where the witnesses and the evidence are.

Wayne Newton (D. Nev.) sues D-1 (E.D. N.Y.) and D-2 (S.D. N.Y.). What is the special venue rule here?

SPECIAL RULE in cases where all D's reside in different districts of the same state. P can lay venue in the district in which any of them resides. We can sue them both in the Eastern or Southern District of New York.

How is personal jurisdiction assessed in federal court?

Same as in state court.

What is a transfer of venue?

Sending a case from one federal district court to another.

So if P in a diversity case actually recovers less than $75,000, jurisdiction is OK. But what might happen to P?

She may have to pay the defendant's litigation costs. Usually, the loser pays winner's costs (which usually do not include attorney's fees). Each party pays her own attorney's fees unless there is a statute or Rule that allows recovery of attorney's fees.

What is the solid gold summary for supplemental jurisdiction?

So a non-federal, non-diversity claim can be heard in federal court if it meets "the test" UNLESS it is: a. Asserted by a plaintiff b. In a diversity of citizenship (not FQ) case AND c. Is against a citizen of the same state as the plaintiff.

What is the basic idea of venue in federal courts?

Subject matter jurisdiction told us we can take a case to federal court. Venue tells us exactly which federal court. The country is divided into federal districts. P is suing in federal court and wants to lay venue in a proper district.

What is the test for supplemental jurisdiction?

The claim we want to get into federal court must share a "common nucleus of operative fact" with the claim that invoked federal subject matter jurisdiction.

What is the exception to the rule for transfer of venue?

The court can transfer to any district if all the parties consent and it finds cause for the transfer.

P sues joint tortfeasors X, Y, and Z for $75,000.01. Ok?

Yes, Because with joint claims, you use the total value of the claim and the number of parties is irrelevant on joint claims.

What if an additional claim in a federal court case does not meet diversity (alienage) or FQ?

Then and only then, we try supplemental jurisdiction.

What is the complete diversity rule?

There is no diversity of citizenship jurisdiction if any plaintiff is a citizen of the same state as any defendant.

Where do we remove?

To the federal district embracing the state court where it was filed.

Executor (CA), on behalf of the estate of Elvis (Tennessee), sues D (CA). Is that OK?

Yes, because the plaintiff is Tennessee. The executor is irrelevant.

What is the citizenship status for unincorporated associations (like partnerships, LLCs)?

Use the citizenship of all members (that includes general and limited partners).

P sues for an injunction to force D to remove a portion of D's house that encroaches on P's property. How do we figure the value of an injunction?

Usually, if either of these two tests yields over $75,000, the amount requirement is deemed satisfied. Plaintiff's viewpoint: Does the encroachment decrease the value of the P's property by more than 75,000 dollars. Defendant's viewpoint: Would it cost the defendant more than 75K to comply with the injunction.

When is the test always met for supplemental jurisdiction?

When the claim arises from the same transaction or occurrence (T/O) as the underlying case.

What is the corporation's Principal Place of Business?

Where managers direct and control corporate activities. We call this the "nerve center." It is usually the headquarters.

When can a defendant remove?

Within 30 days after service of the first paper that makes the case removable.

Can P use supplemental jurisdiction to over lack of amount in controversy in a diversity case?

Yes

Can additional claims be asserted in a federal jurisdiction case?

Yes

Do federal courts need personal jurisdiction over defendants?

Yes

P (DC) sues D (New York). After filing, P becomes a citizen of New York. Is that OK even though both litigants are now citizens of N.Y.?

Yes, diversity is ok. Two rules from the hypo. 1. We treat D.C. as a state, 2. We test for diversity when the case is filed. So we do not care if someone changes citizenship after the case was filed. We also do not care what the citizenships were when the claim arose. We care only about their citizenship when the case is filed.

P-1 (NY) and P-2 (NY) sue D (PA) on state-law claims. P-1's claim is for $100,000. P-2's claim arises from the same transaction, and is for $50,000. P-1's claim meets diversity. P-2's does not, because even though citizenship is OK, the claim does not exceed $75,000. Can the claim by P-2 invoke supplemental jurisdiction?

Yes, it meets the test and the limitation does not apply to problems with amount in controversy.

P (NY) sues D (NY) for (1) violation of federal antitrust laws, and joins a transactionally related claim for (2) violation of state antitrust laws. OK? Claim (1) is OK because it's a FQ. But claim (2) is not FQ (because it's based on state law) and does not meet diversity. Can claim (2) invoke supplemental jurisdiction?

Yes, it meets the test and the limitation never applies in federal question cases.

P (Spain) sues D (New York) in federal court. OK?

Yes, that is alienage. Between a citizen of a state and an alien.

P sues D-1 and D-2 on June 1. D-1 is served with process on June 1. She does not remove within 30 days. D-2 is served with process on August 1. Can she and D-1 now remove?

Yes, the thirty days starts anew with service on D2.

P sues for more than $75,000 and ultimately wins less than $75,000. Is jurisdiction OK?

Yes, what the Plaintiff wins is irrelevant to jurisdiction.

Does every individual claim asserted in a federal court case have to have federal subject matter jurisdiction?

Yes, you must test for diversity or FQ. Every single claim you have to do this.

P sues D for $40,000 breach of contract and $60,000 for injuries from a completely unrelated fistfight. OK?

Yes. The amount in controversy here is $100,000. Why? We aggregate the claim of one plaintiff versus one defendant.

What is the procedure for removal?

You do not need permission. D files notice of removal in federal court, stating grounds of removal; signed under Rule 11; attach all documents served on D in state action; copy to all adverse parties. Then file copy of notice in state court.

For a natural person who is a U.S. citizen, what is her state of citizenship?

it is the U.S. state of her domicile.