Chapter 3- Subject Matter Jurisdiction and Diversity

domicile

residence, especially in determining diversity

What is the federal amount in controversy for diversity cases?

$75,000- last updated in 1996

person is a citizen of a state where he or she is:

1. present 2. intent to remain indefinitely

why were federal courts given jx. over diversity cases?

1. to protect out-of-state litigants 2. to protect out-of-state creditors trying to collect debts from local citizens 3. to avoid prejudicial local judges

where does the Constitution create federal jurisdiction over diversity cases?

Article 3, Section 2

Alienage Jurisdiction

Fed Court has jurisdiction over matters between citizen and foreign citizen, except of alien has been admitted to US for permanent residence and is domiciled in same state as citizen. Aliens can not be P without other citizen Ps

where is a corporation a citizen?

For diversity purposes, a corporation is considered a resident of its state of incorporation AND the state in which it has its principal place of business.

Well-Pleaded Complaint Rule

It is not enough for FQ JX that some federal issue is raised by the complaint. The P's claim ITSELF must "arise under" federal law. This means we look at the claim, and ignore the other material that P alleges

does the constitution require a minimum amount in controversy in diversity cases?

No, but Congress does

Nerve Center Test

The court noted that "the 'nerve center' will typically be found at a corporation's headquarters."

Louisville & Nashville RR v. Mottley (Complaint)

Well Pleaded Complaint= P cannot anticipate a D's defense to create fed ? juris. 1. MUST have a "federal ingredient" in the complaint

principal place of business

[W]e conclude that the phrase "principal place of business" refers to the place where the corporation's high level officers direct, control, and coordinate the corporation's activities. Lower federal courts have often metaphorically called that place the corporation's "nerve center."

Smith Exception

a case based on state law could arise under federal law if the plaintiff's case turned on an important federal issue

what does it mean to remain indefinitely in a state?

a party intends to make a state home and that present has no present intention of going anywhere else to live

St. Paul Mercury Test

a plaintiff's claim for more than $75K will generally be accepted, if made in good faith, unless it appears that no jury would award more than 75K

Holmes Test

a suit arises under the law that creates the cause of action

aggregate

add together

Gunn v. Minton

case that created the 4 point determination of if a state-law claim raises a federal issue

diversity cases

cases involving citizens of different states who can bring suit in federal courts

what must the court do to determine if a state-law claim raises a federal issue? 4 points

federal issue is: 1. necessarily raised 2. actually disputed 3. substantial 4. capable of resolution in federal court without disrupting the federal-state balance approved by Congress

Complete Diversity

no plaintiff in a case can be from the same state as any defendant in the same case

does her person automatically lose her old domicile upon moving?

no, a person does not lose her old domicile upon acquiring a new one

can co-plaintiffs add their claims together to meet the $75K federal amount in controversy requirement?

no, they cannot do so

must a plaintiff's aggregated claims be related to meet the $75K requirement?

no, they do not need to be

For diversity purposes, partnerships have the citizenship of...?

partnerships and unincorporated associations have been treated as groups of individual litigants, so it is a citizen of every state where its members are citizens

Federal Question Jurisdiction

the subject-matter jurisdiction of United States federal courts to hear a civil case because the plaintiff has alleged a violation of the United States Constitution, federal law, or a treaty to which the United States is a party.

28 USC 1332

this statute established the Diversity and Amount in Controversy Requirements

can a single plaintiff aggregate separate claims against a single defendant to meet the amount in controversy requirement?

yes, a plaintiff can do so

if one plaintiff meets the 75K required amount, can a second plaintiff with claims for less than that amount join the case?

yes, as long as one plaintiff meets the requirement a second plaintiff can join with less