Civ. Pro. Subject Matter Jurisdiction

Federal Question Jurisdiction: Arising Under

"Arising under" language of Article III is more expansive that the "arising under" language of Sec. 1331. -Sec 1331 deals only with the original jurisdiction of the federal district courts, NOT appellate jurisdiction -More expansive "arising under" language of Article III provides US Supreme Court with appellate jurisdiction over any case that turns on the resolution of a federal question, whether or not that question arose as a part of the P's claim.

Grupo Dataflux v. Atlas Global (2004)

"Where there is no change of party, a jurisdiction depending on the condition of the party is governed by that condition as it was at the commencement of the suit."

Removal Jurisdiction: 28 USC 1441(b) REMOVAL BASED ON DIVERSITY OF CITIZENSHIP

(2) A civil action otherwise removable solely on the basis of the jurisdiction under section 1332(a) of this title may not be removed if any of the parties in interest properly joined and served as D's is a citizen of the State in which such action is brought.

Removal Jurisdiction 28 USC 1446(c) Amount in Controversy

(2) If removal of a civil action is sought on the basis of the jurisdiction conferred by section 1332(a), the sum demanded in good faith in the initial pleading shall be deemed to be the amount in controversy, except that- A) the notice of removal may assert the amount in controversy if the initial pleading seeks- -(i) nonmonetary relief; or -(ii) a monetary judgment , but the State practice either does not permit [or require] demand for a specific sum or permits recovery of damages in excess of the amount demanded; and B) removal of the action is proper on the basis of an amount in controversy asserted under subparagraph (A) if the district court finds, by the preponderance of the evidence, that the amount in controversy exceeds the amount specified in section 1332(a).

SMJ: Article III, Section 2 sets the jurisdictional boundaries, permitting federal courts to hear, inter alia:

-Cases "arising under this Constitution, the Laws of the U.S. and Treaties made... under their Authority" (federal question jurisdiction) -Cases between citizens of different states (diversity jurisdiction) -Cases between a state or its citizens and foreign states or their citizens or subjects (alienage jurisdiction)

SMJ

-Congress decides how much SMJ to vest in the federal district courts within the boundaries of Article III. -Thus, question of whether federal district court has SMJ is determined by reference to federal statutes and cases interpreting the statutes.

Diversity Jurisdiction

-Diversity jurisdiction under 1332 requires complete diversity of parties. This means that not party on one side may be a citizen of the same state as any party on the other side. -Compare Article III of the Constitution, which requires only minimal diversity- i.e., there must be at least one claimant who is diverse in citizenship from another. -Diverse citizenship among adverse parties must be present at the time complaint is filed. -Jurisdiction is unaffected by subsequent changes in the citizenship of the parities. Citizenship at the time of filing suit controls- not citizenship before or after date of filing. -To be a CITIZEN of a State within the meaning of 1332, a natural person must be both a citizen of the US and a domiciliary of that State.

SMJ

-Federal courts are courts of limited jurisdiction- can only hear matters listed in Art III, Sec 2 of Constitution -SMJ can be "concurrent" (shared by several different kinds of courts ) or "exclusive" (heard by only a particular kind of court). -State courts and federal courts have concurrent jurisdiction over diversity cases and over most federal question cases.

Example: Embedded Fed. Issue Grable & Sons v. Darue

-IRS seized Grable's Michigan property to satisfy federal tax delinquency, sold it to Darue. -Federal Statute required IRS to give notice of property seizure; Grable received notice by certified mail. -Grable brings state law title action against Darue- claims Darue's title was invalid because IRS failed to give notice of property seizure in EXACT manner required by federal statute. -Grable's state law claim thus turned on question of federal law- the interpretation of the notice statute.

Removal Jurisdiction: Procedure for Remand 28 USC 1447

-Motion for remand based on any defect other than subject matter jurisdiction must be made within 30 days after filing of notice of removal -Can remand any time before final judgment for lack of SMJ -Court can order improperly removing party to pay costs, including attorneys' fees incurred as a result of the improper removal

Diversity Jurisdiction: Amount in Controversy

-Must exceed $75,000, exclusive of interest and costs. --Allegations of pleadings control unless it appears to a legal certainty that claim is really for less than jurisdictional amount. --Amount in controversy is determined as of the date of commencement of the action.

Diversity Jurisdiction: Aggregation of Claims

-One P with two or more claims against one D may aggregate, even if unrelated. -Multiple P's with claims against one D may not aggregate if their claims are separate and distinct. -Where multiple P's or multiple D's have common undivided interest or single title or right, the value of the total interest controls.

SMJ is a matter of sovereignty, not individual liberty. Therefore, unlike PJ:

-Parties can't enlarge federal court jurisdiction through waiver or consent -Federal court can raise issue of SMJ sue sponte. -Parties can challenge a federal court's SMJ at any point in the litigation, including appeal.

Diversity Jurisdiction: 28 USC 1332(a) applies when suit is between:

-US v. US -US v. Foreign -US (and foreign) v. US (and foreign) -Foreign State v. US

Removal Jurisdiction Summary: Removal Procedure

1) D must file a notice of removal in the federal district court containing: -Statement of grounds for removal (SMJ) -Signature pursuant to Rule 11 -Copies of all process, pleadings and orders served on D must file a notice of removal in the federal district court containing: --Statement of grounds for removal (SMJ). --Signature pursuant to Rule 11. --Copies of all process, pleadings and orders served on D. 2) Promptly give written notice to all adverse parties. 3) Promptly file the notice with the state court.

Removal Jurisdiction: 28 USC 1441(c)(1) Joinder of Federal law claims and State law claims

1) If a civil action includes: a) A claim arising under the Constitution, laws, or treaties of the United States (within the meaning of section 1331 of this title), and b) a claim not within the original or supplemental jurisdiction of the district court or a claim that has been made non removable by statute, the entire action may be removed in the action would be removable without the inclusion of the claim described in subparagraph (B).

Removal Jurisdiction Summary

1) Only D's can remove; 2) Original jurisdiction- the case must meet the SMJ requirements such that it could have been brought in federal court. 3) Venue- removal only to the district in which the state case was brought and is pending. 4) 30 days- D must remove within 30 days after receiving the pleading or paper showing that the case is removable (usually, the complaint). 5) If the basis for removal is Diversity: --All D's must join in the removal. --No removal if any DD is a citizen of the forum state. --One year- time limit from (commencement of action) to remove- unless P acted in bad faith. 6) If the basis for removal is Federal Question --Only those D's against whom the federal issue has been asserted are required to join in removal. --Entire action may be removed- federal district court will sever claims that are not within jurisdiction.

Removal Jurisdiction 28 USC 1446(b) Requirements; generally

1) The notice of removal of a civil action or proceeding shall be filed within 30 days after the receipt by the D, through service or otherwise, of a copy of the initial pleading setting forth the claim for relief upon which such action or proceeding is based, or within 30 days after the service of summons upon the D if such initial pleading has then been filed in court and is not required to be served on the D, whichever period is shorter.

Removal Jurisdiction 28 USC 1446(c)(2)

2) If removal of a civil action is sought on the basis of the jurisdiction conferred by section 1332(a), the sum demanded in good faith in the initial pleading shall be deemed to be the amount in controversy, except that A) the notice of removal may assert the amount in controversy if the initial pleading seeks --(i) nonmonetary relief; or --(ii) a money judgment, but the State practice either does not permit [or require] demand for a specific sum or permits recovery of damages in excess of the amount demanded; and B) removal of the action is proper on the basis of an amount in controversy asserted under subparagraph (A) if the district court finds, by the preponderance of the evidence, that the amount in controversy exceeds amount specified in section 1332(a).

Removal Jurisdiction 28 USC 1446(c)(3)

A)If the case stated by the initial pleading is not removable solely because the amount in controversy does not exceed the amount specified in section 1332(a), information relating to the amount in controversy in the record of the State proceeding, or in responses to discovery, shall be treated as an 'other paper' under subsection (b)(3). B) If the notice of removal is filed more than 1 year after commencement of the action and the district court finds that the P deliberately failed to disclose the actual amount in controversy to prevent removal, that finding shall be deemed bad faith under paragraph (1).

Removal Jurisdiction 28 USC 1446(c)(1)

C) Requirements; removal based on diversity of citizenship. 1) A case may not be removed under subsection (b)(3) on the basis of jurisdiction conferred by section 1332 more than 1 year after commencement of the action, unless the district court finds that the P has acted in bad faith in order to prevent a D from removing the action.

Citizen Corporation: dual citizenship

Corporations have dual citizenship: --State of incorporation --State of principal place of business

Supplemental Jurisdiction: Ancillary Jurisdiction

Court extends jurisdiction from a freestanding federal claim to an otherwise jurisdictionally insufficient claim by the D.

Supplemental Jurisdiction: Pendent Jurisdiction

Court extends jurisdiction over a freestanding federal claim to an otherwise jurisdictionally insufficient state law claim, called a "pendent" claim, brought by the P.

Types of Federal Question Claims

Creation Test -Cause of action is created by federal law. Embedded Federal Issue: -Resolution of State law claim requires construction of federal law; and -The federal issue is disputed and substantial; and -Federal court adjudication will not disturb congressionally approved balance of federal and state judicial responsibilities.

Objective componenet

Do the objective facts show indicia of intent?

Supplemental Jurisdiction Step 1 1367(b)

Does the jurisdictionally insufficient claim arises out of the same common nucleus of operative fact (the "SCNOOF" test)? -Are the claims so related that they form part of the same case or controversy? Do they arise from the same transaction or occurrence? --IF NO, no supplemental jurisdiction --IF YES, proceed to 1367(b)

Removal Jurisdiction 28 USC 1446(b)(2)(B)

Each D shall have 30 days after receipt by or service on that D of the initial pleading or summons described in paragraph (1) to file the notice of removal.

Supplemental Jurisdiction Step 2 1367(c)

Even if the proposed supplemental claim passes the tests laid out in 1367(a) and (b), the federal court may still decline to exercise jurisdiction where: -Supplemental claim raises novel or complex issue of state law; -Supplemental claim substantially predominates over federal claim; -Court has dismissed all federal claims; or -For other compelling reasons.

Diversity Jurisdiction: 1988 Amendment

For purposes of 1332(a), an alien admitted to the US for permanent residence is deemed a citizen of the state in which the alien is domiciled. --Does this mean alines can sue aliens in federal court (Singh v. Daimler Chrysler) --Or does it apply only to limit diversity jurisdiction, not expand it? (Saadeh v. Farouki)

Removal Jurisdiction 28 USC 1446(a)

Generally- A D or D's desiring to remove any civil action from a State court shall file in the district court of the US for the district and division within which such action is pending a notice of removal signed pursuant to Rule 11 of the Federal Rules of Civil Procedure and containing a short and plain statement of the grounds for removal, together with a copy of all process, pleadings and orders served upon such D or D's in such action.

Removal Jurisdiction: 28 USC 1441(a) Actions Removable

Generally: except as otherwise expressly provided by Act of Congress, any civil action brought in a State court of which the district courts of the U.S. have original jurisdiction, may be removed by the D or the D's, to the district court of the US for the district and division embracing the place where such action is pending.

Removal Jurisdiction 28 USC 1446(b)(2)(C)

If D's are served at different times, and a later-served D files a notice of removal, may earlier-served D may consent to the removal even though that earlier-served D did not previously initiate or consent to removal.

Federal Question Jurisdiction: Key Questions

Key questions in determining if there is Federal Question Jurisdiction: -Is there a federal issue? 0Is the federal issue an essential part of the P's well-pleaded complaint? **Alternate Theory: If federal law does not "create" P's claim, is the federal issue sufficiently important to "Federalize" the case?

Citizen Corporation: Principal Place of Business Determined By:

Nerve Center Test: to look where "the corporation's high level officers direct, control and coordinate corporate activities; generally, corporation's operating headquarters."

Caterpillar v. Lewis (1996)

Once a diversity case has been tried in federal court... considerations of finality, efficiency and economic become overwhelming.

Diversity Jurisdiction: 28 USC 1332

Original jurisdiction in federal district court exists where: 1) Amt. in controversy exceeds $75,000 exclusive of interest and costs, and 2) Suit is between --Citizens of different states --Citizens of a state and citizens of a foreign state --Citizens of difference rates and in which citizens of a foreign state are also parties; and --A foreign state as P and citizens of a state or of different states.

Supplemental Jurisdiction

Pendent and ancillary jurisdiction

"Citizen" Individual: Domicile

Place of person's "true, fixed and permanent home and principal establishment."

Supplemental Jurisdiction Step 2 1367(b)

Precludes exercise of supplemental jurisdiction when ALL FOUR of following requirements are met: -Jurisdiction over anchor claim is based on DIVERSITY -Jurisdictionally insufficient claim (JIC) is brought by PLAINTIFF. -JIC is being brought AGAINST PARTIES JOINED UNDER RULE 19, 20, 14 OR 24; and -Exercising jurisdiction over the JIC is INCONSISTENT WITH REQUIREMENTS OF 28 USC 1332.

Removal Jurisdiction 28 USC 1446(d) Notice to adverse parties and State Court

Promptly after the filing of such notice of removal of a civil action the D or D's shall give written notice thereof to all adverse parties and shall file a copy of the notice with the clerk of such State court, which shall effect the removal and the State court shall proceed no further unless and until the case is remanded.

"Citizen" Individual: Change in Domicile

Requires: 1) Taking up residence in different state with 2) Intention to remain there indefinitely (to make the new state one's "home"). --Does not require proof of intent to remain permanently --"Vague possibility" of eventually going elsewhere does not defeat finding of domicile in new state of residence.

"Citizen" Individual: Determining "intent" for purposes of citizenship

Subjective and objective component

Mottley

The Well-Pleaded Complaint Rule -Federal question jurisdiction requires that there be some significant issue of federal law that is an essential element of the P's well-pleaded complaint. -The federal court will examine only so much of the complaint as is well-pleaded- confined to its essential elements- to decide whether there is Federal Question jurisdiction. -A suite "arises under" federal law only when the P's statement of his own cause of action shows that it is based upon federal law. -A P cannot invoke the original jurisdiction of a federal court by either anticipating a federal defense or otherwise importing a federal question into his complaint that is not essential to his case. The potential of a federal question is not enough.

Removal Jurisdiction

The court decides on the facts as they existed at the time the notice of removal was filed whether the action satisfies the requirements for federal subject matter jurisdiction.

Removal Jurisdiction: 1441(f) Derivative removal jurisdiction

The court to which a civil action is removed under this section is no precluded from hearing and determining any claim in such civil action because the State court from which such civil action is removed did not have jurisdiction over that claim.

Federal Question Jurisdiction 28 U.S.C. 1331:

The district courts shall have original jurisdiction of all civil actions arising under the Constitution, laws or treaties of the United States.

Removal Jurisdiction: 28 USC 1441(c)(2)

Upon removal of an action described in paragraph (1), the district court shall sever from the action all claims described in paragraph (1)(B) and shall remand the severed claims to the state court from which the action was removed. Only D's against whom a claim described in paragraph (1)(A) has been asserted are required to join in or consent to the removal under paragraph (1).

Subjective Component

What does D say?

Removal Jurisdiction 28 USC 1446(b)(2)(A)

When a civil action is removed solely under section 1441(a), all D's who have been properly joined and served must join in or consent to the removal of the action.