Subject Matter Jurisdiction

Removal is available to which party?

Only defendants

Laws of the Several States

1. Substantive positive law 2. Substantive common law 3. Rules of procedure

Removal to Federal Court

28 U.S.C. § 1446 o Lawsuit is filed in state court o Defendants file a "notice of removal" o Plaintiff can move to remand the case to state court ♣ The whole case can be removed to federal court, and the court will then decide what state claims to keep and send the rest back to state court. ♣ Notice of removal must be filed within 30 days from the day the case becomes removable ♣ Case may not be removed on the basis of diversity jurisdiction more than 1 year after it's filed unless acted in bad faith ♣ State court shall proceed no further after case is removed unless case is remanded ♣ An order to remand back to state court is not reviewable on appeal it is final o To be removed, the case must have complete diversity of citizenship or must involve a federal question

28 U.S.C. § 1332(c)(1)

A corporation shall be deemed to be a citizen of every State and foreign state by which it has been incorporated and of the State or foreign state where it has its principle place of business.

Federal Question Jurisdiction

Federal courts can hear: 1. Federal Questions, which arise under federal law (§ 1331) 2. Diversity Cases with citizens of different states (§ 1332) 3. Supplemental Jurisdiction Cases (§ 1367) • A suit arises under the Constitution and laws of the United States for purposes of 28 U.S.C. § 1331 only when the plaintiff's well-pleaded complaint is based upon federal law.

28 U.S.C. § 1331

Federal district courts have original jurisdiction over all civil actions arising under the Constitution, laws, and treaties of the United States. -- A case arises under federal law if the federal question appears on a fair reading of a well-pleaded complaint.

Diversity Jurisdiction

Federal district courts have original jurisdiction over matters involving litigants who are citizens of different states, U.S. citizens and citizens of a foreign country, or a foreign state and a U.S. citizen, if the amount in controversy is more than $75k - 28 U.S.C. 1332

Laws of the Several States - Substantive common law

No - overruled by Swift v. Tyson ♣ Swift v. Tyson - Courts don't make law, courts find & interpret law. Therefore, common law decisions don't have to be applied in diversity cases. Federal courts were free to apply general law (whatever they wanted), which led to forum shopping. A could ask federal court to use general law when they didn't like state law. ♣ The Constitution does not authorize federal courts to enact general federal law.

28 U.S.C. § 1441

Removal of Cases from State Courts Any civil action brought in a state court of which the district courts of the United States have original jurisdiction may be removed by the defendant or the defendants to the district court of the US for the district embracing the place where such action is pending (if the plaintiff could have brought the case in federal court)

Removal in defendant's home state

The defendant has the right to remove when the plaintiff is suing the defendant in a jurisdiction that is not the defendant's home state. However, if the plaintiff is suing the defendant in state court located in the defendant's home state, then the defendant cannot remove. 28 U.S. C. 1441(b)(2). If a plaintiff's suit is based on federal law, the defendant may have the case removed without showing diversity.

28 U.S.C. § 1332(d)(2)

The district courts shall have original jurisdiction of any civil action in which the matter of controversy exceed $5 million, exclusive of interests and costs, and is a class action in which - (A) any member of a class of plaintiffs is a citizen of a State different from any defendant

Rules of Decision Act - 28 U.S.C. § 1652

The laws of the several states, except where the Constitution or Acts of Congress otherwise require or provide, shall be regarded as rules of decision in civil actions in the courts of the United States, in cases where they apply. (diversity and supplemental jurisdiction cases)

28 U.S.C. § 1332(c)(2)

The legal representative of the estate of a decedent shall be deemed to be a citizen only of the same State as the decedent.

Hertz Corp v. Friend

The phrase "principal place of business" in § 1332 refers to the place where a corporation's high level officers direct, control, and coordinate the corporation's activities. The nerve center is the headquarters.

Byrd Balancing Test

To determine if substantive positive law applies under Erie o Balance importance of federal practice against the likelihood of different outcomes in state court o Look at whether disregarding state law would: ♣ 1. Facilitate forum shopping ♣ OR ♣ 2. Lead to the inequitable administration of laws o If yes, then follow the state law. o If no, then follow the federal law.

Erie Doctrine

What law applies in a federal court in a diversity case or in a supplemental jurisdiction case?

Subject Matter Jurisdiction

Whether or not the court has authority to adjudicate a particular type of case Article III of the Constitution & 28 U.S.C. § 1331, 1332, 1367 Federal courts are courts of limited jurisdiction

Laws of the Several States - Rules of Procedure

Yes - Articles II & III give Congress and courts the power to create rules of procedure. "No one doubts federal power over procedure." Federal Rules of Civ Pro are codified by Congress and the Supreme Court, which is why they outweigh state rules. Service of process is a procedural rule governed by FRCP.

28 U.S.C. § 1367

authorizes federal courts to hear a state law claim arising out of the same common nucleus of operative facts (Supplemental Jurisdiction)

Concurrent Jurisdiction

federal questions and diversity cases can be heard in the state courts as well

Supplemental Jurisdiction Test

o If the state claims are part of the same case or controversy under the federal question o If they derive from the same common nucleus of operative facts

28 U.S.C. § 1332(a)(2)

only the American nationality of the dual citizen should be recognized

Outcome-determinative Test

♣ Federal courts sitting in diversity should apply a state law that conflicts with federal practice when disregarding the state law would significantly affect the outcome of the litigation. ♣ The lower federal courts therefore erred by refusing to apply the state statute of limitations based on a contrary federal practice.

Laws of the Several States - Substantive positive law

♣ Yes, applies ♣ Laws that are enacted (regulations, statutes, Constitution, etc.) ♣ Federal courts have to apply substantive state law in diversity cases • Substantive rules of state law apply under Erie. If, however, state law rules or practices are rationally capable of classification as either substantive or procedural, then: o Does a federal rule or statute govern the situation and conflict with state law? ♣ A) Does the federal rule of civ pro exceed the Supreme Court's authority under the Rules Enabling Act? (never happens) ♣ B) Is the federal rule or statute Constitutional? o If so, then the federal rule or statute applies.