Civil Procedure II
Professor Hartnett
Spring 2017
Subject Matter Jurisdiction
Federal courts are courts of limited jurisdiction
Can never be waived
CANNOT hear case unless
1) Federal Question Jurisdiction – arises under federal law
2) Diversity Jurisdiction – b/w citizens of different states
Federal Question
May only look to complaint for federal question, not defense, and
Question must be necessary to the complaint, and
Must be actually disputed, the federal question must be the issue of the argument, and
Must be substantial to the federal system, contract dispute not substantial to federal system, IRS claims are. If hoard of cases come in, Congress probably didn’t intend for it to be federal question, and
Must be capable of resolution in federal court without disrupting the federal/ state balance
Is the claim created by state or federal law?
Test
1) Does federal law constitute an essential element of the pleaded claim?
2) The federal issue is substantial
3) The federal issue is disputed
4) Federal jurisdiction would not interfere significantly with division between state and fed.
Diversity Jurisdiction
CITIZENSHIP
All plaintiffs must be diverse from all defendants AND action for more than $75,000.
Where is party (person) domiciled?
1) Burden is on party seeking federal forum to prove parties are citizens of different states
2) Looks to facts as of the date an action is filed
3) Physical presence
4) Intention to remain there indefinitely
– Cannot be domiciled in more than one state at a time.
-Individual always has a domicile until you move to a new state and form an intent to remain there indefinitely.
-Domiciled in old place until intent is formed.
Where is a corporation domiciled?
1) Can have multiple domiciled locations
2) Where it is incorporated AND its principal place of business.
a) PPoB is where high level officers direct, control and coordinate corporation’s activities. Center of overall control, nerve center, corporate headquarters, top guys are. There can only be one PPoB
– Unincorporated associations – generally labor unions, considered citizens of every state in which any member is a citizen
AMOUNT IN CONTROVERSY
Must be $75,000 or greater
Only the money sought in complaint is relevant
Claimed amount is not sufficient ONLY if it is apparent to a legal certainty that said amount cannot be claimed. Must show impossibility.
Claimed amount can later be changed, original amount is what matters
Also count value of injunctive relief – valued by either:
1) Benefit of injunction to plaintiff OR
2) Cost of injunction to defendant
im against a party brought by rule 20. DOES NOT work for multiple defendants.
Test
1) Does additional claim arise out of same operative facts as original claim?
à Yes – Proceed
à No – no jurisdiction
2) Is supplemental jurisdiction prohibited 1367(b)?
à Is federal jurisdiction only present because of diversity?
à No – 1367(b) doesn’t apply
à Yes – claim made by plaintiff against party joined via 14, 19, 20, or 24?
à No – 1376(b) doesn’t apply
à Yes – no supplemental jurisdiction over additional claim
3) Will court decline jurisdiction over additional claim?
à Does claim raise novel issue of state law?
à Does state law claim substantially predominate?
à Has court dismissed the claim it had original jurisdiction over?
à Other compelling reason to decline jurisdiction?
à Yes to any – court may decline
