Professor Bent
Civil Procedure Fall 2013
Intro
A. Definitions (General)
· When Jurisdiction is Assessed: at the filing date (or the date of removal, if removed)
· Demurrer: a procedural device; defendant claims the complaint is legally insufficient because the law doesn’t provide a remedy for the conduct alleged
· Declaratory Judgment: a federal procedure; a party who is likely to be sued, can bring the suit to determine its rights/liabilities before a violation occurs. The threatened action (not the defense) determines if there is federal question SMJ.
· Writ of Prohibition: a provision to get a higher court to hear a jurisdiction question, before trial.
· Preliminary Injunctions & Temporary Restraining Orders (TROs): usually happens immediately.
o The courts consider the following in granting one:
§ Likelihood of success on the merits
§ Irreparable harm (inequitable remedy at law)
§ Balance of the harms (damage to defendants/plaintiffs if an injunction is/is not granted)
§ Public Interest
o A TRO is only binding until the temporary injunction hearing à must re-convince the court
o A party can appeal a preliminary injunction (do not have to wait for final judgment; this is an interlocutory appeal)
· Interlocutory Appeal: allows an appeal in the middle of a case; while pending in the trial court
· Temporary Restraining Order (TRO): a temporary solution until a preliminary injunction is granted/denied
· Preliminary Injunction: request at the beginning of a case (until final judgment is made)
· Permanent Injunction: granted at the end of a case
· Garnishment: a post judgment attachment used to collect on a judgment the defendant refuses to pay à through wages or an order to sell assets. Can be taken to any state when defendant has assets – Full faith and credit
· Prejudgment Attachment for Security: a court attaches defendant’s assets, when there is concern the defendant may get rid of them; removes defendant’s control.
B. Choosing a Proper Court
· 3 Requirements à subject matter jurisdiction (SMJ), personal jurisdiction (PJ), & venue
o Defendant can move to dismiss over the lack of any of these requirements
o Consent: defendant can consent to PJ (purpose is to protect defendant)
§ Cannot consent or waive SMJ (purpose is to limit federal powers)
· Joinder: rules about who can be parties to a single case, and the scope of claims
· Article III US Constitution: empowers Congress to have federal courts; co-exist with state courts
· Federal Courts: only the Supreme Court’s jurisdiction is derived directly from the Constitution. Every other federal court derives jurisdiction from Congress. Not all categories of Article III have federal authority à must be authorized by Congress through §1331 or §1332.
· Plaintiff files a complaint à defendant answers à discovery produces evidence à trial court à judgment
· Trial courts may have broad (general) or limited SMJ (usually general)
· Original Jurisdiction: trial court where the complaint is filed (state trial, US district federal courts)
· Appellate Jurisdiction: intermediate courts (US circuit courts, and SCOTUS)
· Each state court structure is different (defined in statutes). SCOTUS is created by the Constitution; the rest of the federal courts are created by Congress (94 federal district courts; 13 federal circuit court of appeals).
· A case with multiple claims à must have SMJ, PJ, and venue over all claims in the case
· Issues of federal law can be litigated in state courts, but the SCOTUS trumps any state ruling on federal law
· Reason for Federal Courts: so states won’t undermine federal laws, through interpretation. To resolve disputed between diverse citizens and eliminate local bias.
C. Federal Rules of Civil Procedure
· Congress enacts statutes that regulate the practice and procedures of the courts à cannot contradict the Constitution. The Supreme Court delegates the rules making authority to the Advisory Committee of the Judicial Conference.
· If the Committee’s rules are approved by the SCOTUS and Congress, then they become effective.
· Constitution à Federal Statutes (USC) à FRCP à Local Rules
· A regulation at each law level, can supplement, but not contradict the sources above it.
· Federal rules do not govern state court procedure
· All courts must follow the Constitution.
Subject Matter Jurisdiction
A. General vs. Limited SMJ
· State courts usually have general (broad) SMJ (unless the court is specialized)
· Federal courts have limited SMJ à cases with national implications; includes cases affecting Ambassadors, public ministers, admiralty and maritime, controversies where the US is a part, matters between 2+ states, between a state and citizens of another state, citizens of different states foreign states and citizens, etc. (these are the Constitutional limits Article II § 2; may be further limited by Congress in §1332 for the federal district/circuit courts). (unconstitutional invasion of powers reserved to the states to hear cases outside federal SMJ).
· For Federal SMJ à need either diversity or federal question:
o Federal Question Jurisdiction: arises under the Constitution of the laws of the US
§ If either party wants a federal court to hear a case with a federal issue, they will do so (if all other requirements are met)
o Diversity Jurisdiction: between citizens of different states
Congress must authorize the lower federal courts (by statute) to exercise federal SMJ
· Concurrent jurisdiction: state courts can also hear cases within the federal court’s jurisdiction (only federal courts are limited in their scope) UNLESS there is exclusive federal jurisdiction (ex. patents/copyrights).
· Federal judges have life tenure (less biased towards public opinion)
· Considerations for state vs. federal à convenience, jury pools, speed, attorney control, out of state litigants
· NOT Waiving SMJ: A case MUST be dismissed for lack of SMJ at any time à cannot be waived, because it concerns the constitutional authority to hear a case (otherwise no legal effect)
B. Diversity Jurisdiction (Federal SMJ)
· US Constitution Article III: “between citizens of different states”
o SCOTUS: can hear cases between states, and between states and citizens of different states under §1257 (if there is a federal ingredient, or repugnant to the constitution)
· 28 USC §1332(a): “exceeds the sum or value of $75,000…between (1) citizens of different states…”
o The federal district courts have NO jurisdiction for cases between a state and citizens of a different state (only states can hear such cases, or the SCOTUS under §1257)
· About 1/3 of federal cases are diversity SMJ.
· Purpose: concern for local bias, so federal jurisdiction was created
· No federal jurisdiction over domestic relations cases (state probate/family courts)
· Diversity cases can usually be heard by the state court too, unless there is exclusive federal SMJ
Requirements
a. Minimum Amount in Controversy: under the USC for civil actions > $75,000
§ Determined by the plaintiff’s claim in good faith (unless it is a “legal certainty” that the claim is for $75,000 or less). Must be based on evidence/facts and not a “petty” controversy.
§ The court may impose costs on the plaintiff if less than $75 (§1332(b); court costs like filing fe
U.S. à Congress has interpreted the federal question jurisdiction more narrowly than the Constitution. Courts have interpreted the statutory grant narrowly.
§ INVOLVES vs. ARISES UNDER: the plaintiff’s cause of action must arise under federal law. There is no federal question SMJ for “anticipated defenses” involving a federal question; Cannot predict that a federal question “will later arise” in the case à can only bring actions to federal court that already arise under federal law (Mottley).
· A case “arises under” federal law only if either:
o Holmes Test is met (created by); or
o Embedded Essential Federal Ingredient (and meets Grable standards)
· Federal statutes (labor, environment, federal tax, patent, securities law à can be heard in state court unless there is exclusive SMJ); state (contracts, tort, property, domestic relations, inheritance, most criminal cases à can be heard in federal court if there is diversity).
· Federal Question Jurisdiction in LOWER Courts Requires:
(well-pleaded complaint + (created by OR essential federal ingredient))
o Well Pleaded Complaint Rule: (Mottley)
§ the case arises under federal law if the federal issue appears on the face of the well pleaded complaint (convenient and efficient rule; do NOT consider the answer or counterclaim).
§ The focus is on the plaintiff’s allegation in the complaint.
§ Anticipated defenses are not part of the “well-pleaded complaint”
AND
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o Created by (Holmes Creation Test):
§ a suit arises under the law that creates the cause of action (the cause of action is created by federal law).
§ Rare Exception: if a federal statute authorized parties to sue, but it should be decided under local/state law à arises under state law (NOT federal)
OR
o Essential Federal Ingredient (Grable test – about 5% of federal question cases)
§ The cause of action is not created by federal law, but there is an embedded essential federal ingredient, and satisfies the other Grable standards.
§ The case must resolve a substantial issue of federal law (but is not created by it)
§ Patents as an “federal ingredient”: if the patent claim is a “federal ingredient” but is not central to the claim à must meet the well-pleaded complaint rule and the Grable Test, or else is it an issue of state law (is it substantial à importance to the federal system as a whole? Will it “open floodgates”? etc.) (Gunn v. Minton)
§ Grable Test: a claim can invoke Fed. Question SMJ only if:
· The state law claim necessarily raises an embedded federal issue (essential federal ingredient);
· The federal issue is substantial (important enough for federal oversight to be appropriate; the government has a direct interest);
· The federal issue is in actual dispute; and
· Exercising federal jurisdiction will not disturb any “congressionally approved balance of federal and state jurisdictional responsibilities”
