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31 Cards in this Set
- Front
- Back
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Diversity
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• Diversity of citizenship: 1) action must be between citizens of different states OR between citizen of a state and citizen of foreign country (alien) AND 2) amount in controversy must exceed $75,000.
○ Complete diversity rule: no diversity of citizenship if any P is citizen of same state as any D. ○ Alienage rule: must have citizen of a state and alien on other side. Cannot be two aliens. § Alien admitted to U.S. for permanent residence is treated as citizen of state in which he is domiciled. § U.S. citizen domiciled in foreign country is NOT alien, BUT also not citizen of a state--cannot sue in federal court on diversity (must go to state court). |
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People citizenship
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§ Natural person: domicile is focus--established by 2 concurrent factors: 1) presence in state at some point with 2) intent (subjective) to make state your permanent or fixed home. No single factor is determinative: courts look to all to all relevant evidence of intent (in-state tuition, vote). Can only have one domicile at a time.
□ Test for diversity when case is FILED. Subsequent changes and citizenship when claim arose are irrelevant. □ DC and PR are treated as states. |
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Corporation citizenship
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§ Corporations: citizen is 1) all states where incorporated (usually only one) AND 2) one state where company has Principal Place of Business. (so corporations can be citizens of 2 states)
□ Test for PPB: headquarters (nerve center where decisions are made). No longer look at muscle center. § Unincorporated associations (partnerships, LLCs, labor unions): look to--citizenship of all members. Partnership is citizen of all states where its partners (general and limited) are citizens--could be all 50 states. § Decedents, minors and incompetents: look to their citizenship, NOT citizenship of representative. § Class action: citizenship of class representative. |
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○ Amount in controversy: good faith allegation that claim alone exceeds $75,000, exclusive of interests and costs.
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§ Claim: whatever P claims in good faith is OK, unless clear to legal certainty that P cannot recover more than $75,000. (Jurisdiction does not permit punitive damages and needs that claim to meet amount in controversy).
□ Recovery: If P recovers less than $75K, jurisdiction is ok, but even though wins, may have to pay Ds costs (not attorney's fees). Generally winner recovers costs. § Aggregation: P can aggregate claims (even unrelated) against one D. □ Multiple Ds: P cannot aggregate claims against multiple Ds to meet amount in controversy requirement, unless joint claim (can sue X, Y, Z for $75,000.01). § Injunctions: 2 tests □ P's viewpoint: P hurt by more than $75K? □ D's viewpoint: would it cost D more than $75K to comply? Exclusions: federal courts will not issue divorce, alimony, or child custody decree and will not probate decedent's estate. |
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Federal question cases
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• Federal question cases: complaint must show right or interest founded substantially on federal law (federal constitution, legislation). Claim must "arise under" federal law. (NO amount in controversy or citizenship required).
○ Exclusive federal question cases: patent infringement, bankruptcy, and some federal securities and antitrust cases). ○ Well-pleaded complaint rule: if complaint were well-pleaded, just stating P's claim, without extraneous material, would it be federal. Is P enforcing a federal right? BUT federal statute as a defense is not federal question case. |
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Supplemental jurisdiction
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• Additional claims: for every single claim joined in federal court, must have basis of subject matter jurisdiction. If claim is not support by diversity, alienage or FQ:
○ Supplemental jurisdiction: federal court can entertain claims over which it would have no independent basis of subject matter jurisdiction. § Test: common nucleus of operative fact? Claim arise from same transaction/occurrence as underlying case. . ○ Discretionary factors: if federal question is 1) dismissed early in proceedings or 2) state law claim is complex or 3) would violate complete diversity. |
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Limitation on supplemental jurisdiction for diversity cases
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§ Limitation in Diversity case: P cannot use supplemental jurisdiction to overcome lack of diversity. P can never overcome lack of diversity case in diversity case. However, can use supplemental jurisdiction to overcome lack of amount in controversy in diversity case (D2 claim is only $50K, but D1 claim is $100K--fine as long as all diverse).
□ BUT P can use supplemental jurisdiction to overcome lack of diversity for claim in federal question case. □ Any party but P can use supplemental jurisdiction to overcome either lack of complete diversity or amount in controversy. § So unless a non-federal, non-diversity claim can be heard in federal court if it meets supplemental jurisdiction test unless: asserted by P, in diversity of citizenship case and would violate complete diversity |
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Removal
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• Removal: D (only) can have case filed to state court removed to federal court. Removal is one-way, only from state to federal. If removal is improper, federal court remands to state court.
○ Test: D can remove if case can be heard in federal court, diversity or federal question. ○ Where: can only be removed to federal district embracing state court in which case was originally filed. ○ When: must remove no later than 30 days after service of first removable document, usually after initial service of process. ○ Special rule for diversity cases only: no removal if any D is citizen of forum. § If case becomes removable later, cannot be removed more than one year after case filed in state court. |
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Procedure for removal
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○ Procedure for removal: D files notice of removal in federal court, stating grounds of removal. Signed under Rule 11, attach all documents served on D in state action, copy to all adverse parties. Then file copy of notice in state court.
§ If removal was procedurally improper, then P moves within 30 days after removal for remand. But if no federal subject matter jurisdiction, no time limit on raising, can remand any time. § D filed permissive counterclaim in state court probably waives right to remove, but compulsory claim probably does not waive. |
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Erie doctrine
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• Erie doctrine: whether court must apply state law. Black letter: in diversity cases, federal court must apply state substantive law.
○ Is there federal law (statute, FRCP, FRE) on point directly conflicting with state law? If so, apply federal law so long as valid, based on supremacy clause. § FRCP is valid if it is arguably procedural--none have been held invalid ○ If no federal law on point, ask is this issue is any of: elements of claim or defense, Statute of limitations, rules for tolling, conflict or choice of law rules. Apply state law because SCOTUS has said substantive. |
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Final Erie category
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○ If not federal law on point and not above category, federal judge wants to ignore state law. If substantive law, must follow state law. Apply three tests
§ Outcome determinative: would applying or ignoring state rule affect outcome of case? If so, substantive § Balance of interests: does either state or federal system have strong intrest in having its rue applied. § Avoid forum shopping: if federal court ignores state law on issue, will is cause parties to flock to federal court? If so, apply state law. |
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NY Erie case
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○ IN one Erie case, SCOTUS addressed NY tort reform law. NY law provides for new trial based on inadequate or excessive damages if verdict deviates materially form other such verdicts. In addition, provides that appellate courts can apply standard on their own without deference to what trial court did. In diversity case, does federal court have to follow?
§ Deviates materially: substantive, must follow state law § Appellate court apply standard without deference to trial court: not substantive and federal court do not have to follow. |
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Venue: once properly in federal court (subject matter jurisdiction), venue tells which district you bring case.
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• Local action: cases about ownership, possession or injury to land (including trespass), must be filed in district where land lies.
○ If not local action, then case is transitory. • Transitory: P may lay venue in any district court where: 1. All Ds reside § Special rule: if Ds reside in different districts of same state, venue is proper in district where any one of D resides. 2. Substantial part of claim arose ○ Determining residence: § Individuals: residence usually equals domicile § Corporations and other associations: reside in all districts where they are subject to personal jurisdiction when case is filed. DO NOT confuse residency with corporation's citizenship for diversity jurisdiction. |
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Transfer of venue
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• Transfer of venue: from one federal district court to another. Can only transfer to one where case could have been filed: one that is proper venue and where there is personal jurisdiction over D.
○ If venue in original forum is proper and has personal jurisdiction, may transfer to another federal district court based on factors: 1) convenience of parties; 2) convenience of witnesses; 3) interests of justice. Always in discretion of court. § Look at public factors (what law applies, which place should be burdened with jury service)and private factors (convenience, where is evidence and where are witnesses). § Choice of law: if case is transferred, choice of law where state was original filed. If venue of original district is improper, court may transfer interests of just or dismiss. |
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Service of process
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• Service of process: deliver to D 1) summons (formal court notice of suit and time for response) and 2) copy of complaint.
○ Must serve process within 120 days within filing complaint, or case will be dismissed without prejudice, or show good cause for failing to serve within 120 days. |
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Mechanics of service of process
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• Mechanics: process may be served by any nonparty who is at least 18.
○ Methods: federal district court can use any of methods in FRCP, law of state where district court sits OR law of state where service is effect. FRCP methods: § Personal service: papers given to D personally anywhere in forum state. Maybe out of state. § Substituted serve: valid if 1) D's usual abode; 2) serve someone of suitable age and discretion who RESIDES there. § Agent service: process can be served on D's agent authorized to receive service. § Waiver by mail: complaint is mailed to D by mail, with 2 copies of waiver form, postage prepaid. Valid if D returns waiver form within 30 days--D waives service but not personal jurisdiction. □ D pays cost of service if does not return waiver, unless has good cause for not returning waiver. § Out of state: process is delivered to D in another state. Valid only if NY state law allows for service out of state. |
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Defensive responses to complaint
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• Defensive reposes: under FRCP 12, defending arty may respond in 2 ways (by motion or by ansswer) no later than 21 days after service of process on her
○ Answer is pleading: D 1) responds to allegations of complaint (admitting, denying or, when appropriate, saying D lacks sufficient information to admit or deny) and 2) deny affirmative defenses. ○ Motions are not pleadings: ask court to order something, like require P to make more definite statement or to strike pleading or to dismiss case. |
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Defenses in answer or motion and timing
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○ Seven defenses can be raise either on answer or by motion:
1) Lack of subject matter jurisdiction 2) Lack of personal jurisdiction 3) Improper venue 4) Insufficient process (problem with documents) 5) Insufficient service of process 6) Failure to state claim on which relief can be granted 7) Failure to join indispensable party. § Timing: □ 2, 3, 4, 5: MUST be raised in first defensive response or are waived. □ 6, 7: can be raised any time through trial. □ 1--subject matter jurisdiction can be raised at any time. |
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Notice pleading
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○ Complaint must contain: 1) statement of subject matter jurisdiction; 2) short and plain statement of claim, showing entitled to relief; 3) demand for judgment (does not limit what can be recovered except in default cases).
○ Statement of claim need not be made with great specificity or particularity. Sufficient if puts other side on notice. § SCOTUS says P must plead: facts supporting plausible claim § 3 topics requiring party to plead facts with specificity or particularity: fraud, mistake, and special damages (do not normally flow from an event: permanent erection from car accident) |
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Proper parties
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• Proper parties: who may be joined? Same test for co-Ps and co-Ds: Arise from same transaction or occurrence AND raise at least one common question. Must then assess subject matter jurisdiction.
• Necessary and indispensible Ds and Ps: some absentee who are not originally in suit who could be forced into pending case. ○ Necessary if: 1) without absentee, cannot accord complete relief among those already joined (worried about multiple suits) 2) Absentee's interests will be harmed if he isn't joined (practical harm)**** 3) Absentee claims an interest which subjects party (usually D) to possibility of multiple obligations. § If any met, court may order joinder. § Joint tortfeasors: NOT necessary. § Joinder of necessary party not feasible, court must either 1) proceed with case without joining necessary party or 2) dismiss pending case (because necessary party is indispensible). Factors for dismissal: 1) alternate forum available where everybody can be joined (maybe state court); 2) what is real likelihood of harm to anybody if proceed without party; 3) can court do something to share order in pending case to avoid any such harm. |
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Counterclaim
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○ Counterclaim: offensive claim against existing opposing party. Best example is claim by D against P. Filed with responsive pleading (answer). Two types:
§ Compulsory: arises from same transaction or occurrence of P's claim. Must be filed with ANSWER in pending case (unless already asserted) OR WAIVED (cannot sue in separate case) § Permissive: not from same transaction or occurrence, does not have to be asserted in pending case. D may assert in pending case or separate case. Jurisdiction for counterclaims: for every claim asserted in federal court, need to have federal subject matter jurisdiction. Start with diversity/alienage and federal question, then supplemental. Second circuit has upheld supplemental jurisdiction over permissive counterclaim if has "loose factual connection" with P's claim. |
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Cross claim
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○ Cross-claim: offensive claim against existing co-party. May be filed if arise from same transaction or occurrence as underlying action, not compulsory.
§ Jurisdiction for cross claim: supplemental jurisdiction can be used to get cross claim into federal court (not claim by P so no limitation). |
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Impleader
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• Impleader: defending party joins third-party defendant because TPD is or might be liable to for defending party for claim against defending party. Usually claim for indemnity or contribution.
○ Timing: D has right to implead within 14 days of serving answer, after that, need court permission to implead. ○ Process: File TPD complaint. Serve process (court need personal jurisdiction over TPD). ○ After TPD is joined, P can assert claim against TPD if it arises from same transaction or occurrence as underlying case. § After TPD is joined, TPD can assert claim against P if it arises from same transaction or occurrence as underlying case. ○ Subject matter jurisdiction: diversity, federal question, then supplemental. |
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Intervention
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• Intervention: absentee (new party) wants to join a pending suit. Chooses whether to intervene as P or D. Court can realign
○ Intervention of right: absentee's interest 1) may be harmed if not joined AND 2) Not adequately represented now. Same as test for necessary party. ○ Permissive intervention: absentee's claim or defense and pending case have at least one common question. Allowing intervention is discretionary with court. ○ Subject matter jurisdiction: claim by intevenor P or against intervenor D invokes subject matter jurisdiction. |
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Class action requirement
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○ Initial requirements: 1) too numerous for practicable joinder; 2) some questions of law or fact in common to class; 3) Representative's claim/defenses typical of those of class AND 4) representative is adequate--will adequately and fairly represent class.
○ Three types: § Prejudice: class treatment is necessary to avoid harm either to class members or to party opposing class. (claimant on fund, individual claims will deplete) § Injunction or declaratory judgment (not damages) sought because class members were treated alike by other party. Ex: employment discrimination. § Damages: 1) common questions predominate; AND 2) class action is superior method for revolving. Mass tort. |
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Class actions
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○ Court must determine "at early practicable time" whether to certify class to proceed as class action. If court certifies, must define class and class claims, issues or defense AND appoint class counsel. Class counsel must fairly and adequately represent interests of class.
○ Notification of pendency: § Damages: court must notify (often by mail) all reasonably identifiable members--1) can opt out 2) binding effect of class judgment on class members AND 3) can enter separate appearance through counsel. Representative pays to give this notice. ○ Who is bound: all class members, except those who opt-out of damages class action. Cannot opt out of prejudice or injunction class actions. |
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Subject matter jurisdiction for class actions
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○ Settlement with court approval: in all three types of class action, no settlement or dismissal of class claims without court approval. Court gives notice to class members to get their feedback on whether case should be settled or dismissed.
§ In damages class action: must give members second chase to opt out. ○ Subject matter jurisdiction: § Diversity of citizenship: only representative's citizenship is relevant on class side. Do not care about all other class members. □ Amount in controversy: only representative's claim must exceed $75K. □ Class Action Fairness Act: allows federal court to hear class action if any class member is diverse from any D if aggregated claims exceed $ 5 million. Provision to ensure that purely local classes don’t end up in federal court and they are dismissed or removed. |
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Jury trials
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• Jury trial--Process: juries determine facts; court instructs jury on law
○ Right to jury trial: 7th amendment get jury in law, but not equity. If case involves both, get jury on law claims, but not equity claims. Try jury issues first. § 7th amendment does not apply in state courts. State determine when jury is permitted in civil cases. ○ Demand requirement: must demand jury trial in writing no later than 14 days after service of last pleading raising jury-triable issue. ○ Voir dire: each side has unlimited strikes of potential jurors for cause (bias, related to litigant). § Peremptory strikes: each side has 3 peremptory strikes. Must be used in race and gender neutral way. Selection of jury is state action. |
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Motion for judgment as matter of law
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• Motion for judgment as matter of law: exceptional order, effect is to take case away from jury. Motion made at trial.
○ Timing: After other side has been heard at trial. D can move at close of P's evidence and again at close of all evidence. P can move at end of all evidence. ○ Standard: reasonable people could not disagree on result: in ruling on motion, court generally view evidence in light most favorable to nonmoving party. ○ Procedure: if granted jury does not make judgment, judge makes judgment. |
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Renewed motion for judgment as matter of law
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• Renewed motion for judgment of matter of law (judgment notwithstanding verdict): jury reaches verdict and court enters judgment . But now judge enters judgment for opposing party. Must move not later than 28 days after entry of judgment.
○ Same standard as judgment as matter of law. If granted, means jury reached conclusion reasonable people could not have reached. Court will view evidence in light most favorable to nonmoving party. Prerequisite: must have moved for judgment as matter of law during trial. |
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Motion for new trial
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• Motion for new trial: jury reached verdict, court entered judgment on verdict, but now court concludes errors at trial require new trial. Must move no later than 28 days after entry of judgment.
○ Examples of grounds: prejudicial error (not harmless) at trial makes judgment unfair (e.g., wrong jury instruction, erroneous evidentiary ruling); new evidence that could not have been discovered in time for trial; prejudicial misconduct of party or juror (e.g. juror independently investigated accident); judgment is against weight of evidence, showing jury’s serious error. • Comparison of new trial to renewed motion for judgment as a matter of law: Granting new trial is less radical, since it results in starting over. |
