There Are Two Types of Questions for the Court to Decide
1. Introduction to Civil Procedure
There are two types of questions for the court to decide:
· Questions of fact: Simply analyzing the facts present during the case
o Questions of fact get decided at the trial court level by, most of the time, a jury and sometimes a jury.
o Questions of fact can get appealed.
· Questions of law: Judge’s job is to apply the facts to the law, tell the jury what the law is, and interpret the law.
o Questions of law cannot get appealed.
Three Tier Court System:
1. Trial Court: Questions of fact and questions of law both get decided here
2. Appellate Court (Court of appeals)
a. Between three to nine judges decide the cases. Always has to be an odd number.
b. The judges opinions on the law and how it was applied to the appealed case
c. Almost all cases get the change to be appealed once.
3. Supreme Court: Typically less that 5% of cases get heard that are appealed to them
a. File a writ of Certiorari to try to get case heard by the State or Federal Supreme Court:
i. Writ of certiorari: a writ that orders a lower court to deliver its record in a case so that the higher court my review it.
b. Can pick cases it hears and dismiss others
c. Can only rule on questions of law
State and Federal Court both have the Three Tier Court System.
Federal Court System
· Trial courts are referred to as Federal District Courts
· Courts of Appeals are referred to as Circuit Court of Appeals
o Are broken down into 11 (13) different circuits
· Federal Supreme Court is the US Supreme Court
The Supreme Court will take on cases where the circuit courts are looking at a law and are split on their decisions or rulings of the law.
· That way the Supreme Court can rule on it so there can be a uniform precedent for the other courts to look at and follow.
Three sources of law
· Constitution
o It sets the extent to whether or not Congress can pass a law, a statute.
· Statutes (statutory law)
· Common law
Most lawsuits based on violation of Federal law can be brought in either state or federal courts.
Civil Procedure: Need to prove that there was a “preponderance of the evidence” (more than 50% proof that it was the other parties fault).
· Uses monetary damages to make the plaintiff whole
Intent: Wanting or desiring to do something. To prove intent you:
· Use circumstances surrounding the facts of the case.
· Can also ask the person, but people lie or people convince themselves of something that may not be true.
Question of Jurisdiction
Jurisdiction: Power of the court to hear a case
· Not all cases can be heard by every court
Two general categories of jurisdiction:
· Subject matter jurisdiction: Whether the court has the authority to hear and decide a certain type of case.
· Personal jurisdiction: The circumstances under which a court (state or federal) has the authority to make decisions binding on particular parties.
o The power of one court to make the defendant come in and defend themselves in the state the court is located in.
§ Can’t force a non US resident to come to the US though.
2. Subject Matter Jurisdiction
A. Types of Subject Matter Jurisdiction
· General subject matter jurisdiction: A court has the power to hear all types of cases except for those specifically set aside (set up by statutes)
o Most state courts have general subject matter jurisdiction.
· Specific subject matter jurisdiction: A list of specific cases heard by the courts. If it’s not on the list it can’t be heard by that court.
o Also known as Limited Subject Matter Jurisdiction
§ Federal district courts have limited subject matter jurisdiction
· A constitutional amendment needs to be passed in order to add/hear any other cases not listed under Article 3 Section 2.
· Original Subject matter jurisdiction: Like general subject matter jurisdiction, courts that have this can hear anything except what is excluded from them by statute.
o Supreme Courts have original subject matter jurisdiction
· Exclusive: This subject matter jurisdiction means that this particular court has subject matter over certain cases and are the only courts that can hear cases on these subjects (i.e. juvenile)
· Concurrent: This subject matter jurisdiction means that there are numerous courts that can hear the same subject matter for cases (Both federal and state)
Parties that litigate the case without raising the issue of subject matter jurisdiction can assert the lack of subject matter jurisdiction on appeal, but cannot raise it in a collateral suit.
· Objection can be raised at any time by any party, prior to verdict being decided, by the final Supreme Court decision. Can even be brought by the court itself.
· After the case is FINAL and all decisions are done, you cannot object to Subject matter jurisdiction because all appeals are complete.
· Subject matter jurisdiction can even be raised by the losing party who originally said there was subject matter jurisdiction.
B. 28 USC §1332: Diversity of Citizenship
· The district court shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000 exclusive of interests and costs:
1. Between citizens of different states
2. Citizen of a state and citizens or subjects of a foreign state, except that the district courts shall not have original jurisdiction under the subsection of an action between citizens of a state and citizens or subjects of a foreign state who are lawfully admitted for permanent residence in the US and are domiciled in the same state.
§ When they have dual citizenship most courts have ruled that they cannot be sued under 1332 (A)(2).
· You can either have a federal question or diversity jurisdiction
Hypo:
20th century Fox (domiciled in CA) v. Elizabeth Taylor (Domiciled in US, Moved to Great Britain with intent to remain their indefinitely)
· 20th century tried suing twice to try and go to federal court:
o 20th century tried suing Taylor based on 1332(a)(1), but failed because Taylor established a new domicile in Great Britain, and no longer resided in the United States.
o Then they tried suing under 1332(a)(2), but she hadn’t given up her US citizenship so that too failed.
· Instead they had to sue in state court, but they got personal jurisdiction so she came to the US for the case.
Diversity cases: cases that include citizens of different states
· Citizenship is equal to domicile
o To be a citizen of a state within the United States:
§ You have to be a citizen of the US
§ You have to have domicile in the state.
o Individual Domicile:
1. Physical presence in the state of domicile and;
2. The intent to stay there and remain indefinitely. (You have to have presence and intent)
· You can only have one domicile, but you can have more than one residency if you have more than one home.
The only time you would want to establish diversity of citizenship is when you want to move the case to be heard in Federal Court.
You can drop a case and refile in order to fulfill diversity jurisdiction, but double jeopardy could occur if not done within a reasonable amount of time prior to the verdict.
Hypos:
1. A v. B case involving Federal statute.
a. Can be heard in Federal court under 28 USC 1331 and state court because it does not exclude state courts. Only state courts with general subject matter jurisdiction can hear it.
2. A from Mississippi v. B from Alabama sues for automobile accident for 100 thousand
a. Most automobile accidents are covered under state claims.
b. Can be brought into federal court due to 28 USC 1332. Can also be in state court because the statute doesn’t exclude them.
3. A from Mississippi v. B from Mississippi for motor vehicle tort worth 100 thousand.
a. Can’t be brought into federal courts because there’s no federal question and both are not from different states.
4. A sues B for admiralty
a. Can only be brought into federal courts because under 28 USC 1333 it excludes state courts.
Determining the domicile of a corporation
Corporations: even though they are comprised of individuals, it’s not based off of that, but it’s a legal entity unto itself.
· (1809) Corporation would be domiciled where all of it’s shareholders are domiciled
· (1844) Instead of seeing a corporation as domiciled where it’s shareholders are, it would be domiciled where it’s incorporated.
· (1958) Corporations are citizens of the state(s) of incorporation plus its principle place of business
o Most of the time corporations have dual citizenship due to their incorporation state and principle place of business.
Determining a corporations principle place of business:
1. Nerve center test: where the headquarters is located
2. Muscle test: where the most business done by the company is located. (Ruled out and replaced by just the nerve test; Hertz Case)
**If the state where the headquarters is incorporated isn’t where the major decisions and actions of the company occur, then your principle place of business could be disputed.
Determining the domicile of non-incorporated businesses
Partnerships: Citizenship is based on the citizenship of the partners.
Limited Liability Companies: (LLC) are based just like partnerships and based solely on the citizenship of its members.
· If an LLC has a corporation as one of it’s partners, you look at the state it’s incorporations and principle place of business to determine that specific citizenship for that partner.
A corporation could be a partner in a partnership or a member in a LLC.
Amount in Controversy Requirement
· Limitations to amount in controversy are established in jurisdictional statutes and traditionally have served two functions:
a. They reflect the notion that a federal tribunal shouldn’t be a small claims court
b. They are a method of docket control.
Amount in controversy claims come in two different forms:
1. Transactionally related: Claims come from the same occurrence or event
2. Not transactionally related: When the two claims do not arise out of the occurrence or event
(Look at chart in notebook)
C. Federal Question Jurisdiction
· §1331: General Federal Question Statute:
o The district courts shall have original jurisdiction of all civil actions arising under the Constitution, law, or treaties of the US.
§ It is a non-exclusive statute.
Anticipated defense rule/Mottley Rule: Plaintiff can’t assume that the defendant will use a defense that arises under a Federal Statute/Law; the plaintiff must file a claim arising under a Federal Question to get into Federal Court. (Has to be in the plaintiff’s case originally)
There are two issues dealing with federal questions:
1. Creation Test/Holmes Test: The Federal Question in the plaintiff’s claim is being raised under a statute of court of United States and private enforcement rights for the individual giving them the right to sue for those violations.
2. Substantial/Importance: If the federal issue is so substantial/important then the court will find Federal Jurisdiction even if there is no enforcement power to the individual.
To get into a Federal Court if you’re determining a Federal Question:
1. Statute has to be applicable
2. Have to prove there is something within the statute that congress wrote into the statute that there is private enforcement rights for the individual. (The court will look at the legislative intent if it’s not directly written into the statute)
D. Supplemental Jurisdiction
· §1367: When a person brings a case invoking Federal Subject Matter Jurisdiction, but also has an individual claim that does not include Federal Subject matter jurisdiction.
o Federal courts can hear these two different claims so long as they are related to the underlying dispute as to constitute part of the same “case or controversy” under article 3. This is called pendent or ancillary jurisdiction.
o Allows plaintiff’s to bring both claims to Federal court so that the Federal Court can decide the Federal question and it saves the courts time and money.
E. Removal Jurisdiction §1441
· Permits the defendant to “remove” a case that was originally filed in state court to federal court if the plaintiff was able to originally file in Federal Court.
o Case must be one that the Federal Courts have subject matter jurisdiction over.
· This can only go from state to Federal, not Federal to state or from one state to another.
· Defendant files notice of removal and sends a copy of notice of removal to plaintiff promptly.
o Plaintiff has 30 days after filing of notice to object to the removal. (Not 30 days from when plaintiff receives notice)
Removal happens because:
1. The defendant may prefer unelected federal article 3 judges or are concerned with possible local bias.
2. They may prefer federal court procedures or believe the federal court has greater expertise,
3. The defendant’s lawyer may simply have greater familiarity with federal court practices.
§1446: Procedure for removal of civil actions: (Rule of unanimity)
· All defendants who have been properly joined and served with process must agree to the removal.
o If a defendant is not served and there’s more than one defendant, the case can still be removed because the others were served.
o In most states, a plaintiff is not required to state a dollar figure for damages. In most states, even when you do, you can recover more than that if the case is adjudicated.
Three ways a Federal Court gets subject matter jurisdiction:
1. Federal question
2. Diversity
3. Supplemental jurisdiction
Whichever party wants to get the case removed to Federal court, the burden to prove there’s a Federal question, diversity, or supplemental jurisdiction falls on them.
3. Personal jurisdiction