FEDERAL JURISDICTION AND PROCEDURE BARBRI BOOK EXAMPLE

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1 FEDERAL JURISDICTION AND PROCEDURE BARBRI BOOK EXAMPLE

2 FEDERAL JURISDICTION AND PROCEDURE i. FEDERAL JURISDICTION AND PROCEDURE TABLE OF CONTENTS INTRODUCTION A. PERSONAL JURISDICTION B. SUBJECT MATTER JURISDICTION Diversity of Citizenship Jurisdiction Federal Question Jurisdiction Removal Jurisdiction Supplemental Jurisdiction C. VENUE D. DISCOVERY E. MULTIPLE PARTIES I. PERSONAL JURISDICTION A. OVERVIEW Limitations on Personal Jurisdiction a. Statutory Limitations b. Constitutional Limitations c. Personal Jurisdiction in Federal Courts Three Types of Personal Jurisdiction a. In Personam Jurisdiction b. In Rem Jurisdiction c. Quasi In Rem Jurisdiction ) Defendant Is Not Bound Personally B. STATUTORY LIMITATIONS ON IN PERSONAM JURISDICTION Physical Presence at Time of Personal Service State Law Exceptions to Traditional Rule a. Service by Fraud or Force Invalid b. Immunity of Parties and Witnesses Domicile a. Defined b. Citizenship Consent a. Express Consent ) By Contract ) By Appointment of Agent to Accept Service of Process a) Appointment Required by State b. Implied Consent c. Voluntary Appearance Long Arm Statutes a. Unlimited Long Arm Statutes b. Limited (or Specific) Long Arm Statutes ) Limitations in Tort Cases ) Limitations in Contract Cases ) Limitations in Property Actions

3 ii. FEDERAL JURISDICTION AND PROCEDURE 4) Limitations in Marital Dissolution Cases C. CONSTITUTIONAL LIMITATIONS ON IN PERSONAM JURISDICTION Sufficient Contacts with the Forum: Contact and Fairness a. Traditional Rule: Physical Power b. Modern Due Process Standard: Contact and Fairness ) Contact a) Purposeful Availment (1) Stream of Commerce Cases (2) Internet Cases b) Foreseeability ) Fairness a) Relatedness of Claim to Contact (1) Claim Arising from Activity in the State (Specific Jurisdiction) (2) Essentially At Home in the State (General Jurisdiction). 11 b) Convenience c) Forum State s Interest d) Other Factors Notice a. Traditional Methods of Personal Service Satisfy Due Process Notice Requirements b. Requirement that Agent Notify Defendant c. Requirements for Cases Involving Multiple Parties or Unknown Parties.. 13 d. Knowledge that Notice by Mail Was Not Received D. IN REM JURISDICTION Statutory Limitations Constitutional Limitations a. Nexus ) No Jurisdiction If Property Not Located in State ) No Jurisdiction If Property Brought in by Fraud or Force b. Notice E. QUASI IN REM JURISDICTION Statutory Limitations Constitutional Limitations a. Nexus ) Quasi In Rem Type I ) Quasi In Rem Type II ) Procedural Requirements b. Notice II. DIVERSITY OF CITIZENSHIP JURISDICTION A. INTRODUCTION B. DIVERSITY AMONG THE PARTIES Complete Diversity When Action Is Commenced a. Multiple Parties Complete Diversity ) But Note ) Interpleader Exception

4 FEDERAL JURISDICTION AND PROCEDURE iii. a) Federal Interpleader Statute Minimal Diversity b) Interpleader Under Federal Rules Complete Diversity b. Alienage Jurisdiction c. Diversity When Action Is Commenced Questions of Citizenship a. State Citizenship of an Individual Domicile b. Citizenship of a Corporation Possible Multiple Citizenships ) Special Rule for Direct Actions ) Corporations Chartered in Foreign Countries c. Unincorporated Associations ) Citizenship ) Class Action ) Partnerships ) Limited Liability Companies d. Business Trusts e. Suits Brought by Legal Representatives f. Class Actions g. Nonresident United States Citizens h. Aliens Admitted for Permanent Residence Collusion and Devices to Create or Defeat Diversity a. Assignment of Claims b. Class Actions c. Voluntary Change of State Citizenship d. Defeating Diversity to Prevent Removal Realignment According to Interest a. May Create or Destroy Diversity b. Shareholder Derivative Actions Ancillary ( Supplemental ) Jurisdiction Subsequent Addition of Parties a. Restriction on the Use of Supplemental Jurisdiction in Diversity Cases.. 21 b. Intervention of Right c. Permissive Intervention d. Substitution of Parties e. Third-Party Practice Impleader ) Subject Matter Jurisdiction Required f. Cross-Claims ) Subject Matter Jurisdiction Required C. JURISDICTIONAL AMOUNT: IN EXCESS OF $75, What Is In Controversy? a. Collateral Consequences of the Judgment b. Interest and Costs c. Equitable Relief d. Punitive Damages Aggregation of Separate Claims a. One Plaintiff Against One Defendant b. One Plaintiff Against Several Defendants c. Several Plaintiffs Against One Defendant

5 iv. FEDERAL JURISDICTION AND PROCEDURE 3. Supplemental Jurisdiction over Claims Not Exceeding $75,000 in Diversity Cases Counterclaims a. Compulsory Counterclaim Need Not Meet Jurisdictional Amount b. Permissive Counterclaim Must Meet Jurisdictional Amount c. No Removal to Federal Court Based on Counterclaim D. ERIE DOCTRINE AND THE LAW APPLIED UNDER DIVERSITY JURISDICTION Is There a Federal Directive on Point? a. Caution b. Recent Application If There Is No Federal Directive on Point, Is the Issue Substance or Procedure? a. Some Situations Are Clearly Established b. Law Is Unclear in Other Situations Statutes Involving Both Substance and Procedure Interpreting State Law a. De Novo Review of District Court s Decision b. Subsequent State Court Decisions E. EXCEPTIONS TO DIVERSITY OF CITIZENSHIP JURISDICTION Domestic Relations Probate Proceedings F. MULTIPARTY, MULTIFORUM TRIAL JURISDICTION ACT Requirements a. The Action b. Minimal Diversity c. One Additional Condition Intervention Service of Process III. FEDERAL QUESTION JURISDICTION A. INTRODUCTION B. FEDERAL QUESTION MUST APPEAR IN THE COMPLAINT Defendant s Answer or Defense Is Irrelevant Anticipation of a Defense C. IMPLIED FEDERAL RIGHT OF ACTION D. FEDERAL CORPORATIONS E. PENDENT (SUPPLEMENTAL) JURISDICTION OVER STATE CLAIMS Pendent Claims a. Effect of Dismissal of Federal Claim on Pendent Claim Pendent Parties F. SPECIFIC STATUTORY GRANTS Amount in Controversy Exclusive Jurisdiction a. Bankruptcy Proceedings b. Patent and Copyright Cases c. Many Cases Where United States Is Involved d. Cases with Consuls and Vice-Consuls as Defendants

6 FEDERAL JURISDICTION AND PROCEDURE v. e. Antitrust Cases f. Admiralty Cases Caveat g. Foreign State Caveat h. Postal Matters i. Internal Revenue j. Securities Exchange Act IV. VENUE A. SUBJECT MATTER JURISDICTION DISTINGUISHED B. GENERAL RULES General Rules for Most Civil Actions Actions Involving Both Diversity and a Federal Question Special Venue Provisions C. RESIDENCE Individuals Corporations Unincorporated Associations D. VENUE IN LOCAL ACTIONS E. IMPROPER VENUE MAY BE WAIVED F. TRANSFER Original Venue Proper a. Effect of Forum Selection Clause Original Venue Improper Original Court Lacks Personal Jurisdiction G. LAW APPLICABLE UPON TRANSFER Original Venue Proper Original Venue Improper V. REMOVAL JURISDICTION A. ORIGINAL JURISDICTION NECESSARY When Federal Defense Insufficient State Court Need Not Have Had Jurisdiction B. ONLY DEFENDANT MAY REMOVE; ALL MUST SEEK REMOVAL C. VENUE D. DEFENDANT MAY REMOVE SEPARATE AND INDEPENDENT FEDERAL QUESTION CLAIM E. DISMISSAL OF NONDIVERSE PARTY ALLOWS REMOVAL Limitations on Removal in Diversity of Citizenship Cases a. Defendant Citizen of Forum State b. One Year Rule F. PROCEDURE FOR REMOVAL Notice of Removal Thirty Day Rule Procedure After Removal Right to Jury Trial a. Demand for Jury Trial b. Demand Not Required

7 vi. FEDERAL JURISDICTION AND PROCEDURE 5. Remand a. Subject Matter Jurisdiction Generally Considered First G. SPECIFIC TYPES OF ACTIONS Removable Nonremovable a. All Writs Act Not a Basis for Removal VI. CONFLICT OF JURISDICTION BETWEEN STATE AND FEDERAL COURTS A. FULL FAITH AND CREDIT EXTENDED TO FEDERAL COURTS B. INJUNCTIONS AGAINST PENDING STATE PROCEEDINGS C. INJUNCTIONS AGAINST THREATENED STATE CRIMINAL PROSECUTIONS D. INJUNCTIONS AGAINST STATE TAX PROCEDURES E. THE DOCTRINE OF ABSTENTION Policy of Abstention Federal Intervention in Certain Cases VII. THE FEDERAL RULES OF CIVIL PROCEDURE A. COMMENCEMENT OF THE ACTION B. SERVICE OF PROCESS Who May Serve How Service Is Made a. Service Under State Rules b. Waiver of Service (Service by Mail) ) Effect of Waiver ) Effect of Failure to Waive Parties Served Outside State Parties Served in Foreign Country Immunity from Process C. EXTENSION OF TIME PERIODS D. INTERLOCUTORY INJUNCTIONS Preliminary Injunction Temporary Restraining Order a. Requirements for Ex Parte Temporary Restraining Orders ) Specific Facts Showing Immediate and Irreparable Injury ) Efforts to Give Notice ) Security b. Notice of Hearing vs. Actual Notice c. Discretion of Court d. Time Limit E. PROVISIONAL REMEDIES F. PLEADINGS Complaint Pre-Answer Motions a. Rule 12(b) b. Motion for More Definite Statement c. Motion to Strike Answer

8 FEDERAL JURISDICTION AND PROCEDURE vii. a. Must Contain Denials or Admissions and Any Affirmative Defenses b. Time c. Counterclaims d. Effect of Failure to Answer Default and Default Judgment ) Default ) Default Judgment a) Default Judgment Entered by the Clerk ) Notice Required ) Setting Aside a Default or a Default Judgment Inconsistent Claims or Defenses Special Pleading a. Capacity b. Fraud or Mistake c. Conditions of the Mind d. Conditions Precedent e. Official Document or Act f. Judgment g. Timing h. Special Damages Reply Amendment and Supplemental Pleadings a. Amendment ) Relation Back ) Changing Party ) Conform to Evidence ) Due Process Limitation b. Supplemental Pleadings Rule a. Certification upon Presenting Paper to Court b. Sanctions ) Court s Initiative ) Party s Motion G. JOINDER Joinder of Parties a. Capacity b. Compulsory Joinder (Indispensable Parties) ) Should the Absentee Be Joined? ) Can the Absentee Be Joined? ) Should the Action Proceed Without the Absentee? c. Permissive Joinder Requirements Joinder of Claims a. Successive Claims b. Jurisdiction c. Class Actions ) Prerequisites ) Consideration in Treating Case as a Class Action a) Court Must Define Class Claims, Issues, or Defenses b) Appointment of Class Counsel

9 viii. FEDERAL JURISDICTION AND PROCEDURE 3) Effect of Judgment a) Personal Jurisdiction Over Absent Class Members Not Required ) Notice a) Notice Required in Common Question Suits b) Notice Discretionary in Other Types of Class Action Suits ) Jurisdiction a) Diversity Action b) Federal Question Action ) Court Approval a) Notice of Dismissal or Settlement b) Procedures for Settlements of Class Action Suits (1) Opt Out Provision c) Appeal of Approval of Settlement ) Appeal of Class Action Certification Decision d. Class Action Fairness Act ) Subject Matter Jurisdiction Under the CAFA ) Removal Under the CAFA ) Excluded Actions a) Primary Defendants Are States or Governmental Entities b) Claims Based on Securities Laws or Regarding Corporate Governance ) Local Considerations May Defeat Jurisdiction a) Mandatory Decline of Jurisdiction b) Discretionary Decline of Jurisdiction ) Protections Under the CAFA a) Coupon Settlements b) Protection Against Loss by Class Members c) Protection Against Discrimination Based on Geographic Location d) Notification of Federal and State Officials e. Shareholder Derivative Suits ) Minority Shareholder Allegations ) Corporation Named as Defendant ) Jurisdictional Amount and Venue ) Court Approval f. Interpleader ) Purpose Is to Avoid Double Liability ) Rights of Plaintiff Stakeholder ) Jurisdiction a) Rule 22 Interpleader b) Federal Interpleader Statute g. Intervention ) Intervention of Right ) Permissive Intervention ) Caveat h. Third-Party Practice (Impleader) ) Claims for Indemnity or Contribution

10 FEDERAL JURISDICTION AND PROCEDURE ix. 2) Non-Indemnity or Non-Contribution Claims ) Severance of Third-Party Claims ) Response of Impleaded Party ) Impleading Insurance Companies i. Cross-Claims H. DUTY OF DISCLOSURE; DISCOVERY Disclosure Requirements a. Types of Disclosure Required ) Initial Disclosures a) Exemptions from Initial Disclosure Requirement ) Disclosure of Expert Testimony ) Pretrial Disclosures Discovery of Electronically Stored Data a. Format for Producing Electronic Documents b. Safe Harbor Provision Scope of Disclosure and Discovery a. In General b. Trial Preparation Materials ) Procedure for Claiming Privilege ) Inadvertent Disclosure of Trial Preparation Materials c. Experts d. Protective Orders e. Supplementation of Disclosures and Discovery Responses Types of Discovery a. Pre-Action Depositions ) Contents of Petition ) Notice and Appointed Counsel ) Court Order b. Discovery of Documents and Things; Orders for Physical and Mental Examinations ) Oral Deposition of a Witness, Including a Party-Witness a) Compulsory Appearance of Witnesses (1) Subpoena Not Needed for Parties (2) Nonparties Should Be Subpoenaed (3) Costs When Notifying Party Fails to Attend ) Deposition of Witnesses on Written Questions ) Interrogatories to the Parties ) Production of Physical Material; Inspection ) Physical and Mental Examinations a) Order for Examination b) Report of Findings ) Requests for Admission Enforcing Disclosure and Discovery a. Motion to Compel and Sanctions for Violation of Order to Compel ) Motion to Compel Disclosures and Discovery ) Sanctions for Violation of Order to Compel b. Immediate Sanction c. Automatic Sanction

11 x. FEDERAL JURISDICTION AND PROCEDURE 6. Use of Depositions at Trial or Hearing Errors and Irregularities in Depositions a. As to Notice b. As to Manner of Taking c. As to Completion and Return d. As to Form of Written Questions I. PRETRIAL CONFERENCES Rule 26(f) Conference of Parties Planning for Discovery Rule 16(b) Scheduling Conference Pretrial Conferences Sanctions J. ALTERNATIVE DISPUTE RESOLUTION Contractual Arbitration a. Procedure ) Judicial Review of Award Judicial Arbitration Mediation K. TRIAL Jury Trial Problems a. Right to Jury Trial b. Jury Trials in Diversity Cases ) Right to a Jury Trial ) Motion for New Trial Based on Excessiveness of Verdict c. Jury Size and Composition d. Jury Instructions e. Jury Verdicts ) General Verdict ) Special Verdict ) General Verdict with Special Interrogatories ) Jury Deliberations ) Erroneous Verdicts a) Correctable Errors ) Juror Misconduct Consolidation and Separate Trials Involuntary Dismissals Voluntary Dismissals a. Without Leave of Court b. With Leave of Court Summary Judgment a. Standard b. Applicable to All Civil Actions c. Time d. Partial e. Support f. Affidavits g. Nonappealability h. Relationship to Motion to Dismiss i. Relationship to Motion for Judgment on the Pleadings

12 FEDERAL JURISDICTION AND PROCEDURE xi. 6. Motion for Judgment as a Matter of Law (Formerly Directed Verdict) Renewed Motion for Judgment as a Matter of Law (Formerly Judgment Notwithstanding the Verdict ( JNOV )) Motion for New Trial a. Reasons for Granting New Trial ) Remittitur ) Additur b. Renewed Motion for Judgment as a Matter of Law with Motion for New Trial Effect of Failure to Move for a Renewed Judgment as a Matter of Law or for a New Trial Judgment on Partial Findings VIII. ATTACK ON THE JUDGMENT AT THE TRIAL COURT LEVEL A. RELIEF FROM JUDGMENT OR ORDER Clerical Mistakes Defendant Not Personally Notified Other Grounds for Relief from Judgment B. INDEPENDENT ACTION IN EQUITY TO SET ASIDE THE JUDGMENT IX. FINAL JUDGMENT AND APPELLATE REVIEW A. JUDGMENT Relief that May Be Given Judgment on Multiple Claims or Parties Final Decision on Merits May Be Valid Despite Lack of Subject Matter Jurisdiction B. TIME FOR APPEALS C. REVIEWABLE ORDER Interlocutory Orders as of Right a. Injunction b. Receivers c. Admiralty d. Patent Infringement e. Property Possession Interlocutory Appeals Act Fewer than All Claims or Parties Collateral Order Rule Orders Made Appealable (or Nonappealable) by Writ Certification of Class Actions D. STAY PENDING APPEAL Execution Enforceability Bond Injunction Order a. Power of Trial Court b. Power of Appellate Court E. SUPREME COURT JURISDICTION Court of Appeals Cases

13 xii. FEDERAL JURISDICTION AND PROCEDURE 2. Cases from Highest State Court X. EFFECTS OF JUDGMENT ON FUTURE CASES A. RES JUDICATA (CLAIM PRECLUSION) Definition Terminology Used to Describe Effect Merger and Bar Requirements for Merger and Bar Valid, Final Judgment On the Merits Same Claimant Versus Same Defendant Cause of Action a. Common Examples ) Accidents ) Installment Obligations B. COLLATERAL ESTOPPEL (ISSUE PRECLUSION) Definition Requirements a. First Case Ended in a Valid, Final Judgment on the Merits b. Issue Actually Litigated and Determined c. Issue Was Essential to the Judgment d. Due Process and Mutuality Considerations ) Against Whom Is Collateral Estoppel Used? ) By Whom Is Collateral Estoppel Used? C. RES JUDICATA AND COLLATERAL ESTOPPEL IN SPECIAL SITUATIONS Judgments for Specific Performance In Rem Judgments Quasi In Rem Judgments D. WHICH PERSONS ARE BOUND BY A JUDGMENT? Parties Are Bound Privies to Parties Are Bound Strangers May Take Advantage of Collateral Estoppel in Certain Circumstances a. Traditional Mutuality Rules b. Exceptions to Mutuality When Judgment Used as a Shield c. Exceptions to Mutuality When Judgment Used as a Sword ) Collateral Estoppel Generally Unavailable to Nonparty Plaintiffs ) Courts Should Consider Fairness to Defendant d. Present Status of Mutuality E. WHICH CHOICE OF LAW RULES APPLY TO PRECLUSION QUESTIONS? Case One Decided in State Court Case One Decided in Federal Court Under Diversity Jurisdiction

14 FEDERAL JURISDICTION AND PROCEDURE 1. INTRODUCTION This outline is designed to acquaint you with commonly tested areas within the fields of federal jurisdiction and procedure. These are: personal jurisdiction, subject matter jurisdiction, venue, discovery, pleading and motion practice, and joinder of multiple parties. A. PERSONAL JURISDICTION Personal jurisdiction refers to the ability of a court to exercise power over a particular defendant or item of property. It may be categorized as in personam, in rem, or quasi in rem. The primary limitations on a court s power to exercise personal jurisdiction are found in the United States Constitution and state statutes. B. SUBJECT MATTER JURISDICTION The subject matter jurisdiction of the federal courts is limited to that authorized by the Constitution as implemented by federal statute and decisional law. In general, it may be categorized as follows: 1. Diversity of Citizenship Jurisdiction Diversity of citizenship jurisdiction under 28 U.S.C. section 1332 is grounded historically in the desire to protect out-of-state parties from local prejudice. Its main requirement is that there be complete diversity between opposing parties. Each plaintiff must be of diverse citizenship from each defendant. Also, the amount in controversy must exceed $75, Federal Question Jurisdiction Federal question jurisdiction under section 1331 presents fewer specific difficulties. The principal problem in this area is to determine when an action arises under federal law. A secondary problem is to know what types of actions are within the exclusive jurisdiction of the federal courts under other specific statutes. 3. Removal Jurisdiction Removal jurisdiction allows defendants to remove an action brought in a state court to a federal court if the federal court would have had original jurisdiction over the action. 4. Supplemental Jurisdiction The doctrine of supplemental jurisdiction is codified under section 1367 and includes, under a single name, the concepts of ancillary and pendent jurisdiction. In any form, supplemental jurisdiction allows a federal court to entertain certain claims over which it would have no independent basis of subject matter jurisdiction, i.e., claims that do not satisfy diversity or federal question jurisdiction requirements. It is important to note that supplemental jurisdiction operates only after a claim has invoked federal subject matter jurisdiction, after the case is properly in federal court. Supplemental jurisdiction operates to bring additional claims into that case that arise from the same transaction or occurrence as the original claim, but it cannot be used to get the case into federal court in the first instance. C. VENUE Venue is the designation of the proper district in which to bring an action. Venue will depend on the nature of the jurisdiction (i.e., whether federal question or diversity of citizenship), and on the nature of the parties (i.e., whether corporate or natural persons).

15 2. FEDERAL JURISDICTION AND PROCEDURE D. DISCOVERY Discovery issues principally revolve around the scope of the examination allowed in discovery, the uses of depositions at trial, and the available methods of enforcing discovery rights. E. MULTIPLE PARTIES Multiple party questions concern whether various types of joinder are permitted under federal law and, if so, whether there is a jurisdictional basis for a particular attempted joinder. The majority of the issues that arise in this area are grounded in the interpretation or application of statutes and the Federal Rules of Civil Procedure ( Federal Rules ), and also require knowledge of subject matter jurisdictional bases, especially supplemental jurisdiction.

16 FEDERAL JURISDICTION AND PROCEDURE 3. I. PERSONAL JURISDICTION A. OVERVIEW There are two branches of jurisdiction: subject matter jurisdiction and personal jurisdiction. Subject matter jurisdiction involves the court s power over a particular type of case. Personal jurisdiction involves the ability of a court having subject matter jurisdiction to exercise power over a particular defendant or item of property. This section discusses personal jurisdiction. 1. Limitations on Personal Jurisdiction Limitations on a court s personal jurisdiction arise from two sources: state statutes and the United States Constitution. An exercise of personal jurisdiction must not exceed the limitations of either source. a. Statutory Limitations States have the power to decide over whom their courts may exercise jurisdiction. Therefore, the first place to look to determine whether the court has properly exercised personal jurisdiction is state law. If no state statute grants the court the power over the parties before the court, then the court lacks personal jurisdiction. On the other hand, an exercise of jurisdiction will not be proper merely because it comports with a state statute; it must also be within the limitations set by the Constitution (below). b. Constitutional Limitations The Due Process Clause of the Constitution places two restrictions on the exercise of personal jurisdiction. First, the defendant must have such contacts with the forum state that the exercise of jurisdiction would be fair and reasonable. Second, the defendant must be given appropriate notice of the action and an opportunity to be heard. Note that these requirements are the outer limits to which a state may reach in exercising jurisdiction over a person. A state statute cannot exceed these constitutional boundaries, but is not required to exercise the full limit of constitutional power. Thus, in evaluating jurisdiction over a person, both constitutional and statutory limitations must be considered. c. Personal Jurisdiction in Federal Courts The main jurisdictional problem in state courts arises when the defendant over whom power is sought lives in another state. Since the federal borders encompass all states, one might expect that federal courts would encounter problems of personal jurisdiction only when the defendants were foreign nationals. However, Rule 4 of the Federal Rules provides that, absent some special federal provision, each federal court must analyze personal jurisdiction as if it were a court of the state in which it is located. Thus, in nearly every case, the assessment of whether the court has personal jurisdiction over the defendant will be exactly the same in federal court as it is in state court. 2. Three Types of Personal Jurisdiction a. In Personam Jurisdiction In personam jurisdiction exists when the forum has power over the person of a particular defendant. (Jurisdiction over a plaintiff is generally not an issue because the plaintiff accedes to the court s jurisdiction by bringing suit in that court.) In these cases, the court may render a money judgment against the defendant or may order the defendant

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