Federal Jurisdiction and Procedure

Class Action

A class action is proper if: i. ii. iii. iv. Class is so numerous that joinder of all members is impracticable; There are questions of law or fact common to the class; Named parties interests are typical to the class; Named parties will adequately represent the interests of the absent members of the class; AND ONE of the following situations is present: a. Separate actions would create a risk of inconsistent results or impair the interest of unnamed parties; b. D has acted or refused to act on grounds applicable to the class and injunctive or declaratory relief is appropriate for the class as a whole; OR c. Common questions of law or fact predominate over individual issues and a class action is superior to alternate methods of adjudication

v.

Class Action Fairness Act

Under the CAFA, SMJ is established if: i. Any class member is of diverse citizenship from any D; ii. The amt in controversy in the aggregate exceeds $5 million; AND iii. There are at least 100 members in the proposed class or classes. Any defendant may remove the case from state to fed ct. No Fed Ct J under CAFA if the primary D are govt entities or over a class action that solely involves a claim under federal securities law or that relates to the internal affairs of a corp and is based on the laws of the state of incorporation.

Local Considerations Under CAFA

CAFA provisions designed to defeat fed J in class actions that are relatively local in nature. Mandatory Decline of J: A district ct MUST decline J provided by CAFA if: (i) more than 2/3 of the members of the class are citizens of the state in which the action was filed; (ii) a defendant from whom significant relief is sought is a citizen of that state; and (iii) the principal

injuries were incurred in the state in which the action was filed. Note: A ct may decline J if between 1/3-2/3 of class are citizens of the state in which the action was filed and the primary Ds are also citizens of that state. Ct looks at whether: (i) claims are of national interest; (ii) claims will be governed by the state law in which it was filed; and (iii) states distinct nexus w/ class members, the alleged harm, or the Ds.

Interpleader

An interpleader suit is instituted by a person in the position of a stakeholder to require the adverse claimants to determine which has the valid claim to the stake. It applies if separate actions might result in double liability against the stakeholder. Grounds for Interpleader: 2 grounds Mnemonic: Rule 22 interpleader must follow the Regular Rules; Statutory interpleader has Special, Simpler Standards i. Rule 22 interpleader requires (i) complete diversity betw stakeholder and all adverse claimant and in excess of $75K in issue, or (ii) a fed question claim. Normal service and venue rules apply. ii. The Federal Interpleader Statute permits J where the amt in controversy is $500 or more and where theres diversity between any two contending claimants. Service may be nationwide and venue is proper where any claimant resides.

Required Disclosures

3 types of disclosure are required: initial disclosures, disclosures of expert testimony, and pretrial disclosures

Initial Disclosures

A party must provide to other parties within 14 days after the Rule 26(f) conference of the parties (unless a diff time set by ct order or by stipulation): i. Names, address, and phone #s of individuals likely to have discoverable info that the disclosing party may use to support claims or defense, unless solely for impeachment; ii. Copies or descriptions of documents, electronically stored info, and tangible things that are in the disclosing partys possession that the disclosing party may use, unless solely for impeachment; iii. A computation of damages claimed by the disclosing party and copies of materials upon which its based; AND iv. Copies of insurance agmts under which an insurer might be liable for all or part of any judgment that might be entered

Disclosure of EXPERT TESTIMONY

A party must disclose to the other parties the identities of expert witnesses expected to be used at trial. This disclosure generally must be accompanied by a report prepared and signed by each expert witness stating qualifications, the opinions to be expressed, and the basis for those opinions. Disclosure must be made at the time directed by ct OR, in the absence of direction, at least 90 days before trial. If evidence is intended solely to rebut another partys disclosure of expert testimony, it must be made w/in 30 days after disclosure of the evidence being rebutted.

Pretrial Disclosures

At least 30 days before trial, a party must disclose the witnesses she expects to call at trial, the witnesses she will call if the need arises, witness testimony to be presented by means of deposition and a transcript of pertinent portions of the deposition, and a list of doc or exhibits she expects to offer.

Method of Enforcing Disclosure and Discovery

(1) Motion to Compel and for Sanctions: If a party fails to provide or provides incomplete disclosure or discovery, the other party may move to compel discovery. If a party fail to comply with an order to provide discovery, the ct may: (i) order the matters to be treated as admitted; (ii) prohibit the party from supporting or opposing designated claims or defenses; (iii) strike pleadings, stay or dismiss the action, or render default judgment; or (iv) hold the delinquent party or witness in contempt. (2) Immediate Sanction: If a party fails to attend his own deposition OR fails to provide any answers to interrogatories, a party may move for immediate sanctions. The ct may make such orders in regard to the failure as are just. (3) Automatic Sanction: Rules provide for automatic sanctions against a party who w/o substantial justification fails to disclosure info a req under Rule 26, or who fails to supplement or amend discovery responses. The party who fails to make required disclosures may not use the info w/held as evidence unless such failure was harmless.

Limitations on Personal Jurisdiction

Limitations can arise from 2 sources: (1) state statutes and (2) DPC of US Constitution

Constitutional Limitations on PJ

DPC places 2 restrictions on PJ: (1) D must have such contacts w/ the forum state that the exercise of J would be fair and reasonable. (2) D must be given appropriate notice of the action and an opportunity to be heard.

Constitutional ANALYSIS of In Personam PJ

TEST: D must have such minimum contacts with the forum so the exercise of PJ does not offend traditional notions of fair play and substantial justice. Factors in the constitutional analysis: (1) CONTACT - The contact must result from purposeful availment (i.e. Ds voluntary act) - Foreseeability: D must know or have reasonably anticipated that her activities in the forum render it foreseeable that she may be sued in the forum. (2) FAIR PLAY AND SUBSTANTIAL JUSTICE (fairness). Cts will look at: - Relatedness between contact and the claim i.e. whether Ps claim arises from Ds contact with the forum. If D has a small amt of contact w/ the forum, the ct will have specific J, i.e. in personam J over D will be proper only for causes of action arising from that in-state activity. If D engages in systematic and continuous activity in the forum state, ct may have general J, i.e. in personam J for any cause of action against D, whether the cause of action arose from the in-state activity or from activity outside the state. - Convenience: Forum is valid unless it places D at a severe disadvantage in the litigation. - States interest in providing forum for its citizens

Diversity of Citizenship Case Reqs

2 reqs: (1) The action must be between citizens of different states (or betw a citizen of a state and a foreign citizen (alien); AND (2) The amount in controversy MUST exceed $75,000 Exceptions: Even if these diversity reqs are met, fed cts will not issue divorce, alimony, or child custody decrees or probate estates.

Complete Diversity Rule

Every plaintiff must be of diverse citizenship from every

defendant.

Citizenship of an INDIVIDUAL

Citizenship of a natural person is the state of her domicile at the time the case is filed. Domicile is established by: (1) Presence in state AND (2) Intent to make it her permanent home. Note: Individuals always have a domicile, but ONLY one.

Citizenship of a Corporation

Citizenship of a corporation is (1) the state where incorporated AND (2) the one state where the corporation has its principal place of business (PPB). PPB is where the managers direct, control, and coordinate corporate activities. Note: Corporations, unlike humans, can have TWO citizenships.

Citizenship of Decedents, Minors, or Incompetents

Citizenship of decedents, minors, or incompetents is the state of their citizenship, NOT the citizenship of their representative.

Rules for Amt in Controversy Req

In addition to the complete diversity rule, Ps good faith claim must exceed $75K (not counting interest on the claim or costs of litigation) If P has two or more claims, she can aggregate the claims (in a one P v. One D situation) to meet the amt req. For JOINT claims, the amt in controversy is the total value of the claim

Determining Amount in Controversy where P seeks EQUITABLE RELIEF

Where P seeks an injunction (instead of money damages), 2 tests cts look at: (1) Plaintiffs VIEWPOINT i.e. look at the issue from Ps viewpoint and ask what the value of the harm caused by D; and (2) Defendants VIEWPOINT i.e. look at the issue from Ds viewpoint and ask what would it cost D to comply with the injunction if it were ordered. Some cts will conclude that amt in controversy req is satisfied if the amt under either test exceeds $75K.

Reqs for FEDERAL QUESTION Cases

Complaint must show a right or interest founded substantially on a federal law (i.e. fed constitution,

legislation). Ps claim must ARISE UNDER federal law (i.e. P is trying to enforce a federal right)

Effect of Having Diversity or FQ

Diversity and FQ can get a case into fed ct. Once its there, there may be additional claims in that case. Note: For every single claim, test whether it invokes diversity or FQ. If it does, it can come into the case. If it does not, see if supplemental jurisdiction can apply after the case is already in fed court. SJ cannot be applied to get a case into fed ct.

Supplemental Jurisdiction

Test: The claim we want to get into fed ct must share a common nucleus of operate fact with the claim that invoked the fed SMJ. This test is ALWAYS met by claims that arise from the same transaction or occurrence (T/O) Limitation: P cannot use SJ to overcome a lack of diversity in a DIVERSITY case. (But can be used to overcome lack of diversity in a FQ case or a lack of amt in controversy for a diversity case. Discretionary Factors: Ct has discretion to NOT hear a supplemental claim if: (1) the FQ is dismissed early in the proceedings; (2) the state law claim is complex; or (3) state law issues would predominate.

Venue

Local Actions: Actions about ownership, possession, or injury (including trespass) to LAND must be filed in the district where the land lies. If it Is not a local action, it is transitory. Transitory Cases: In any transitory case (diversity or FQ), P may lay venue in ANY DISTRICT where: (i) ALL Ds reside; OR (ii) A substantial part of the claim arose Note: If all Ds reside in different districts of the SAME state, P can lay venue in the district in which ANY of them resides.

Venue Reside

Humans: For venue purposes, humans reside in the district where they are domiciled (i.e. citizenship) Corporations: Corps and other business associations reside in all district where they are subject to PJ when the case is filed.

Venue Transfer

A fed district ct may transfer a case to another fed district

ct that is a (i) proper venue; and (ii) has PJ over D. (i.e. can be transferred to a district where the case could have been filed). If venue in original district is proper, that ct has discretion to transfer to another fed ct based on convenience for the parties and witnesses (where are the witnesses and evidence located)and the interests in justice (what law applies, what community should be burdened with jury service, keeping local controversy in local ct). If venue in the original district is improper, ct may transfer in the interests of justice or dismiss.

Service of Process

In addition to PJ, notice must be given to D. This is done by delivering process to D, which includes (1) a summons (formal ct notice of suit and time for response) AND (2) a copy of the complaint. Any nonparty who is at least 18 years old can serve process.

How to Serve Process

5 methods: (1) Personal Service (2) SUBSTITUTED SERVICE process that is left with someone other than D is permitted if service: - Ds usual abode; and - Process is served to someone of suitable age and discretion who resides there (i.e. thus, serving babysitter is NO good) (3) Service on Ds agent as long as receiving service is w/in the scope of agency (4) State law can use methods of service permitted by state law of the state where the fed ct sits OR where service is effected (5) Waiver by Mail: Process: (1) Mailing D a copy of the complaint and 2 copies of a waiver form, w/ a prepaid means of returning the form; (2) D executes and mails the waiver to P w/in 30 days, (3) P files the waiver in ct (this makes waiver EFFECTIVE). Note: If D does not return the waiver form and does not have good cause for such failure, D must pay the cost of service. Note: Fed ct can serve process outside the state in which it sits ONLY if a state law allows (i.e. a long-arm statute)

Rule 11

Rule 11 requires an attorney to sign all pleadings, written motions, and papers (but NOT discovery documents),

which constitutes his certification that to the best of his knowledge and belief, after reasonable inquiry: (1) The paper is not for an improper purpose; (2) Legal contentions are warranted by law; and (3) That factual contentions and denials of factual contentions have evidentiary support (or are likely to after further investigation) This is a continuing certification, i.e. the certification is effective every time the position is presented to the court (at signing, at filing, when later advocating a position) Violation of Rule 11 may result in sanctions levied (they are discretionary) against attorney, firm, or party for the purpose of deterring a repeat of bad conduct. Sanctions can be monetary or non-monetary and are usually paid to the ct, not to the other party. Before imposing sanctions, ct must give party a chance to be heard. - Procedure: If the other party violates Rule 11, cannot move for sanctions right away. Rather, a motion for violation of Rule 11 is served on the other parties but not filed w/ ct. The other party must be given 21 days to w/draw the document or fix the problem. If she does, no sanctions, If she doesnt, then the motion can be filed. Cts may also raise Rule 11 problems as long as it gives the party a chance to be heard.

Complaint

The filing of the complaint commences an action. 3 Reqs for Complaint: (1) Stmt of grounds of SMJ; (2) Short and plant stmt of the claim, showing entitled to relief; and (3) Demand for relief sought. Note: In stating the claim, the party must plead facts supporting a plausible claim. If the claim pleaded involves fraud, mistake, or special damages, it must be pleaded with particularity or specificity.

Ds Response

Rule 12 requires D to respond either: (1) by motion or (2) by answer. To avoid default, D must respond w/in 21 days after service of process.

Ds Response by MOTION

Types: Motion for More Definite Stmt pleading so vague that D cant frame a response;

Motion to Strike which is aimed at immaterial things (i.e. demand for jury when no right exists) MOTION TO DISMISS: Based on any of the RULE 12(B) DEFENSES: (1) Lack of SMJ; (2) Lack of PJ; (WAIVABLE) (3) Improper venue; (WAIVABLE) (4) Insufficiency of process (problem w/ the papers); (WAIVABLE) (5) Insufficient service of process; (WAIVABLE) (6) Failure to state a claim; (7) Failure to join indispensible party. NOTE: These defenses can be put EITHER by motion OR by answer. WAIVABLE DEFENSES MUST BE PUT IN THE FIRSTRULE 12 RESPONSE (MOTION OR ANSWER) OR ELSE THEYRE WAIVED - Defenses of Failure to join indispensible party and failure to state a claim can be raised ANY TIME THROUGH TRIAL. Defense of Ct lacks SMJ can NEVER be waived, thus can be asserted AFTER trial.

Answer

Reqs: (1) Respond to allegations of complaint: Make 1 of 3 responses: (i) admit; (ii) deny; or (3) state that you lack sufficient info to admit or deny (this acts as a denial, but cannot be used if info is public knowledge or is in Ds control). - Failure to deny can constitute an admission on any matter except damages (2) Raise AFFIRMATIVE DEFENSES: If not pled in answer, may risk waiver. Common defenses include: SOL, SOF, res judicata, self-defense