Jurisdiction
When should a motion to dismiss for lack of subject matter jurisdiction be granted?
A motion to dismiss for lack of SMJ should be granted if the case does not satisfy either federal question or diversity jurisdiction.
1. ask whether the plaintiff’s well-pleaded complaint raises a federal issue.
2. If not, the court must determine whether there is complete diversity between all plaintiffs and defendants and whether the amount in controversy exceeds $75,000.
3. If neither basis is satisfied, dismissal is required.
When does the Erie doctrine apply?
When a federal court sitting in diversity must choose between applying state law or federal law because the two conflict.
When should a motion to dismiss under Rule 12(b)(6) be granted?
A Rule 12(b)(6) motion should be granted when the complaint fails to state a claim upon which relief can be granted because it is either legally insufficient (no remedy exists) or factually insufficient under the plausibility standard.
When will a court grant supplemental jdx?
When the additional claim shares a common nucleus of operative fact with the anchor claim,
exception: plaintiffs in diversity cases may not use it to defeat diversity requirements.
When does claim preclusion bar a lawsuit?
Claim preclusion applies when there is the same claim, the same parties or those in privity, and a valid final judgment on the merits in the first action, barring all claims that were or could have been raised.
How do courts determine domicile for individuals and corporations?
Domicile for individuals is determined by both physical presence and intent to remain indefinitely in that state at the time of the filing.
Domicile for corporations is both the state of incorporation and their principal place of business.
How does a court determine whether venue is proper in a federal case?
Venue is proper:
1. in any district where any defendant resides if all defendants reside in the same state
2. where a substantial part of the events or omissions giving rise to the claim occurred, or
3. for corporations, any district where the corporation is subject to personal jurisdiction as if the district were a state
What is the plausibility standard?
The court disregards conclusory allegations and determines whether the remaining factual allegations plausibly state a claim for relief
The claim must be more than merely possible but need not be probable.
What is Joinder? What is Impleader?
Joinder: When you have a valid claim against a party, you can bring as many unrelated claims against them as long as they have their own basis for SMJ. If they don't have their own basis for SMJ, ask for a supplemental jdx
Impleader: When a defendant brings in a third party defendant who is liable for some or all of the claim
How do courts define the “same claim” for claim preclusion?
Primary Rights Test (CA): Plaintiff gets a separate lawsuit for each distinct harm suffered.
Transactional (Restatement) Test (Majority): All claims arising from the same transaction or occurrence must be brought together
When is removal to federal court proper?
Removal is allowed only if
1. The federal court would have had original subject-matter jurisdiction
2. Only Defendants May Remove
3. All Properly Joined and Served Defendants Must Consent
4. Timing Requirements Are Met
Removal must occur within 30 days of service
Removal for diversity case must occur within a year of filing
In state Defendants cannot remove to fed court
What is the first step in an Erie analysis?
The court asks whether a federal statute or Federal Rule of Civil Procedure is directly on point and conflicts with state law. If so, the federal rule applies so long as it is valid.
When should summary judgment be granted?
when there is no genuine dispute of material fact and the moving party is entitled to judgment as a matter of law, viewing the evidence in the light most favorable to the non-moving party.
What is a counterclaim compulsory, and what happens if it is not raised?
What is a permissive counterclaim? What happens if there is no SMJ?
A counterclaim is compulsory if it arises out of the same transaction or occurrence as the plaintiff’s claim. If not raised, it is waived and barred in future litigation.
A permissive counterclaim is a claim unrelated to the main claim. It must have an independent basis for SMJ or it will be dismissed for lack of SMJ
When does issue preclusion apply?
when the same issue was actually litigated and determined, essential to the judgment, resolved by a final judgment on the merits, and asserted against a party from the first action
When should a motion to dismiss for lack of personal jurisdiction be granted?
A motion should be granted if the defendant lacks sufficient contacts with the forum state.
1. first consider traditional bases (service, domicile, consent).
2. If none apply, the court applies the minimum contacts test
a. ask whether the defendant purposefully availed itself of the forum
b. whether the claim arises out of those contacts, and
c. apply WWW factors (Burden on D. State’s interest. Plaintiff’s interest. System efficiency (location of witnesses, evidence).)
If no federal rule is directly on point, how does the court decide which law to apply under Erie?
It asks if applying the federal or state law affect the outcome of the case.
If applying state law would not affect the outcome, apply federal law
If applying the state law would affect the outcome, then apply state law
What qualifies as a genuine dispute of material fact?
A dispute supported by admissible evidence on which a reasonable jury could return a verdict for the non-moving party
Allegations alone do not suffice
What is the difference between upsloping and downsloping in impleader?
Downsloping allows the third-party defendant to sue the plaintiff on related claims with supplemental jurisdiction.
Upsloping allows the plaintiff to sue the third-party defendant only if independent subject matter jurisdiction exists.
What is the difference between defensive and offensive issue preclusion? What governs each?
Defensive issue preclusion is always permitted, while offensive issue preclusion is discretionary and governed by the Parklane factors.
Parklane Factors:
1. Could plaintiff easily have joined suit #1?
If no could not have easily joined then in favor of allowing issue preclusion
2. Did defendant have an incentive to litigate in lawsuit 1 fully?
If yes then in favor of allowing issue preclusion
3. Any inconsistent judgments?
4. Procedural differences between suits?
How does the effects test fit into the personal jurisdiction analysis?
Under the effects test, personal jurisdiction is proper when the defendant intentionally aimed tortious conduct at the forum state and the brunt of the harm was felt there.
Mere knowledge that the plaintiff resides in the forum is insufficient.
If no fed law is directly on point, and applying state law would affect the outcome, but there is a strong federal interest, what applies?
If the interest is from the constitution then federal law would apply
What is the key difference between Rule 12(b)(6) and summary judgment?
Rule 12(b)(6) tests the sufficiency of the pleadings, assuming facts are true, while summary judgment evaluates actual evidence developed during discovery.
When should a court grant a Rule 12(b)(7) motion to dismiss for failure to join a required party?
when a required party has not been joined and, after applying the Rule 19 analysis, the court determines the action cannot proceed “in equity and good conscience.”
The court follows three steps:
Is the absent party necessary?
A party is necessary if:
they have an interest that may be impaired if left out;
complete relief cannot be accorded without them; or
existing parties risk inconsistent or duplicative obligations.
A party is not necessary if they are merely a potential joint tortfeasor.
Is joinder feasible?
If feasible, the court must order joinder. If joinder is not feasible, proceed to step three.
Equity and good conscience analysis:
The court considers prejudice to the absent party or existing parties, whether the prejudice can be reduced by shaping relief, and whether the plaintiff has an adequate alternative forum.
If fairness weighs against proceeding, the case must be dismissed.
What are the major differences between claim preclusion and issue preclusion?
Claim preclusion = whole claim barred.
Issue preclusion = one issue barred.
Claim preclusion bars an entire claim when there is the same claim, the same parties (or those in privity), and a final judgment on the merits, preventing any claims that were or could have been brought in the first action.
Issue preclusion bars relitigation of a specific issue when that issue was actually litigated and determined, essential to a final judgment on the merits, and asserted against a party to the prior action; it may be used defensively as of right and offensively only if the Parklane factors are satisfied.