CIVIL PROCEDURE SECTIONS C & F

1. CIVIL PROCEDURE SECTIONS C & F Fall 2005 Class 6 Subject Matter Jurisdiction: Diversity and Alienage Introduction to Personal Jurisdiction

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3. Diversity: Wrap Up - Summary of Requirements • Requirement: Complete diversity of citizenship • Requirement: Amount in controversy requirement • Be familiar with 28 U.S.C. §1332 • Think about the policy aspect of diversity – though constitutionally permitted, should Congress still allow for federal diversity jurisdiction?

4. HYPO (assume amount in controversy met) • How do you determine the citizenship of a corporation for the purposes of diversity jurisdiction? • What statutory provision governs a corporation’s citizenship for this purpose?

5. CORPORATE CITIZENSHIP • For the purposes of diversity, a corporation may have 2 citizenships unlike a natural person who can only have 1 • 1. Place of incorporation • 2. Principal place of business (2 tests – NERVE CENTER, PLACE OF OPERATIONS)

6. TESTS USED TO DETERMINE CORPORATE CITIZENSHIP • 2 main tests used to determine “principal place of business” (corporation can only have one!) • 1. NERVE CENTER TEST - where is corporate policy made, where are executive/administrative functions of corporation? • 2. PLACE OF OPERATIONS TEST -where is corporation’s major production/service activities?

7. Complete Diversity

8. Complete Diversity • Chief Justice Marshall apparently regretted his decision in Strawbridge v. Curtis later in his life. • Nevertheless, it remains good law.

9. ALIENAGE HYPO (Assume amount in controversy met) • Arnold is an Austrian citizen subject domiciled in Michigan who has been admitted to permanent residence. • Does a federal court have subject matter jurisdiction over a case for a state law cause of action brought by Arnold against Jennifer, a Canadian citizen domiciled in Michigan who has been admitted to permanent residence (Assume the amount in controversy requirement is met)? • What if Arnold is domiciled in CA?

10. Americans Domiciled Abroad • Pier-Luigi is an American citizen domiciled in Paris. Can Jonathan, an American citizen domiciled in New York, invoke alienage or diversity jurisdiction to sue Pier-Luigi in federal court? • Can Jonathan rely on alienage or diversity jurisdiction to sue Pier-Luigi’s friend Marie-Louise, a French national domiciled in Paris in federal court?

11. Amount In Controversy Requirement • What is the amount in controversy requirement for diversity?

12. Amount In Controversy Requirement • St. Paul Mercury Test • Under St Paul Mercury, it must appear to a legal certainty that the P’s claim really is for less than the jurisdictional amount to justify dismissal. It must be patent on the face of the complaint that the P can’t recover the jurisdictional amount.

13. Amount in Controversy Hypo • Remi (NV) sues Camilla (ME) for breach of contract in federal district court. Remi’s complaint seeks $6,000 in actual damages and $100,000 in punitive damages. The Supreme Court of Nevada has recently ruled in that punitive damages are not available in actions for breach of contract. Assume NV law governs. Does the federal court have subject matter jurisdiction on the basis of diversity?

14. Traditional Aggregation Rules • CAVEAT: traditional rules may be superceded to some extent by supplemental jurisdiction statute • 1. P with multiple claims against the same D: e.g. Ringo sues Paul for $70,000 in federal court for personal injuries suffered in a motorcycle crash. Assume Ringo and Paul are citizens of different states. • A. Can Ringo join a claim in the same action for damage to the cycle for $15,000? Cite support. • B. What if rather than suing for damage to to bike, Ringo sues Paul for $10,000 for an unrelated breach of contract?

15. TRADITIONAL AGGREGATION RULES CONT’D • Multiple Ps sue the same D for different claims: e.g. Barbara– ME (passenger) sues George- TX (driver) in federal court for $45,000 for damages suffered in a car crash. • A. Does the federal court have diversity jurisdiction over Barbara’s claim? What if Laura- TX, also a passenger in George’s car, wants to join Dorothy as a plaintiff to sue George for $35,000 for her injuries arising from the same accident? • B. What if Barbara’s claim was for $90,000 and Laura wants to join a $35,000 claim?