Civil Procedure

Personal Jurisdiction
Personal jurisdiction refers to the power of the court to exercise power of a particular defendant
or item of property. In personam jurisdiction requires that the defendant have minimum contacts
with the forum such that the exercise of jurisdiction would be fair and reasonable.

Subject Matter Jurisdiction

Federal courts have subject matter jurisdiction over controversies involving diversity of
citizenship and federal questions.

Diversity of Citizenship
The action must be between citizens of different states (or between a citizen of a state and
a foreign citizen) and the amount in controversy must exceed $75,000. There is a requirement
for complete diversity- meaning that each plaintiff must be a citizen of a different state from each
defendant in the action. Diversity of citizenship must exist when the suit is commenced.

Citizenship
Citizenship of an individual is determined by the state of her domicile. Domicile is
established by two factors: i) physical presence in the forum, and ii) a subjective intent to make
the forum the individual’s permanent home.

A corporation is deemed a citizen of every state of its incorporation, and also of its
principal place of business. The Court’s have applied a “nerve center” and “muscle center” test
to determine a corporation’s principal place of business. The nerve center is the home office
where the majority of the decisions are made, while the muscle center is the state where most of
the corporation’s activities take place.

Unincorporated Associations
For diversity purposes, an unincorporated business entity is deemed to be a citizen of
each state of which any member is a citizen.

Minors, Decedents, or Incompetents

The legal representative of the decedent of an estate is deemed to have the same
citizenship as the decedent, minor, or incompetent.

Amount in Controversy
In addition to meeting the diversity of citizenship requirement, the plaintiff must have a
good faith allegation that her claim exceeds $75,000, exclusive of interest and costs. If the
plaintiff receives an award that is less than $75,000, she may be required to pay the defendant’s
litigation costs.

Aggregation
For purposes of meeting the jurisdictional amount, a plaintiff may aggregate her claims
against a single defendant. A plaintiff who has an action against several defendants may
aggregate her claims to reach the jurisdictional amount only if the defendant’s are jointly liable
to the plaintiff.

Equitable Relief
As far as meeting the threshold amount for diversity jurisdiction is concerned, the courts
will accept the plaintiff or defendant’s viewpoint to establish the amount in controversy.

*Even if the requirements for diversity jurisdiction are met, a federal court will not hear
actions involving issuance of a divorce, alimony, or child custody decree OR probate an
estate.*

Federal Question
The federal courts have jurisdiction over all civil actions arising under the Constitution, laws, or
treaties of the United States. The complaint must allege the enforcement of a right founded
substantially on federal law.

Supplemental Jurisdiction
The court may hear an additional claim in a case if it arises out of the “same nucleus of operative
facts” as the underlying claim that invoked subject matter jurisdiction. The claim must arise out
of the “same transaction or occurrence.”

Limitation
The plaintiff may never overcome a lack of complete diversity in a diversity case through
the use of supplemental jurisdiction.

Removal
Removal allows the defendant to remove a case filed in state court to a federal court with subject
matter jurisdiction within the district embracing the state court. Defendant must move for
removal no more than 30 days after service of the first removable document.

Special Rule: If the case is based on diversity, the case may not be removed if any defendant is
a citizen of the forum where the case is filed. Also, a diversity case may not be removed more
than one year after the case was filed in state court.

A defendant who files a permissive counter-claim in federal court probably waives the right to
remove; however, the filing of a compulsory counter-claim does NOT waive the right.

Erie Doctrine
In a diversity case a federal court must apply state substantive law.
Substantive law is: i) the elements of a claim/defense, ii) statute of limitations, iii) rules for
tolling the statute of limitations, and conflict/choice of law rules.

-If there is a federal law on point that directly conflicts with state law- the federal law
governs under the Supremacy Clause.
Venue
Venue is proper in i) any district in which any defendant resides, if all defendant’s reside in the
same state, ii) any district in which a substantial part of the events or omissions giving rise to
the claim took place.

Residence
An individual’s residence for federal venue purposes is determined by their domicile. A
corporation is deemed to reside in any district in which it is subject to personal jurisdiction when
the case is filed.

The court may transfer the case to a different venue for the convenience of the parties to any
court where the action could have originally been filed- the forum must have personal and
subject matter jurisdiction. The standard for transfer is “in the interests of justice.”

Service of Process
The plaintiff must give notice of the claim by serving process (i) a formal summons, and (ii) a
copy of the complaint, within 120 days after filing the lawsuit. Any nonparty who is at least 18
years old may serve process.

Personal service= papers may be served on defendant anywhere in the forum

Substituted service= process is left at defendant’s usual place of abode, with someone of suitable
age or discretion who resides there.

Agent service= process delivered to appointed agent (by contract or by law) or a corporation’s
registered agent, managing agent, or officer.

State law= in federal court, service is permitted by state law of the state where the federal court
sits or where service is effected.

Waiver by Mail= plaintiff may mail process to defendant by first class mail. If defendant returns
waiver form within 30 days, formal service of process is waived. If she fails to return the
waiver, she may be liable for the costs associated with formal service.

Geographic limitation- serving process outside of the forum is permissible if state law allows-
long-arm statute.

Immunity- federal court will not allow service of process on a defendant who is temporarily in
the forum to be a witness or party to another civil action.

Pleadings
Pleadings are formal documents setting forth claims or defenses. The federal courts only require
“notice” pleading- plaintiff must supply enough information to allow defendant to make a
reasonable response.
Rule 11
Rule 11 requires the attorney to sign all pleadings, written motions, and papers certifying that: i)
the paper is not for an improper purpose, ii) the pleading is warranted by existing law or a non-
frivolous argument for a change in the law, and iii) the factual contentions have evidentiary
support (or are likely to upon further discovery).

Rule 11 sanctions may be imposed against the party, attorney, or firm and are designed to deter
bad conduct. Before imposing sanctions, the court must provide an opportunity to be heard.

A motion for Rule 11 sanctions is served on the other party, but is not immediately filed with the
court because the violating party has a 21 day safe harbor period to withdraw the offending
paper or correct the problem. Court may raise “sua sponte” for which safe harbor does not
apply.

Complaint
Plaintiff’s complaint requires i) statement of subject matter jurisdiction, ii) a short and plain
statement of the claim, and iii) a demand for relief. Plaintiff must plead facts supporting a
plausible claim.

Fraud, Mistake, or Special Damages must be pleaded with specificity/particularity.

Defendant’s Response
Defendant may respond to the complaint by motion or answer.

Rule 12(b) defenses- i) lack of subject matter jurisdiction ii) lack of personal jurisdiction, iii)
improper venue, iv) insufficiency of process, v) insufficient service of process- must all be
raised by motion or answer in the defendant’s FIRST response or else they are WAIVED.