CIVIL PROCEDURES - OUTLINE

I. Subject Matter Jurisdiction

The question is does the Federal Court have SMJ over an action between the P and D?
. State !ut"orit# o$ Judicia% Po&er 'JP)
!. Article III, Section 1 o the Constitution create Judicial Power in !1) Su"re#e Court and
!$)inerior courts as Con%ress ordain and establish&
(. State !ut"orit# o$ Ori)ina% Jurisdiction 'OJ*
!. Article III, Section $ o the Constitution states 'udicial Power shall e(tend to all Cases, in
)aw and *quit+, arisin% under this Constitution, the )aws o the ,nited States, and
Treaties and to Controversies between citi-ens o dierent states&
+. In order or the FC to have SMJ over an action between the P and ., the!1) Cause o Action
!C/A) #ust arise under Federal 0uestion or !$) .iversit+ o Citi-enshi"&
,. Federal 0uestion?
!. Con%ress activates so#e o the JP o Art& III, 1 $ throu%h ,&S&C 11221 3 /J o Civil C/A
arise under Constitution, the )aws o the ,nited States, and Treaties&
-. I Federal 0uestion then state. ot"er&ise state State La& CO!
/. .iversit+ o citi-enshi"&
!. Con%ress activates so#e o the JP o Art& III, 1 $ throu%h ,&S&C 1122$ 3 FC #a+ hear S)
C/A between citi-ens o dierent states and controvers+ 4 567,888 e(clusive o interest
and cost&
I. State a0ount o$ contro1ers# and i$ 2 34/5666
-. Strawbrid%e v& Curtis "rovides co#"lete diversit+ at the ti#e action is co##enced in
order to have diversit+ 'urisdiction 3 *ach Plainti #ust be diverse ro# each deendant
I& .eter#ine i co#"lete diversit+ 3 Person&
a. State on%# issue re0ained is citi7ens"i8 o$ 8arties.
b. ,se Mas v& Perr+
i& To be a citi-en o a State within the #eanin% o 1 122$, natural
"erson #ust be both a citi-en o the ,nited States and a
do#iciliar+ o that State&
ii& This deter#ination o one9s State citi-enshi" or diversit+
"ur"oses is controlled b+ ederal law, not b+ the law o an+ State&
iii& A "erson9s do#icile is the "lace o :his true, i(ed, and
"er#anent ho#e and "rinci"al establish#ent, and to which he
has the intention o returnin% whenever he is absent therero#;&
iv& The test o Mas v& Perr+ is
i. A chan%e o do#icile #a+ be eected onl+ b+ a
co#bination o two ele#ents<
. ta=in% u" residence in a dierent do#icile with
(. the intention to re#ain there&
+. State $acts o$ 0o1e to a di$$erent state.
ii. For diversit+ "ur"oses, citi-enshi" #eans do#icile> #ere
resident in the State is not suicient&
v& State ne& issue is &"et"er to re0ain&
vi& Show Intention to re#ain 3 ?ordon v& Steel
i. It is the citi-enshi" o the "arties at the ti#e action is
co##enced which is controllin%& /ne do#iciled in a
state when a suit is be%un is :a citi-en o that state
within the #eanin% o the Constitution, Art& III, Section
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ii. Proo o Intent to re#ain to "er#anentl+ is not the test&
I a new state is to be one9s ho#e or an indeinite "eriod
o ti#e, he has acquired a new do#icile&
iii. In deter#inin% whether a "art+ has intended to establish
a do#icile in the state to which he has #oved, the act
inder will loo= to such circu#stances as his
declarations, e(ercise o "olitical ri%hts, "a+#ents o
"ersonal ta(es, house o residence, and "lace o
business&
i1. It is not enou%h to intend to #a=e the new state one9s
ho#e& It is the intention at ti#e o arrival which is
i#"ortant&
1. State 9acts t"at s"o&s 8er0anent%# 0o1ed or 1ice
1ersa.
1ii. State a%ternati1e 1ie&s i$ an# o$ 0o1e.
II& .eter#ine i co#"lete diversit+ 3 Cor"oration
a. Accordin% to $C ,&S&C& 122$ sa+s citi-enshi" is "lace o incor"oration
and o the State where it has its "rinci"al "lace o business&&
i. State &"ere incor8orated.
ii. State 1arious Princi8a% P%ace o$ -usiness.
iii& Accordin% to /lsen and in the the 7
th
Circuit, In a""l+in% :total
activit+ : !TAT) test to deter#ine "rinci"al "lace o business
when deter#inin% e(istence o diversit+ 'urisdiction, two tests
co#"risin% total activit+ test are involved<
i. the :nerve centerD test, under which the state in which
the cor"oration has its nerve center, or :brain,D is its
"rinci"al "lace o business>
ii. and the :"lace o activit+D test, under which the state in
which the cor"oration carries out its o"erations is it
"rinci"al "lace o business&
iv& Accordin% to /lsen, consider all circu#stances surroundin% a
cor"oration business to discern PPE&
v& Berve Center F The ne(t question is whether a arFlun%
cor"oration F/lsen F .eter#ination o "rinci"al "lace o business
o cor"oration or diversit+ "ur"oses be%ins with %eneral rules o
co#"onent tests< when considerin% cor"oration whose o"erations
are ar lun%, sole nerve center o that cor"oration is #ore
si%niicant in deter#inin% "rinci"al "lace o business> when
cor"oration has its sole o"eration in one state and e(ecutive
oices in another> "lace o activit+ o cor"oration is "assive and
the :brainD o the cor"oration is in another state, the sites o the
cor"oration9s brain is %iven %reater si%niicance
i. E1a%uate and State &"# or &"# not: I$ not $ar-$%un)
t"en 0o1e on.
vi& Place o Activit+ F The "rinci"al "lace o business o a
cor"oration with its cor"orate headquarters in one state and its
sin%le activit+ in another will %enerall+ be in the state o its
o"erations&
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i. E1a%uate and s"o& i$ ad0in o8eration in one state. I$
not 0o1e one;
vii& TAT !7
th
Cir&) 3 The PPE o a cor"oration wG si%niicant ad#in
authorit+ and activit+ in one state and lesser e(ecutive oice but
"rinci"al o"eration in another state is %enerall+ the district o the
or#er&
i. E1a%uate and s"o&5 i$ not 0o1e on
viii& Is the cor"& a act, where sole o"eration in one state and
e(ecutive oicers in another?
i. E1a%uate and s"o&:
ii. E1a%uate i$ acti1it# is not 8assi1e and t"us a%%o&in)
ner1e center to be PP-.
iii. E;8%ain &"ere NC and brain <.
i1. E;8%ain i08ortance o$ acti1ities to o1era%% 8ur8ose.
. Use Cor8oration 1isibi%it# test and s"o&.
i;. Conc%ude T!T and &"#:
III& .eter#ine i co#"lete diversit+ 3 Insurance Cor"oration
a. Accordin% to $C ,&S&C& 122$ sa+s citi-enshi" is "lace o incor"oration
and o the State where it has its "rinci"al "lace o business&&
i. State 8%ace o$ incor8oration
ii& State PP-
b. Accordin% to $C ,&S&C& 122$ 3 in an+ direct action a%ainst the insurer o
a "olic+ where the insurer is not 'oined as a "ar+ deendant, the insurer
shall be dee#ed a citi-en o the state o which the insured is a citi-en&
i. State insured and state
c. Is insured na#e? i so
i. I$ so state and e;8%ain citi7en.
IV. Conc%usion =
a. S"o& citi7en o$ 8%ainti$$
b. S"o& citi7ens"i8 o$ De$endatn
c. Is t"ere tota% di1ersit#:
d. Is t"ere SMJ:
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