Business Law: Key Rulings and Jurisdiction Issues

Rules of Civil Procedure for the United States District Courts

• FRCP = Federal Rules of Civil Procedure = applies to federal courts
• Jurisdiction is a key requirement for a court to entertain an action and issue a valid judgement.
• Personal jurisdiction allocates judicial power among the states.
• Subject-matter jurisdiction allocates power between the federal and state court systems. Federal courts have limited subject-matter jurisdiction, mainly on diversity and federal question cases.
• Diversity cases = disputes between citizens of different states.
• Federal question cases = disputes arising under federal law.
• Venue: the appropriate district in which a case should be filed. It is determined by the type of case in the federal system.
• Venue Statute in 28 U.S. Code § 1391
• Full Faith and Credit Clause = "full faith and credit shall be given in each state to the public acts, records, and judicial proceedings of every other state."

Jurisdiction Definitions

• Personal Jurisdiction → allocates judicial power among the states.
• Subject-matter Jurisdiction → allocates power between federal and state court systems.
• Federal courts have limited subject-matter jurisdiction by constitutional and statutory provisions, mainly for diversity and federal question cases.

Venue

• The appropriate judicial district in which the case may be filed within the federal system.
• Venue statute 28 U.S.C. § 1391
• Full Faith and Credit Clause → "full faith and credit shall be given in each state to the public acts, records, and judicial proceedings of every other state." (Article IV, § 1) "Judicial proceedings of any court…shall have the same full faith and credit...” (28 U.S.C § 738)

Challenging Personal Jurisdiction

• A motion, a least favored defense.
• Requirements for asserting PJ include:
  • Statutory Basis → the state's long arm statute
  • Constitutional Basis → compliance with the Due Process Clause of the U.S. Constitution.
• Minimum Contacts
• Purposeful Availment
• Nexus -Reasonableness

Power Theory (Traditional)

• Based on the physical presence of the defendant or their property.
• No tribunal can extend its process beyond that territory so as to subject either persons or property to its decisions. (From Pennoyer v. Neff).

Jurisdiction Types

• In Personam Jurisdiction (Presence/Served, Domicile, Consent)
• In Rem Jurisdiction (Attachment of land)
• Quasi in rem Jurisdiction (Attachment of movable propery)

Overview of Pleadings and Motions

• The complaint lays out the details of a claim.
• The answer is the defense to these claims.
• Other pleadings (e.g., counterclaims, crossclaims) may further expand the scope of a case.
• Motions are requests to the court for specific orders (eg. dismissal, summary judgment).

Rule 11

• Rules about frivolous, bad faith pleadings, motions or other filings in the court
• Sanctions can be imposed if these rules are violated.

Rule 12

• Defendant's options when responding to the complaint (12(b) pre-answer motions).
• Defenses to jurisdiction disputes (e.g., subject matter, personal, venue, insufficient process.)
• Rules for motions to strike, or for clarify about the issues. (12(c), 12(d), 12(e), 12(f)).
• Timing of objections: Most objections need to be made in the first response to the complaint, or they are waived.

Rule 13

• Counterclaims: claims by a defendant against a plaintiff.
• Crossclaims: claims by one defendant against another in the same suit.
• The difference and implications of their use.

Rule 14

• Third-party practice (impleader): when a defending party wants to join a nonparty to the case to address liability.
• Parties in litigation.

Rule 15

• Amending pleadings
• Amendment by right, or with the court's permission.
• When do the amendments relate back to the date of the original pleading?

Rule 16

• Pretrial conferences
• Scheduling order.

Rule 18

• Joinder of claims.
• A party may join any additional claims against the same opposing party.

Rule 19

• Required Joinder of Parties → persons who have not been named as parties, but are necessary for a just adjudication of the dispute (e.g. persons with an interest).

Rule 20

• Permissive Joinder of Parties → allowing multiple plaintiffs or defendants to be joined if
• Their claims arise from the same transaction or occurrence, and involve common questions of law or fact.

Rule 21

• Misjoinder and Nonjoinder → court may add or drop parties and/or sever claims at any time.

Rule 23

• Class Actions → allows a representative party to bring claims on behalf of a large group of similar parties if joinder is impractical and the required elements are met.
• Prerequisites for a class action: (a) numerosity, (b) commonality, (c) typicality, (d) adequacy of representation, & (e) appropriate class treatment.
• Distinguish class cases from typical joinder cases, and from Multidistrict Litigation (MDL).

Multidistrict Litigation (MDL)

• 28 U.S. Code § 1407.

###Rule 26

• Procedures and scope for discovery
• Privileges and burdens concerning the scope (26(b)(1))
• Electronic discovery
• Procedures about information, documents, and material things (26(b)(1)); how to handle discovery in cases concerning information contained in an electronically stored format (ESI).

Rule 27-37

• Other discovery rules, including depositions, interrogatories, document requests, and requests for admission, their timing, exceptions, and procedural protections.

Rule 28

• Jurisdiction based on diversity of citizenship; in the context of subject matter jurisdiction, requirements and exceptions.
• Citizenship is determined at the time the complaint is filed, not at the time the original claim arose.

Rule 29

• Stipulations about discovery procedure; rules that allow the parties to make stipulations for ease of discovery processes.

Rule 30

• Discovery by oral examination

Rule 31

• Discovery by written questions.

Rule 32

• Using depositions in court proceedings.

Rule 33

• Interrogatories
• Limits on number, time for response.

Rule 34

• Producing documents, electronically stored information, or tangible things; entering onto land; limits and exceptions.

Rule 35

• Physical and mental examinations
• When they can be ordered.

Rule 36

• Requests for admission
• How does the procedure work?

Rule 37

• Failure to make disclosures or to cooperate.
• Sanctions for failure to comply with discovery rules.

Rule 41

• Dismissal of actions
• Voluntary and involuntary dismissals
• Time constraints / notice requirements

Rule 42

• Consolidation of actions

Rule 45

• Subpoenas

Rule 49

• Special verdicts and general verdicts
• Jury's instructions

Rule 50

• Judgment as a matter of law (JMOL), including
  • Timing
  • Reasons and circumstances.
  • Appellate procedure
  • The burden of proof
• Distinction bewteen summary judgment and JMOL

Rule 51

• Jury instructions
• Preserving error.

Rule 52

• Findings and conclusions by the court and judgement on partial findings

Rule 54

• Judgment

Rule 55

• Default judgment
• Procedures related to default judgment.

Rule 56

• Summary judgment
• Burden of proof, standard for the motion, how is the court supposed to weigh evidence in determining there is no genuine dispute of material fact?

Rule 59

• New Trial.
• What's the different between rule 59(a)(1) and 59(a)(2)?
• Timing and procedures related to motions for a new trial.
• The differences between rule 59 (new trial) and 50 (judgment as matter of law)

Rule 60

• Relief from a judgment or order

Rule 61

• Harmless error

Rule 64

• Securing the judgment
• Prejudgment remedies.
• Examples of securing the judgment.

Rule 65

• Injunctions and restraining orders

Rule 66

• Interlocutory injunction

Role of Judicial Officer

• Discuss the role of a judicial officer in a lawsuit.

Explore the critical legal concepts regarding business jurisdiction and influence as demonstrated in significant court cases. This quiz delves into rulings on Ford's business activities and the implications of unilateral actions, as well as the key factors influencing jurisdiction decisions in cases like Hanson v. Denckla.