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Questions and Answers
B3 applies if a defendant resides somewhere in the United States.
False
A substantial part of the event must arise somewhere in the United States for B3 to apply.
True
What happens if a co-defendant does not reside in the United States?
Venue must be proper as to that defendant.
In which district can a plaintiff sue if the only defendant is a foreign residing defendant?
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If venue is proper in one district under B1 and in a different district under B2, may the plaintiff choose either district?
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Is venue proper in the District of Vermont if the plaintiff sues the defendant who lives there while attending college?
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Where would venue be proper if the defendant is a permanent resident alien domiciled in the Eastern District of New York?
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Can the plaintiff use both state and federal venue statutes?
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All entities are treated the same for venue purposes.
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If Car, Inc. is incorporated in Delaware and has its principal place of business in the Western District of Michigan, where is venue proper?
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What is the one-year limit applicable to diversity removal cases?
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A case can be removed if a non-diverse defendant is dropped from the case voluntarily.
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What happens if a plaintiff stipulates before removal that they will not seek more than $75,000?
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If the plaintiff's complaint alleges an excess of ______, the case can be removable.
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What is the primary reason subject matter jurisdiction is never waived?
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A party can raise subject matter jurisdiction in a collateral attack if it was litigated in the first action.
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In personal jurisdiction, can a party collaterally attack if they default entirely?
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What are the four requirements for a valid final judgment?
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What is the purpose of venue rules?
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What are the two types of venue mentioned?
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In federal court, where can a civil action typically be brought?
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Personal jurisdiction is related to geography.
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What does section 1391B of the U.S. Code cover?
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If a case has been removed from state to federal court, does 1391B apply?
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What term is used to describe the concept of where a substantial part of the events giving rise to the claim occurred?
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The federal judicial system is divided into __ federal judicial districts.
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What is a proper venue in cases involving multiple defendants from different states?
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A defendant can be sued in any judicial district they are subject to personal jurisdiction.
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Study Notes
Removal Jurisdiction
- A case can become removable if a non-diverse defendant or in-state defendant is dropped from the case, assuming this occurs within the one-year limit for removal in a diversity case.
- This rule applies when a plaintiff voluntarily dismisses the defendant (e.g. settlement).
- Removal is not permissible if a defendant is involuntarily dismissed (e.g. due to a lack of personal jurisdiction). This is because the defendant could potentially be reinstated on appeal.
- When a plaintiff stipulates the amount in controversy is below $75,000, this will prevent removal.
- However, a stipulation after removal will not prevent federal jurisdiction, as the removability of the case is determined at the time of removal.
Fraudulent Joinder
- Fraudulent joinder is when a plaintiff adds a non-diverse defendant to defeat removal, without a legitimate claim against them.
- Courts will ignore the presence of a fraudulently joined defendant and allow removal.
Subject Matter Jurisdiction
- Federal courts lack subject matter jurisdiction in cases where the plaintiff is concealing citizenship or lying about it.
- Subject matter jurisdiction can be raised by anyone, including the court, even at later stages of the proceedings.
- A party cannot collaterally attack subject matter jurisdiction if they lost on this issue in the initial action (similar to the Baldwin case for personal jurisdiction).
- A party cannot collaterally attack subject matter jurisdiction if they litigated the merits of the case without raising the issue. This is because federal courts are empowered to determine their own jurisdiction (Chico County case)
- Collaterally attacking subject matter jurisdiction in a case where a party defaulted is murky but generally not allowed.
Venue
- Venue is determined based on the convenience of parties and witnesses, and the allocation of the workload of the federal judicial system.
- Venue is not a constitutional requirement like personal jurisdiction, subject matter jurisdiction, and notice.
- Venue is about geography within the federal court system, similar to how personal jurisdiction is about geography within a state.
Venue
- Venue specifies the geographic location where a lawsuit can be filed
- Venue rules are governed by statutes and not the US Constitution
- The general venue statute is 28 U.S.Code Section 1391
Venue Requirements
- Venue can be proper in multiple judicial districts
- Venue requirements focus on:
- Where defendants reside
- Where a substantial part of the events related to the claim occurred
Venue Proper?
- Venue is proper when a case can be properly filed in a specific judicial district
Change of Venue
- Change of venue is a separate topic and allows shifting a case from one judicial district to another
1391B
- 1391B dictates where venue is proper
- 1391B1: Focuses on residential venue
- Venue is proper where any defendant resides, but ONLY if all defendants reside in the same state
- 1391B2: Focuses on transactional venue
- Venue is proper where a substantial part of the events giving rise to the claim occurred, or where substantial part of the property in question is located; applies primarily to non-real estate (NREM) claims
1391B3
- 1391B3: Deals with scenarios where no venue is proper under 1391B1 or 1391B2
- Venue is proper in any district where defendants are subject to personal jurisdiction
1391C
- 1391C defines "residence" for venue purposes:
- Natural persons (including permanent residents of the US): Reside where domiciled
- Entities: Reside in any judicial district where they are subject to personal jurisdiction
Venue for Entities
- 1391C considers both:
- General personal jurisdiction: Jurisdiction based on entity’s general activities in a state
- Specific personal jurisdiction: Jurisdiction based on entity’s specific actions giving rise to the lawsuit
Finding Proper Venue
- Venue can be proper in multiple districts under 1391B1 and 1391B2
- Venue is not hierarchical. Any district meeting the requirements of 1391B1 or 1391B2 is a proper venue
Foreign Defendants
- Foreign defendants residing outside the US can be sued in any judicial district
- Venue is still determined based on US residing defendants (location of residence or where events occurred)
- Venue for foreign defendants can be proper even if venue is not proper for co-defendants
- If the only defendant resides outside the US, venue is proper in any judicial district, but personal jurisdiction must still be established
Planning Problem
- Plaintiffs' attorneys plan lawsuits considering subject matter jurisdiction, personal jurisdiction, and venue
Removal from State Court to Federal Court
- 1391B does not govern venue in cases removed to federal court
- Venue for removed cases is limited to the district where the state court lawsuit originated
Venue
- For venue purposes, residence means domicile for an individual.
- Venue is separate from personal jurisdiction.
- A defendant can be sued in their domicile in the Eastern District of New York because there's personal jurisdiction and venue
- A defendant can be sued in the district where a substantial part of the event giving rise to the claim occurred
- A defendant cannot be sued in Massachusetts if they are only voluntarily present there doing business.
Venue for Permanent Residents
- A permanent resident alien domiciled in the United States can be sued in the district where they are domiciled.
- A defendant who is a citizen of France, domiciled in France, can be sued in any district in the United States.
Venue for Corporations
- A corporation can be sued in the district where they are incorporated or where their principal place of business is located.
- A substantial part of the events giving rise to the claim may qualify both as residential venue and transactional venue.
- A corporation can be sued in any state where they have registered to do business and signed a Mallory-type consent.
- A corporation may be subject to personal jurisdiction and venue in a state where they have a significant presence, even if their principal place of business is in another state.
- Venue is not determined on a district-by-district basis.
- The federal venue statute applies, not state venue statutes.
Other Points
- Venue is a procedural issue, while substantive law is determined by the state in which the federal court sits.
- When deciding venue, all entities are treated the same, regardless of whether they are a corporation, partnership, or unincorporated business.
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Description
This quiz covers key concepts related to removal jurisdiction and fraudulent joinder within civil procedure. Explore how the presence of defendants can affect the procedural landscape of a case, and learn about the implications of voluntary and involuntary dismissals. Test your understanding of these important legal principles.
