Understanding Personal Jurisdiction and Subject Matter Jurisdiction in Civil Procedure, Exams of Civil procedure

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Exam Name: (^) CivPro_LS2_Lund_FinaU2012Fl4. ................. .................. ..... ........ ~~~ent[AU1J: 34/

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1. Rules are clear and specific - they can usually be applied at the time of filing. Standards are more loose in the sense that it can depend on perspective and how a particular judge chooses to apply it. An example of a rule is subject matter jurisdiction because there are clear rules and tests for establishing subject matter jurisdiction through diversity jurisdiction (complete diversity and amount in controversy) or federal question jurisdiction (holmes creation test - arising under some federal constitution, statute, or law). An example of a standard would be person jurisdiction because much of how specific jurisdiction (minimum contacts) is determined after international shoe is based on a sliding scale (quality and quantity), and in some ways, depends on how you interpret the given facts. The benefit of having a clear rule is that it is easier to apply than a standard. Rules bring stability, uniformity, and efficiency. However, logic is sometimes sacrificed when rules are used. Thus, sometimes standards would be better suited because you can apply it differently (slightly) depending on the given situation and ensuring that justice is given according to the facts (rather than a strict rule).
2. For a lot of the determinations in civil procedure (subject matter jurisdiction, personal jurisdiction, venue), individuals are evaluated by their domicile. Individuals, however, only have one domicile. Corporations, on the other hand, are considered residents of their place of incorporation and principle place of business (for SMJ) and wherever they have physical presence (PJ). The difference is especially noticeable in personal jurisdiction, because a large corporation with offices in different states could lead them to be potentially sued in those many states for even claims unrelated to that state (general jurisdiction). Civil procedure probably treats corporations this way because corporations are potentially making a lot of money by purposefully availing itself of the forum state by doing business and such. Thus, since they are benefiting from the forum state, it would also be fair to have them brought to court if a cause of action occurs in that state.The same is not true for individuals and personal jurisdiction over them should be limited to where they are domiciled or where the cause of action actually occurred.
3. The Due Process clause is used to judge whether a state's long-arm statute (for purposes of personal jurisdiction) is constitutional. Without the due process clause, a state could potentially have a long arm statute that hails in out-of-state defendants for any number of causes of actions simply because the state statute allowed it. Thus, through the due process clause, the number of ways an individual can be hailed in to defend themselves (because of personal jurisdiction) is limited to situations in which the reside in the forum state (not burdensome for them to go to court since they live close by) and in which they cause something (like an accident) in another state (but only because they

incorporation and principle place of business. Thus, there is complete diversity of citizenship.

As for the amount in controversy, the alleged amount by plaintiff is usually accepted unless it can be said to a legal certainty that the amount in controversy cannot be met. Also, claims - as long as it is between a single plaintiff and single defendant - can be aggregated to meet the amount in controversy even if the claims are unrelated. Here, PL would have at least alleged $60,000 if not more for breach of contract due to the loss she incurred. This alone may not be enough, but she also has an liED claim, and together, the two claims will probably exceed $75,000.

Thus, there is most likely Diversity Jdxn.

SMJ cannot be waived and can be raised at any tim~.

Personal Jurisdiction (PJ)

PJ is a court's power to exert jdxn over a defendant. Like SMJ, each claim needs to be assessed independently for PJ. PJ, however, needs to be consistent with both the state's law arm statute and the due process clause. There are two ways to establish in personam jdxn over a defendant: general jdxn and specific jdxn.

General Jdxn (GJ) - GJ allows a court to exercise jdxn over a defendant for any and all claims - even those unrelated to the state. Here, GJ would be established if KNB has such continuous and systematic contacts with Louisiana that it would not be unreasonable to exert PJ over KNB in Louisiana. GJ would be appropriate over KNB in Kansas because that is where they are incorporated and where their principle place of business is. There may also be GJ over KNB is other states because it does business in all 50 states. However, this would require them to have an office in those states (physical presence) in order to be continuous and systematic. If they are only doing business, it would not be enough because under Helicopteros, mere sales are not enough to establish GJ.

It depends on whether KNB has an office in Louisiana. If so, there is GJ. If not, then no GJ.

Specific Jdxn (SJ) - Even if there is no GJ over KNB is Louisiana, there may be SJ. SJ is established if there is such minimum contacts between KNB and Louisiana that it would not offend traditional notions of fair play and substantial justice to exercise PJ over KNB in that action. Thus, SJ is established if 1) there is sufficient contacts between the defendant and the forum state, 2) the cause of action arose out of those contacts, and 3) it would not be unreasonable to assert PJ. Here, there is probably no SJ over KNB in Louisana either.

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Arguably, PL was the one who sought out KNB by looking for information online and then "contacting" them through a third-party online service. However, this is a weak argument for the reasons following.

There was a website that had information and means by which viewers could contact various banks. Under the Zippo Test, the information would not constitute purposeful availment of a forum state because they are simply info. However, there is some level of interactivity, but probably not enough to constitute purposeful availment because no transactions were actually made (cannot apply for mortgage online). Instead, info is provided about random banks in which the viewer could contact by sending a message. Moreover, the website was run by a third party and not KNB itself.

However, in a somewhat modified version of a stream of commerce analysis, it can be argued that there was purposeful availment because KNB knew that there information was on the website and that it could be accessed by many people from different states. KNB did not take down the info and probably wanted people to get their contact info. Under Justice O'Conner (and Kennedy), it is arguable that they intended for their information to reach people from all 50 states. If not, it can at least be established that they knew that information would reach various people (Brennan and Ginsburg). Under Stevens, there may also be purposeful availment depending on the volume of sales (possibly high if a lot of people get their contact info) and hazard ness of the product (low since this isn't dangerous).

Even if that fails, however, it is undeniable that KNB solicited PL in CA by using her cell phone to contact PL while she was in CA (McGee). It was KNB's sales represenative who called PL and then talked her into Signing a contract. Thus, by solicitation, KNB availed itself of a CA resident. Also, under the contract plus analysis, there would also be SJ in CA (and probably Kansas) because there was a contract and several back and forth emails and contacts as they figured out a contract.

However, despite this, there is no SJ - and more broadly, PJ - in Louisana. There is GJ over KNB in Kansas (and whever they have offices) and SJ in CA because there was sufficient contacts (both qaulity and quanitity) and the cause of action arose out of those contacts under both the but-for and evidence tests.

In applying th Asahi reasonableness factors, there would also be SJ in CA (or whereve there are offices) because PL would be interested in litigaing near home, the CA court would be interested in providing relief to its citizen in CA, and it wouldn't be an undue burden on KNB to travel to CA.

PJ can be waived through consent and arguing on the merits in court.

Venue

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If PL had originally brought the case in W.D.La, it would be an improper venue. Therefore, it could be transferred or dismissed under §1406. If, however, PL had brought the case in a CA federal court, venue would be proper. KNB could still move to transfer under §1404 by showing that private and public interest considerations favor transfer to D.Kans. Generally, plaintiff's choice in forum is given more weight unless the other considerations outweighs it.

Private considerations are: plaintiff's choice of venue, defendant's choice of forum, where the cause of action took place, convenience on the parties, convenience for the witness, and ease of access to sources of proof. The public interest includes: the transferee court's familiarly with the governing law, the relative congestion of the transferee and transferor courts, and the local court's interest in solving local problems.

Here, the private considerations equally favor CA and Kansas because PL is in CA and KNB is in Kansas, and the cause of action happened in both states (arguably). However, since the Kansas courts are congested, it is likely the case will stay in CA court due to public considerations. Venue, however, can be waived so it can be moved to Kansas if KNB does so and PL doesn't pbjec(...

However, assuming the case was removed to D.Kans and it was improperly filed, the Kansas choice of law provision will be used. However, if it was properly filed in CA and removed to D.Kans, the choice of law provision would be CA choice of law because according to horizontal choice of law, the choice of law to be used is the state choice of law in which the action was properly filed.

As side note, choice of law and venue can be contracted with a choice of law provision (so this could potentially be avoided).

4. Erie Doctrine Analysis

Rules Enabling Act (REA)

Here, there is an state law that is arguably procedural because it asks how specific the complaint has to be. There is also an arguably conflicting federal rule -FRCP 8, which states that complaint only has to be short and plain. This rule probably conflicts with the Kansas state law because the state law says that the complaint has to be so specific that it has to give the statements made with dates on which the statement was given. If it is found that the two can not be simultaneously followed, the FRCP would be said to conflict with the state law. Thus, under the Hanna/REA analysis, we would go on to ask whether the FRCP rule was valid. A rule is valid if it is arguably procedural and it doesn't abridge, enlarge, or modify the substantive right of litigants. Here, since the FRCP tells how specific a complaint should be, it is arguably procedural. As for the second prong, it is arguable that it may affect substantive rights, but it would not alter substantive rights because the case would still be judged on the merits of the

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case. However, since PL would not be able to sue because her complaint doesn't satisfy the Kansas standard, it probably does alter substantive rights. Therefore, the state law would apply.

Rules Decision Act} Erie Analysis

The same result - state law - would be applied even if it was found that the two rules (state and FRCP) did not conflict. Under the RCA, 3 things would be asked.

1. Is it outcome determinative, 2) does state substantive interest outweighs federal interest, 3) twin aims of erie - would it lead to forum shopping and inequitable administration of justice?

The answer is probably yes to all three because PL would not be able to present a claim under Kansas state law, but will be able to do so under the FRCP rules. Thus, it would be outcome determinative and state interest would outweighs federal interest. And it would also arguably lead to forum shopping and inequitable administration of justice because the FRCP allows PL to present the case, but state law doesn't. Under these analysis, the federal court will probably apply state law (even though it would lead PL without a case if she filed in ,Kansas).

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