Don't Get Thrown Out On YourDerrière: Common Mistakes In Establishing Federal Subject-Matter Jurisdiction

Abstract

IN federal court, subject-matter jurisdiction is a magic bullet. Jurisdictional problems are particularly pernicious (to the verdict winner) or useful (to the verdict loser) because they can never be waived, the court must address any potential jurisdictional defect it notices, and an incurable jurisdictional defect requires the judgment to be thrown out. We review some common defects in federal subject-matter jurisdiction and potential ways to fix them. (1) I. Why Defects In Subject-Matter Jurisdiction Can Destroy Your Victory (Or Save You From Defeat) courts are courts of limited jurisdiction [,] possessing that power authorized by Constitution and statute.... (2) At every stage of litigation, a federal court is required to confirm that it has jurisdiction, and to dismiss the claim if it lacks jurisdiction. (3) court generally may not rule on the merits of a case without first determining that it has subject-matter jurisdiction. (4) If it appears that the court lacks subject-matter jurisdiction, it must dismiss the action. (5) This rule holds even after final judgment has been entered and an appeal filed. federal appellate court is required to evaluate both its own jurisdiction and that of the district court. If the district court lacked jurisdiction, the appellate court must vacate the judgment: [E]very federal appellate court has a special obligation to satisfy itself not only of its own jurisdiction, but also that of the lower courts in a cause under review, even though the parties are prepared to concede it. And if the record discloses that the lower court was without jurisdiction this court will notice the defect, although the parties make no contention concerning it. When the lower federal court lacks jurisdiction, we have jurisdiction on appeal, not of the merits but merely for the purpose of correcting the error of the lower court in entertaining the suit. (6) A litigant generally may raise a court's lack of subject-matter jurisdiction at any time in the same civil action, even initially at the highest appellate instance. (7) Even if a jurisdictional defect is first discovered after trial or after judgment has been entered, it requires the case to be dismissed. (8) Jurisdiction cannot be created by consent or estoppel, or by 'the parties' litigation conduct.' (9) Even a party that initially brought the case to federal court can attack jurisdiction. (10) Federal district courts and courts of appeals take these requirements seriously. Federal Rule of Appellate Procedure 28(a)(4) requires appellants to explain why the district court and court of appeals have subject-matter jurisdiction. Many district courts and courts of appeals instruct their staff to confirm the court's subject-matter jurisdiction at the inception of a case. Indeed, it is not uncommon for a district court or court of appeals to issue a sua sponte order requiring the parties to explain why there is subject-matter jurisdiction, even when no one disputes it. Meticulous attention to the jurisdictional requirements is therefore critical. We outline some common pitfalls in pleading and establishing both diversity and federal subject-matter jurisdiction, and describe some ways to fix them. II. Diversity Jurisdiction A. Background Article III of the U.S. Constitution provides that the judicial power of the United States extends to, inter alia, controversies citizens of different and a state, or citizens thereof, and foreign states, citizens or subjects. (11) Pursuant to this provision, the diversity statute, 28 U.S.C. [sections] 1332, grants federal courts jurisdiction over suits in which the amount in controversy exceeds $75,000 and the dispute is between (a) citizens of different states, (b) citizens of a state and citizens or subjects of a foreign country (excluding lawful permanent residents domiciled in the same state), (c) citizens of different states in which citizens or subjects of foreign countries are additional parties, or (d) a foreign state as plaintiff and citizens of a state or of different states. …