Jurisdiction
In this lecture, we will be focusing on jurisdiction. Essentially when we discuss jurisdiction, we are talking about power. Namely, we are talking about the power of a court that is binding over particular parties (or property) in a particular type of case. There are two main types of jurisdiction that you need to be aware of: subject matter jurisdiction and personal jurisdiction. Personal jurisdiction refers to the court's power over particular persons (in personam) or over property (in rem). Subject matter jurisdiction refers to the court's power to hear a particular type of action.
Personal jurisdiction can be established in many ways. Personal jurisdiction can be established by residency. Individuals and corporations are subject to the jurisdiction of the places that they reside. Additionally, mere presence in a state is sufficient to give that state jurisdiction over an individual. A third basis for personal jurisdiction is consent. Even if the courts lack jurisdiction over an individual, that person may consent to the jurisdiction of a court. This is often done contractually as many contracts contain forum selection clauses where the signatories agree to subject themselves to the jurisdiction of a particular forum. Furthermore, states often have statutes requiring corporations doing business in a state or individuals driving in a state to submit to the personal jurisdiction of that state. Historically, personal jurisdiction was limited to these situations.
However, as transportation technology and communications technology improved leading to greater interconnectedness among the states, there was a need to expand personal jurisdiction. In the landmark Supreme Court ruling in International Shoe Co. v. Washington, 326 U.S. 310 (1945), the court held that states exert jurisdiction over entities not present or residing in a state, where there are "minimum contacts" with the forum state and the exercise of jurisdiction comports "with traditional notions of fair play and substantial justice." Following these guidelines, the states drafted long-arm statutes that specify when the courts will assert jurisdiction over an out-of-state defendant.
The next type of jurisdiction to discuss is subject matter jurisdiction. This refers to the court's power over a particular kind of case. To this end, courts may have plenary or limited jurisdiction. A court with plenary jurisdiction is empowered to hear a wide variety of matters. Courts of limited jurisdiction are empowered to hear specific kinds of case. Examples of these courts include bankruptcy courts or small claims courts.
We will conclude our discussion of jurisdiction with an examination of these principles as applied in the federal court system. Generally, the federal courts will apply the personal jurisdiction rules of whatever state in which the court is located. As for subject matter jurisdiction, the federal courts have jurisdiction in federal question cases and in diversity cases. In federal question cases, the case must originate under federal law. These include matters such as copyright. Additionally, the federal court's have subject matter jurisdiction in diversity cases.
These are cases where all plaintiffs and all defendants are from different (or "divers") jurisdictions and the amount of controversy is at least $75,000.
It's important to note that in federal question cases there may be concurrent jurisdiction. This is found in cases where either a state or a federal court has subject matter jurisdiction over a suit. In some cases only a federal court has power to render a decision, this is known as exclusive jurisdiction. For example, the federal court has exclusive jurisdiction over patents and bankruptcy.
• Is there Jurisdiction?
Look at the situations below and answer the question. Make sure to distinguish between subject matter and personal jurisdiction.
Additionally, discuss the standard the court will use to determine whether jurisdiction exists.
Situation 1: Mike, a Utah resident, sues Jim, a Nevada resident for $60,000 in Nevada's Federal District court for negligence (a state law civil suit). Jim argues that the case should be dismissed for a lack of subject matter jurisdiction. Is he right?
Situation 2: Bill, a California resident, sues Bob, also a California resident, for copyright infringement, a cause of action arising under federal law, in a Federal District Court in California. Bob argues that there is no subject matter jurisdiction. Is he right?
Situation 3: Billy, a Seattle, Washington resident, sues the Orange Corporation, a Texas corporation, under a breach of contract (a state law cause of action) in Washington State Court for $100,000. The Orange Corporation does most of its business in Texas. It is incorporated in Texas, and its corporate Headquarters are located in Dallas, Texas. However, the Orange Corporation does have a branch office in Seattle, Washington where it employs a single salesman. Additionally, the corporation advertises in the Seattle. The corporation argues that Washington lacks personal jurisdiction over the corporation. Is the corporation right? Assume for this question that Washington may exercise personal jurisdiction to the extent permitted by the Constitution of the United States. Be sure to list the standard the court will apply.
Situation 4: Same facts as above. Assume the court finds there is personal jurisdiction. Can the Orange Corporation have the case removed to federal court?
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