Civil Procedure Bar Intensive: Federal Subject-Matter Jurisdiction: Federal Questions, Diversity, Supplemental Jurisdiction, Removal, and Remand

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EPISODE SUMMARYFederal courts are courts of limited jurisdiction. A party invoking federal jurisdiction must identify an authorized basis, usually federal-question jurisdiction or diversity jurisdiction.Federal-question jurisdiction ordinarily exists when federal law creates the plaintiff’s claim. Under the well-pleaded complaint rule, a federal defense or federal counterclaim does not create federal-question jurisdiction. A narrow category of state-law claims may qualify when they necessarily raise a disputed and substantial federal issue that can be resolved without disturbing the federal-state balance.Diversity jurisdiction requires complete diversity and an amount in controversy exceeding $75,000. Individuals are citizens of their domiciles. Corporations are citizens of their states of incorporation and principal place of business. Unincorporated associations ordinarily take the citizenship of every member.A single plaintiff may aggregate multiple claims against one defendant. Multiple plaintiffs generally may not aggregate separate and distinct claims. The amount claimed controls if asserted in good faith unless it is legally certain that the plaintiff cannot recover above the threshold.Supplemental jurisdiction may bring related claims into federal court when they form part of the same case or controversy. Special restrictions apply when original jurisdiction rests solely on diversity. Even when supplemental jurisdiction is authorized, the court may decline it in recognized circumstances.Removal allows defendants to transfer qualifying state-court actions to federal court. The case must ordinarily fall within original federal jurisdiction. Federal-question removal follows the well-pleaded complaint rule. Diversity removal is subject to complete diversity, the amount requirement, and the forum-defendant rule.Remand returns improperly removed cases to state court. Procedural removal defects must generally be raised promptly, while lack of subject-matter jurisdiction is not ordinarily waivable.The central method is sequential: identify the claims, determine original jurisdiction, analyze supplemental jurisdiction, and then address removal or remand. Precise citizenship, amount, timing, and claim-by-claim analysis are essential.