Removal of Civil Actions Based on Jurisdiction and Amount in Controversy, Slides of Civil procedure

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removal

1441(a) Except as otherwise expressly

provided by Act of Congress, any civil

action brought in a State court of which

the district courts of the United States

have original jurisdiction, may be

removed by the defendant or the

defendants, to the district court of the

United States for the district and

division embracing the place where

such action is pending.

1441(b)(2)

A civil action otherwise removable solely

on the basis of the jurisdiction under

section 1332(a) of this title may not be

removed if any of the parties in interest

properly joined and served as defendants is

a citizen of the State in which such action is

brought.

1441(f) The court to which such civil

action is removed is not precluded

from hearing and determining any

claim in such civil action because the

State court from which such civil

action is removed did not have

jurisdiction over that claim

procedure for removal

§ 1446. Procedure for removal of civil actions (a) Generally.--A defendant or defendants desiring to remove any civil action from a State court shall file in the district court of the United States for the district and division within which such action is pending a notice of removal signed pursuant to Rule 11 of the Federal Rules of Civil Procedure and containing a short and plain statement of the grounds for removal, together with a copy of all process, pleadings, and orders served upon such defendant or defendants in such action. (b) Requirements; generally.--(1) The notice of removal of a civil action or proceeding shall be filed within 30 days after the receipt by the defendant, through service or otherwise, of a copy of the initial pleading setting forth the claim for relief upon which such action or proceeding is based, or within 30 days after the service of summons upon the defendant if such initial pleading has then been filed in court and is not required to be served on the defendant, whichever period is shorter.… (B) Each defendant shall have 30 days after receipt by or service on that defendant of the initial pleading or summons described in paragraph (1) to file the notice of removal. (C) If defendants are served at different times, and a later-served defendant files a notice of removal, any earlier-served defendant may consent to the removal even though that earlier-served defendant did not previously initiate or consent to removal. (3) Except as provided in subsection (c), if the case stated by the initial pleading is not removable, a notice of removal may be filed within 30 days after receipt by the defendant, through service or otherwise, of a copy of an amended pleading, motion, order or other paper from which it may first be ascertained that the case is one which is or has become removable. (c) Requirements; removal based on diversity of citizenship.--(1) A case may not be removed under subsection (b)(3) on the basis of jurisdiction conferred by section 1332 more than 1 year after commencement of the action, unless the district court finds that the plaintiff has acted in bad faith in order to prevent a defendant from removing the action.... (B) If the notice of removal is filed more than 1 year after commencement of the action and the district court finds that the plaintiff deliberately failed to disclose the actual amount in controversy to prevent removal, that finding shall be deemed bad faith under paragraph (1). (d) Notice to adverse parties and State court.--Promptly after the filing of such notice of removal of a civil action the defendant or defendants shall give written notice thereof to all adverse parties and shall file a copy of the notice with the clerk of such State court, which shall effect the removal and the State court shall proceed no further unless and until the case is remanded.

P brings a diversity suit in federal

court against D alleging $100k for

personal injuries in negligence

P recovers only $3k from the jury.

Should the court dismiss for want

of diversity rather than enter a

judgment for $3k?

28 USC § 1332(b)

Except when express provision therefor is

otherwise made in a statute of the United States,

where the plaintiff who files the case originally in

the Federal courts is finally adjudged to be

entitled to recover less than the sum or value of

$75,000, computed without regard to any setoff

or counterclaim to which the defendant may be

adjudged to be entitled, and exclusive of interest

and costs, the district court may deny costs to the

plaintiff and, in addition, may impose costs on

the plaintiff.

P (NY) brings an action against D

(NJ) in NY state court for loss of his

hand in a car accident

P asks for $70k

May D remove?

1446(c)(2) If removal of a civil action is sought on the basis of the

jurisdiction conferred by section 1332(a), the sum demanded in

good faith in the initial pleading shall be deemed to be the amount

in controversy, except that-

(A) the notice of removal may assert the amount in controversy if

the initial pleading seeks--

(i) nonmonetary relief; or

(ii) a money judgment, but the State practice either does not

permit demand for a specific sum or permits recovery of damages

in excess of the amount demanded; and

(B) removal of the action is proper on the basis of an amount in

controversy asserted under subparagraph (A) if the district court

finds, by the preponderance of the evidence, that the amount in

controversy exceeds the amount specified in section 1332(a).

P (NY) sues D (CA) for battery ($40K)

and for breach of an unrelated

contract ($40K)

P and D had an agreement for P to do

work for D for $50,000. P does the work

but D doesn't pay. In P's (NY) complaint

against D (NJ), P asks for $50,000 under a

theory of breach of contract. Alternatively

• if it is found that there is no contract - he

asks for $40,000 in quantum meruit (the

fair market value of the labor he

performed). Diversity case?

Someone has died. The two children of the

decedent (P1 (NY) and P2 (NY)) are the

distributees of his estate -- that is, they have

a right to inherit. P1 and P2 bring an action

against the executor of the estate (D (CA)),

who, they allege, has absconded with

$80,000. $40,000 of that should go to P

and $40,000 to P2.

P1 and P2 are suing D. (P1 and P2 each

have property adjoining D's.) P1 and P

ask the court to enjoin D from polluting

their property by shutting down his

rendering plant. Assume that the cost

to D in lost revenue if he shuts down

the plant is $140K. The value to P1 and

P2 of the plant being shut down is $60K

each. Is the amount in controversy

satisfied for diversity?