What is Federal Subject-Matter Jurisdiction?

A federal court has subject-matter jurisdiction over a case, it means that the court may hear or adjudicate the case. 

The process for establishing subject-matter jurisdiction is discussed below.

When does the Federal Court have Subject-Matter Jurisdiction?

Below are the methods of establishing federal subject-matter jurisdiction in a case:

• Relevant Law: see Kokkonen v. Guardian Life Ins. Co, 511 U.S. 375, 377 (1994) (federal courts are courts of limited jurisdiction; only possess power authorized by Constitution and statute).

What is Federal Question Jurisdiction?

Federal-question jurisdiction is based upon or arises out of a federal law or the US Constitution. 

For a federal district court to have subject-matter jurisdiction, the parties must demonstrate that the case regards a dispute or charge based on federal law. 

For example, suing someone for trespass is a state-law tort generally tried in a state court. 

Suing someone under a federal law, such as discrimination under the Fair Housing Act, would be a federal court action. 

Special federal courts, such as legislative and administrative courts, have special subject-matter jurisdiction to the extent of the legislative or executive authority applicable to the courts subject matter. 

The court cannot hear matters beyond the scope of that jurisdiction. 

For example, a bankruptcy court cannot adjudicate a securities law dispute.

• Relevant Law: The district court has original subject matter jurisdiction over actions involving "federal questions," those civil actions arising under the federal Constitution, federal law or treaties of the United States. See 28 U.S.C. 1331.

What is Federal Jurisdiction when the US is a Party? 

Federal courts have exclusive subject-matter jurisdiction in civil or criminal lawsuits against the United States or its representatives. 

That is, any case in which the US Government is a plaintiff or defendant, the matter can only be heard by a federal court. 

To illustrate, a federal district court would have subject-matter jurisdiction over a case in which a plaintiff sues the Federal Government for passing an allegedly discriminatory law. 

In such an action, the matter would also fall under federal-question jurisdiction, as the plaintiff is alleging that the action by the Federal Government is unconstitutional. 

What is Federal Jurisdiction in Suits Between States?

 Federal courts have exclusive subject-matter jurisdictions over civil or criminal allegations between state governments. 

This most often arises when one state sues to enjoin (stop) another state from taking actions that unduly discriminate against another state or its citizens. 

For example, State A may sue State B in federal court contesting State Bs higher sales tax rates on foreign citizens or businesses. 

What is a Federal Diversity Suits between Citizens of Different States? 

Federal courts have non-exclusive subject-matter jurisdiction in civil lawsuits between citizens of different states if certain conditions are met. 

In this situation, allowing for federal subject-matter jurisdiction prevents one party from having an unfair advantage by being subject to another state's judiciary. 

It allows citizens of different states to go to trial in federal court, even if the claims are pursuant to state law. 

The special conditions for this type of jurisdiction are as follows:

• Relevant Law: The district court also has original subject matter jurisdiction based upon "diversity of citizenship," disputes between citizens of different states where the matter in controversy exceeds the sum or value of $75,000, exclusive of interests and costs. See 28 U.S.C. 1332.

What is Diversity of Citizenship? 

Parties must be from different states at the time of filing the action. 

Some federal diversity suits require complete diversity, while others require minimum diversity. 

In complete diversity cases, all plaintiffs must be citizens of different states from all defendants. 

In minimum diversity cases, only one plaintiff must be from a different state from one defendant. 

Minimum diversity is a common requirement in class actions. 

What is the Jurisdictional Amount in Diversity Suits?

Diversity suits must involve a controversy between the plaintiff and defendant valued at $75,000 or more. 

In cases with multiple plaintiffs, all plaintiff's claims combined must amount to $75,000 or more. 

For example, the court may aggregate 3 plaintiffs with $25,000 claims to establish the $75,000 amount in controversy requirement. 

If the dispute is for less than this amount, the federal court is justified in allowing individuals from different states to bring an action or remove an action to federal court to hear the suit.

Related Topics

• US Courts (Intro)
• What is the Authority for Article III Courts?
• What is the Authority for Article I Courts?
• What is the authority for courts under Article II?
• What is the authority for Article IV Territorial Courts?
• What is the authority for State Courts?
• What are Article III Courts?
• What are Article I Administrative Courts?
• What are Article IV Territorial Courts?
• What are state courts?
• What is Subject-Matter Jurisdiction?
• What is Federal Court Subject-Matter Jurisdiction?
• What is State Court Subject-Matter Jurisdiction?
• Can a Federal trial courts hear state matters & vice versa?
• Can a Federal appellate court hear federal matters & vice versa?
• What is Personal Jurisdiction?
• How to establish Federal Court Personal Jurisdiction?
• How to establish State Court Personal Jurisdiction?
• What is a Long-Arm Statute?
• Who are the primary players in the state judicial system?
• What types of judges are part of the judiciary?
• What are the duties of trial judges in the legal system?
• Contempt of Court
• Declaratory Judgment
• Equitable Relief
• Equity - Definition
• What are the duties of Appellate Judges & Justices?
• De Novo Review
• What is the role of jurors in the judicial system?
• What number of jurors and juror votes are required for guilt or liability?
• What do Attorneys do?
• Who are the other players in the judicial system?
• US Circuit Court?
• US Supreme Court?
• Appeals from Legislative and Administrative Courts
• Appeals in the state court system?