Civil Procedure Multistate Bar Practice Exam

What constitutes limited federal subject matter jurisdiction?

1. Only cases with state law issues

2. Federal questions and diversity of citizenship

3. Pursuant to state law determination

4. Any case that involves a federal agency

The correct answer is: Federal questions and diversity of citizenship

Limited federal subject matter jurisdiction refers to the specific circumstances under which federal courts can hear a case, as defined by the Constitution and federal statutes. The two primary bases for this jurisdiction are federal question jurisdiction and diversity jurisdiction. Federal question jurisdiction arises in cases where the issues at hand involve a question of federal law. This means the claims must arise under the Constitution, federal laws, or treaties of the United States. On the other hand, diversity jurisdiction occurs in cases where the parties are citizens of different states and the amount in controversy exceeds a specified threshold (currently set at $75,000). This allows parties from different states to resolve their disputes in a federal court, ensuring a neutral forum. The other choices do not accurately describe limited federal subject matter jurisdiction. Cases involving only state law issues fall outside federal jurisdiction unless they meet the criteria for diversity jurisdiction. A determination pursuant to state law does not establish federal jurisdiction. Lastly, while cases involving a federal agency might touch on federal law, they do not automatically qualify as federal question jurisdiction unless the case involves a substantive issue of federal law. Therefore, the correct understanding is that federal subject matter jurisdiction is limited to federal questions and diversity of citizenship.