In America, we have a federal system of government which leaves us two bodies of courts – Federal and State, each, with their own distinct areas of jurisdiction that sometimes unfortunately overlap. So, if you are involved in a probate claim, do you want to be in federal court or state probate court? Or…. if a man from New York hits you while they are visiting Miami Beach, you may have a state claim in federal court. Did you know that this diversity jurisdiction does not apply to probate matters due to a so called Probate Exception to federal jurisdiction?
Can I get to federal court for my probate lawsuit?
- Federal courts have limited jurisdiction in that there are only certain actions they can hear as compared state courts which are usually only limited by the size of the damages and/or the fact that an issue belongs in federal court.
- Normally a Federal Court will have jurisdiction for two reasons: someone is suing under federal law or because the parties are “diverse” meaning no two parties on either side of the case are from the same state.
- So if a man is visiting his girlfriend in Miami and he hits you and you sue both, there is no diversity assuming the girlfriend and you are both Florida residents.
- Do you know which court is best for you to get the results you need?
- Diversity jurisdiction has an important exception though called “the probate exception” which does not allow jurisdiction via diversity into federal courts for probate matters.
- The Federal Courts felt they were an inappropriate venue to administer estates and probate matters and chose not to open themselves up to such confusing issues such as what resident an estate is and how diversity is destroyed by heirs etc. Not to mention what law (which states’?) would the court apply?
2015 Case on Probate Claims in Federal Court: what heirs and estate beneficiaries need to know before filing a probate claim
- The Federal Court in Michigan’s Eastern District (Southern Division) was decided on March 27, 2015 and entered as a slip opinion (not in a reporter). The Case No. is 14-11535. This was truly an interesting day when the Court handed down their opinion in Carpenters’ Pension Trust Fund-Detroit and Vicinity v. Century Trust Co.
- A party brought a claim in Federal Court alleging that a party and his two alter ego companies failed to make certain required contributions under the Employee Retirement Income Security Act (ERISA).
- The Federal Court had an important question in front of it, did it lack jurisdiction because of the probate exception since this case was brought on behalf of the estate of decedent through its Personal Representative.
- The Court ultimately dismissed the claim; such a claim may not be brought in State Court, so do they still have a remedy?
- Do you agree with this result?
- Should you be in Palm Beach probate court for this ?
Want to learn more about this extremely interesting opinion? Check out a full copy of the opinion by clicking here.