NC Bar Civil Procedure 2 — Questions and Answers
Question 1: Under the Erie doctrine, a federal court sitting in diversity must apply:
- Federal common law on all substantive issues
- State substantive law and federal procedural law (Correct answer)
- Federal law on all issues for uniformity
- The law of whichever state is most interested in the outcome
Correct answer: State substantive law and federal procedural law
Erie Railroad Co. v. Tompkins requires federal diversity courts to apply state substantive law while applying federal procedural rules.
Question 2: A compulsory counterclaim under Rule 13(a) must be asserted if it:
- Arises under federal law
- Arises from the same transaction or occurrence as the opposing party's claim (Correct answer)
- Would otherwise be barred by the statute of limitations
- Involves more than $75,000
Correct answer: Arises from the same transaction or occurrence as the opposing party's claim
Under Rule 13(a), a counterclaim is compulsory if it arises from the same transaction or occurrence as the plaintiff's claim — failure to plead it waives the claim.
Question 3: Venue in federal court is generally proper in a district where:
- Any defendant resides, regardless of diversity
- A substantial part of the events giving rise to the claim occurred, or where all defendants reside (Correct answer)
- The plaintiff resides in any case
- The amount in controversy is highest
Correct answer: A substantial part of the events giving rise to the claim occurred, or where all defendants reside
Under 28 U.S.C. § 1391, venue is proper where any defendant resides if all defendants reside in the same state, or where a substantial part of the events occurred.
Question 4: The class action requirements of Rule 23(a) include all of the following EXCEPT:
- Numerosity (class too large for joinder)
- Commonality (common questions of law or fact)
- Predominance of common issues over individual issues (Correct answer)
- Typicality (representative claims typical of the class)
Correct answer: Predominance of common issues over individual issues
Predominance is a Rule 23(b)(3) requirement for damages class actions, not one of the four threshold Rule 23(a) prerequisites.
Question 5: In North Carolina, the long-arm statute allows state courts to exercise personal jurisdiction over out-of-state defendants who:
- Have any business dealings anywhere in the country
- Have sufficient minimum contacts with North Carolina under N.C.G.S. § 1-75.4 (Correct answer)
- Are served with process in North Carolina
- Are citizens of states that have reciprocal agreements
Correct answer: Have sufficient minimum contacts with North Carolina under N.C.G.S. § 1-75.4
N.C.G.S. § 1-75.4 enumerates specific jurisdictional bases allowing North Carolina courts to reach out-of-state defendants with sufficient contacts with the state.
Question 6: A final judgment under 28 U.S.C. § 1291 is required for a party to appeal to a federal circuit court as of right. A partial summary judgment is generally:
- Immediately appealable as of right
- Not final and therefore not immediately appealable unless certified under Rule 54(b) (Correct answer)
- Always subject to interlocutory appeal
- Immediately appealable if it resolves a purely legal issue
Correct answer: Not final and therefore not immediately appealable unless certified under Rule 54(b)
A partial summary judgment is not final and therefore cannot be appealed as of right; the district court may direct entry of final judgment under Rule 54(b) if appropriate.
NC Bar Civil Procedure 2
Under the Erie doctrine, a federal court sitting in diversity must apply: