Also known as: subject matter
Written by attorneys · grounded in primary & secondary sources — see below
The central transaction, event, or issue that forms the basis of a legal claim or proceeding.
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Madison Meyers sues Millennium Media for unpaid licensing fees on a joint marketing campaign. Millennium Media answers with a claim for damages arising from the same campaign's delayed launch that cost it revenue. The court treats the second claim as compulsory because it shares the identical underlying business arrangement.
Megan Moore offers a statement from her former colleague about a disputed contract. The colleague invokes spousal privilege and refuses to appear. The court deems the colleague unavailable, allowing the statement into evidence under the hearsay exception for unavailable declarants.
Miles Montgomery presides over a securities fraud suit against Maxwell Manufacturing. The judge learns his spouse owns shares in the defendant company. He recuses himself because the economic interest directly touches the controversy before the court.
Mariam Mansour represents Mohan Malhotra in a patent infringement action. She proposes taking a percentage ownership of the patent itself as her fee. The ethics rule bars the arrangement because it would give her a direct proprietary stake in the very claim she is litigating.
Majestic Construction and Magnolia Foods exchange emails confirming a multi-year supply arrangement for produce at set unit prices. The messages name the goods, duration, and pricing formula. A later dispute over quantity is resolved because the writings sufficiently identify the contract's core subject.
Ming Ma, a citizen of State A, sues a State B corporation over a supply contract formed in State A. Two weeks later Ma moves to State B. The defendant moves to dismiss for lack of diversity. The court retains jurisdiction because diversity is measured only at the moment of filing.
A court examines whether the counterclaim arises from the same transaction or occurrence that gave rise to the plaintiff's claim. Overlap in facts, witnesses, and legal issues typically satisfies the test.
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A declarant is unavailable when a court rules that a valid privilege prevents the declarant from testifying about the statement's subject matter. The privilege ruling itself establishes unavailability.
Supporting sources
A judge must recuse when the judge, the judge's spouse, or a household family member holds an economic interest in the subject matter of the case or in a party. Even modest holdings can require disqualification if they are not de minimis.
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…case was based on the statutory presence of appellants’ property in Delaware, without regard to whether the property was the subject matter of the lawsuit or whether the defendants had any other contacts with the State. Pp. 198-200. 2. The Delaware courts’ assertion of jurisdiction over appellants in this case cannot be…