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🎬 VIDEO INFO
How to Analyze Diversity Jurisdiction on a Civil Procedure Essay
SUBJECT MATTER JURISDICTION
A federal court must have subject matter jurisdiction to hear and decide a case before it.
DIVERSITY JURISDICTION
A federal court has subject matter jurisdiction under diversity jurisdiction if: (1) complete diversity is present; and (2) the amount in controversy exceeds $75,000.
COMPLETE DIVERSITY AND CITIZENSHIP
Complete diversity is present if every citizenship represented on the plaintiff's side of the case is different than every citizenship represented on the defendant's side of the case.
The rules for determining citizenship for diversity purposes vary depending on the types of parties involved.
For individuals, citizenship is determined by the individual’s state or country of domicile (i.e., the place of residence where the individual intends to remain indefinitely). An individual can only have one domicile at a time.
Corporations hold dual citizenship for diversity purposes: (1) the state or country of incorporation; and (2) the state or country of its principal place of business (i.e., the “nerve center” - usually where corporate headquarters are located).
Unincorporated associations and partnerships (e.g., unions, trade associations, partnerships, and limited partnerships) are considered a citizen of every state of which its members are citizens.
For class actions, the citizenship of each named party in the class who are suing count for diversity purposes. Class members that are not named may join without regard to citizenship.
AMOUNT IN CONTROVERSY REQUIREMENT
The amount in controversy is the monetary value at stake in the lawsuit. A claim for injunctive relief may be valued by the benefit to the plaintiff or the cost of compliance for the defendant.
If there are multiple claims, one plaintiff can aggregate all of her claims against one defendant to meet the amount in controversy requirement. One plaintiff can also aggregate all of her claims against multiple defendants if the defendants are jointly liable. If there are multiple plaintiffs; generally, each plaintiff’s claim must meet the amount in controversy requirement separately (unless supplemental jurisdiction applies).
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