Civil Procedure · Exam Prep

Diversity Jurisdiction Exam Prep

An essential guide for law students preparing for exams on diversity jurisdiction, covering key rules and issues.

Overview

Diversity jurisdiction allows federal courts to hear cases involving parties from different states, provided the amount in controversy exceeds $75,000. It is governed primarily by 28 U.S.C. § 1332, which emphasizes the importance of complete diversity among parties. Students must understand the nuances of citizenship determination, aggregation of claims, and the implications of diversity for venue and removal.

Key Rules to Memorize
  1. Diversity jurisdiction requires complete diversity of citizenship among the parties.
  2. The amount in controversy must exceed $75,000, exclusive of interest and costs.
  3. For individuals, citizenship is determined by domicile, which involves physical presence and intent to remain.
  4. Corporations are citizens of both their state of incorporation and the state where they have their principal place of business.
  5. For unincorporated associations like partnerships, citizenship is based on the citizenship of all members.
Common Issue Spotters

A case involving a corporation incorporated in State A but operating primarily in State B against a citizen of State C.

A lawsuit filed by a plaintiff from State D against multiple defendants, one of whom is also from State D.

A dispute between two parties from different states regarding a contract for an amount less than $75,000.

Model Answer Approach

To determine if diversity jurisdiction applies, we first assess the citizenship of the parties involved. In this case, if the plaintiff is a citizen of State A and the defendant is a citizen of State B, we have complete diversity. Next, we examine the amount in controversy: if it exceeds $75,000, then the federal court has jurisdiction. It is important to note that if any party on the plaintiff's side is a citizen of the same state as any party on the defendant's side, diversity jurisdiction fails. Additionally, we need to consider whether any statutory limitations apply and whether the claim can be removed to federal court if initially filed in state court.

Mnemonics
  • CAV - Complete diversity, Amount in controversy, Venue considerations
Common Pitfalls
  • Overlooking the domicile requirement for individuals when determining citizenship.
  • Failing to aggregate claims correctly when multiple plaintiffs or defendants are involved.
  • Assuming that parties from the same state can seek federal jurisdiction simply due to the amount in controversy.

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