To be eligible for federal court, parties must be completely diverse (per Strawbridge
) and have $75,000 in controversy (except with new law about class actions).
- The complete diversity requirement is an interpretation of §1332 and not constitutionally required.
- People citizens where domiciled.
- Corps citizens where incorporated and HQ.
- Partnerships are citizens where all of members are citizens.
Minimum amount in controversy:
- Court must assess how much an injunction is worth when no damages are sought.
- Each π must be suing for the min statutory amount.
- Single π may aggregate claims to meet amount.
- Two πs may not aggregate if each has claims against ∆.
- If multiple πs have an undivided claim, the total value will determine the amount in controversy.
- Compulsory counterclaim may be heard regardless of amount, but permissive must have indepedent jurisdictional basis.
Why have diversity jurisdiction?
- prejudice against outsiders
- uniform, high quality forum encourages interstate commerce