Diversity Jurisdiction

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
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