Diversity Jdx Flashcards
When does a court have diversity jurisdiction over a case?
where there is
(a) complete diversity between parties and the
(b) amount in controversy is greater than $75,000.
Citizenship for Individuals
An individual’s citizenship is based on
(a) domicile
(b) intent to remain indefinitely.
Complete Diversity for Corporations
(1) where the corporation is incorporated and
(2) the state (or country) in which the corporation has its principal place of business.
How to figure out a corporations principle place of business?
The “Nerve Center” Test: The place where the corporation’s high-level officers direct, control, and coordinate the corporation’s activities, aka the “nerve center.”
What is citizenship of permanent residents for the purposes of diversity jdx?
permanent residents who are domiciled in the same state as any Defendant will not be considered diverse.
*Dual citizenship: not considered a foreign citizen for the purposes of diversity jdx
Amount in Controversy General Rule
To satisfy the amount in controversy, it must appear with legal certainty that the Plaintiff can recover more than $75,000.
Aggregation Rules - Multiple Plaintiffs:
(with separate and distinct claims) cannot aggregate their claims for AIC purposes unless they have a common undivided interest and single title/right are (property jointly owned)
Aggregation Rules - Single Plaintiff:
- Single plaintiff: can aggregate all of its claims against a single defendant to determine AIC - whether the claims are related or not
How to determine docile
determined by being physically present or residing with within the forum state, and
How to determine amount in controversy
Legal Certainty Test
Legal Certainty Test
If the defendant can show to a legal certainty that the plaintiff’s claim is below the amount in controversy requirement, THEN the court should find that that element is not satisfied
What are the two type of counterclaims?
Compulsory
Permissive
What is compulsory counterclaim
comes out of STO as plaintiffs claim against D
permissive counterclaim
anything not a compulsory counterclaim
What are two types of damages?
Compensatory damages
Punitive Damages
What are compensatory damages?
anything that is the actual harm (ie. medical bills)
What are punitive damages?
damages meant to punish defendant for willful, malicious conduct
single digit multiplier rule applies
what is single digit multiplier rule?
9:1 ratio
punitive damages should not exceed nine times the amount of compensatory damages
