Diversity Jurisdiction Flashcards
What is required for a federal court to hear a dispute?
subject matter jurisdiction
personal jursdiction
venue
Where do we hear what types of subject matter a federal court may here?
1.) the Constitution (Article III Section 2)
2.) congressional authorization
diversity jurisdiction in simple terms
between citizens of different states
exclusive jurisdiction
congress defines what may be heard ONLY by federal courts (Rule 28)
concurrent jurisdiction
a case can be brought in either state or federal court
civil litigation steps
pleading –> discovery –> pretrial –> trial
Diversity Jurisdiction sources
1.) Article III Section 2 paragraph 1
2.) 28 USC 1332 (a)
what prevents someone from lying about their domicile?
Rule 11 - a lawyer when they sign a document with the court, it must include the basis for the federal court’s subject matter jurisdiction
what determines citizenship?
the domicile test (Gordon v. Steele)
the domicile test
1) establish a residence
2) with the intention to remain there indefinitely
*you can only have one domicile as a person
*you can also have no domicile
Gordon v. Steele
Issue: Where is Gordon domiciled for diversity purposes? (Idaho or Penn)
RULE: the domicile test
RULE: domicile is established on the day the complaint is filed
28 USC 1332(a)
1) citizens of different states
2) citizens of a state and citizens or subjects of a foreign state
***foreign citizens must be here lawfully to use this section
Mas v. Perry
Rule: complete diversity rule
Rule: the AIC requirement is determined by the amount claimed not the amount awarded in court
what are the requirements for diversity jurisdiction
1) complete diversity
2) AIC met
complete diversity
all plaintiffs must have a different domicile (citizenship) from all defendants
amount-in-controversy requirement
the amount must EXCEED 75,000 , as learned in Mas the AIC is met on the plaintiffs claim amount not how much is actually awarded during trial
citizenship of corporations
28 USC 1332 (c)
28 USC 1332 (c)
a corporations citizenship is determined from both:
1) where the corporation is incorporated and;
2) the corporations principal place of business
Hertz Corp. v. Friend
Issue: what constitutes a corporation’s principal place of business?
RULE: “nerve test”, when determining a corporation’s principal place of business it is the place where high level officers direct, control, and coordinate the corp’s activities
The courts decision was based on:
1) the statute’s language says “place” supporting this approach
2) administrative simplicity
3) legislative history of 1332, congress intended this place
Diefenthal v. CAB
RULE: the st. paul mercury test
RULE: would a rational jury find that amount claimed recoverable in trial?
1) claim must be made in good faith AND
2) must be legal certainty that plaintiffs could not recover for an amount exceeding the AIC requirement
St Paul Mercury test
a claim must be made in good faith AND there must be legal certainty the plaintiffs could not recover for an amount exceeding the AIC requirement
nerve center test
determining a corporation’s principal place of business: it is where high level officers direct, control, and coordinate the corporation’s activities
aggregation rules to the AIC requirement
1) a single plaintiff may aggregate (add) all claimed damages against a single defendant
** each claim needs to be for a different conduct **
2) tag along plaintiff rule: another plaintiff can add their claim against a defendant, if one plaintiff has already met all diversity requirements
