Diversity jurisdiction Flashcards
Removal
Removal is improper if any defendant is a citizen of the state where the original action was filed.
Class actions
Diversity-of-citizenship is tested on the basis of the citizenship of the representative plaintiffs, not the citizenship of each member of the class.
Domestic relations exception
Cases that primarily are primarily probate or marital disputes—e.g., divorce, alimony, and custody—generally are excluded from diversity jurisdiction.
Timing of diversity determination
Diversity is determined at the time the case is filed. There is no requirement that diversity exist at the time the cause of action arose.
Diversity of citizenship: corporations
The location of the corporation’s nerve center (i.e., headquarters), not its main physical presence, is determinative for diversity purposes.
Removal: statutes of limitations
Removal of an action based on a state law claim from state court to federal court under diversity jurisdiction does not result in the creation of a new action. Instead, it is treated as a continuation of the same action.
Thus, for purposes of applying the statute of limitations to the action, the date on which the action was removed to federal court is irrelevant.
Alienage jurisdiction
Alienage jurisdiction does not lie if neither party is a non-U.S. citizen.
Thus, if both the plaintiff and defendant are U.S. citizens, and one is domiciled in a foreign country, neither alienage nor diversity jurisdiction lie.
Diversity of citizenship: foreign citizenship
Unlike state citizenship, citizenship in a foreign country generally does not depend on domicile but on whether the individual has taken the necessary steps to become a citizen.
Diversity of citizenship
In order for diversity jurisdiction to exist with respect to an individual who is a party to an action, the party must either be:
(1) a citizen of a U.S. state; or
(2) a citizen or subject of a foreign country.
Diversity of citizenship: partnerships
A partnership takes its citizenship from the citizenship of its partners, even if it is a limited partnership.
Domestic relations exception: probate
Although federal courts generally do not exercise diversity jurisdiction over probate matters, this restriction is narrowly construed and primarily applies to:
(1) the probate of a will; or
(2) the administration of a decedent’s estate.
Diversity of citizenship: assignment of claims
When the assignment of a claim is a business transaction—rather than a collusive act to create diversity jurisdiction—the assignee is the real party in interest whose citizenship determines the existence of diversity.
