Diversity Jurisdiction - Part A Flashcards
Basic definition of Diversity Jurisdiction (Remember you have a rule script for this)?
cases between citizens of different states or states of a state and a foreign country, if the amount in controversy exceeds $75,000
How is the amount in controversy calculated?
exclusive of interests and costs
must exceed $75K
what are the (2) kinds of cases that cannot be brought in federal court under diversity jurisdiction?
probate and domestic relations. these cant be brought even if the normal requirements are satisfied because of long tradition
what is complete diversity?
every citizenship represented on the plaintiff’s side of the case must be different from every citizenship represented on the defendant’s side (ie cannot have FL on both sides of the v.)
what is minimal diversity?
exists when any plaintiff is diverse from any defendant, even if other plaintiffs and defendants overlap
when is minimal diversity permitted (3)?
- federal interpleader act
- class action with claims $5M+ (Class Action Fairness Act)
- interstate mass tort if at least 75 natural persons have died in one accident
when must diversity exist?
diversity must exist when the complaint is filed
does it matter that diversity did not exist when the cause of action arose?
no
does it matter that diversity no longer exists when the case comes to trial?
no
what is meant by citizenship of a party?
must be a citizen of the US and a domiciliary of the relevant state
what is domicile?
permanent residence = residence + an intent to remain indefinitely (or with no intent to leave) (ie someone going to law school in one state who has no intention of living there is not domiciled there)
how many domiciles can there be at a time?
for purposes of jurisdiction, there can only be one domicile at a time
what is the citizenship of someone who is the citizen of a foreign country who has been admitted to the US as a permanent resident?
citizen of the state in which he is domiciled
whose citizenship controls when there is a representative party?
the representative party
what are the exceptions to the representative party’s citizenship controlling? (2)
-a decedent’s estate, the citizenship of the decedent is used, not the executor
-for the legal rep of a minor or an incompetent person, the citizenship of the minor or incompetent controls, not the guardian
What is the party’s citizenship for a class action that are not under the Class Action Fairness Act?
citizenship of the named or representative parties count (class members not named may join without regard to citizenship)
what is the citizenship of a corporation?
State or country were incorporated AND
the state or country of its principal place of business
what is the principle place of business for a corporation?
their nerve center: where the corporation’s high level officers direct, control and coordinate corporation activities
what is the citizenship of partnerships and unincorporated associations?
citizen of every state of which its members are citizens (hard to see diversity cases with these)
Devices to Create or Destroy Diversity?
Action that create or defeat diversity are permitted, so long as the change in domicile is genuine, not a sham (e.g., moving). Assignment of a claim is permitted so long as the assignment is complete and real and not collusive. Partial assignment of a claim for debt collection does NOT affect citizenship if the assignor retains an interest in the claim (assignor’s citizenship controls).
