Lex Bar Rules Flashcards
SMJ & Conflict of Laws
Federal Courts may have jurisdiction over a claim in one of three ways:
(i) Federal Question;
(ii) Diversity; and
(iii) Supplemental.
Diversity jurisdiction applies where there is
no federal question, the parties are completely diverse, and the amount-in-controversy exceeds $75,000 exclusive of interest and costs.
Complete diversity means that
no plaintiff is a citizen of the same state as any defendant.
Corporations may have dual
citizenship.
A corporation is a citizen both of
the state(s) where it was incorporated and the state where it has its principal place of business.
A corporation’s principal place of business is determined by the nerve center test, which says that a principal place of business is
the location from which a corporation’s high-level officers direct and control the operations of the corporation.
A federal court sitting in diversity will apply the choice of law rules of
the state in which it is sitting.
Virginia’s choice of law rules provide that if the parties choose a state’s law to apply, then that will govern, so long as
the state chosen bears some reasonable relationship to the transaction.