SMJ - Diversity Jurisdiction

Question 1

In General

Answer 1

federal courts have jurisdiction when parties are citizens of different states or citizens of a state and citizens of a foreigns state, and the amount in controversy exceeds $75,000

Question 2

Complete Diversity

Answer 2

no diversity if any plaintiff is a citizen of the same state or citizen of the same foreign country as any defendant

Question 3

Citizenship of Parties: Individuals

Answer 3

domicile is state in which an individual is present and intends to reside indefinitely

an individual can only have one domicile at a time

domicile is determined when the action is commenced

Question 4

Citizenship of Parties: Corporations

Answer 4

citizenship is state of incorporation and state where it has its principal place of business

(“nerve center” from which the high-level officers direct, control, and coordinate the activities of the corporation)

Question 5

Amount in Controversy Standard

Answer 5

plaintiff’s good faith assertion in complaint is sufficient unless there is legal certainty that plaintiff cannot recover alleged amount

Question 6

Amount in Controversy Aggregation of Claims

Answer 6

permitted for single plaintiff against single defendant, or multiple plaintiff’s with common/undivided interest

counterclaims generally not counted in determining whether plaintiff has met amount

Question 7

AIC

Answer 7

permissive counterclaim must meet jurisdictional amount requirement; compulsory counterclaim need not

Question 8

Creating/Destroying Diversity

Answer 8

assignment of claims, failure to name indispensable parties, voluntary change of state citizenship, and replacement of parties