Diversity Jurisdiction USC 1332:
•Diversity between P’s and D’s
•Amount in Controversy must exceed $75,000
Domicile: Gordon Rule
•Takes up residence in a different state and;
•Intends to remain there indefinitely
*A person does not lose citizenship in one state until the person gains citizenship in another.
Mas Case:
•SMJ cannot be waived and can be raised at any time through the end of appeals.
•Amount in controversy is met if it is plausible P could recover that amount.
Corporations:
•A corporation is a citizen of every state it has its principal place of business and
incorporation.
Hertz Test (Nerve Center):
•Principal place of business is where control and coordination of the corporation
takes place and where its executives make decisions.
Amount in Controversy:
•St Paul Mercury Rule: Allegations made in good faith are accepted even if the P
doesn’t recover more than the amount in controversy requirement.
•Diefenthal: The amount was not made in good faith according to the St. Paul
Mercury Rule.
Aggregation:
•Single P v Single D even if the claims are unrelated. Not allowed with multiple
parties.
Tag Along P: Where one party has the amount in controversy and a second P tags along but
does not meet the amount in controversy.
Federal Question Jurisdiction USC 1331:
•The district courts shall have original jurisdiction of all civil actions arising under
the constitution, laws, or treatise of the US.
Well Pleaded Complaint: The federal question must be part of the well pleaded complaint
and appear prima facie. It shall not be a defense or counter-claim.
Lack of Federal SMJ:
•May be raised for the first time on appeal.
