1Diversity Jurisdiction
Jurisdiction overe all civil actions where the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs, and is between: (1) Citizens of different States; (2) Citizens of a different State and citizens or subjects of a foreign state.
2Personal Jurisdiction of a Corporation
Corporation is deemed a citizen of every State and foreign state by which it has been incorporated and of the State or foreign state where it has its principal place of business.
3How is citizenship of individuals determined?
Domicile test
4What is the domicile test?
(1) The individual must live in the place; AND (2) Intend to remain indefinitiely (having no definite plan to leave).
5What is complete diversity?
Each and every plaintiff is diverse from each and every defendant.
6How do courts establish a corporation's "principal place of business"?
The Nerve-Center Test: the single location where a corporation's top officers direct, control, and coordinate the company's activities.
7What about citizenship of unincorporated entities?
If a business is unincorporated, and the entity sued is not an individual, courts determine citizenship by considering the organization a citizen of each and every state in which the entity's members are a citizen of.
8What is the Amount in Controversy Requirement?
Rule 1332(a): Diversity jurisdiction requires damages sought be valued at more than $75,000.
9How do courts determine value damages sought to satisfy the Amount in Controversy Requirement?
Courts apply a "good faith presumption"; the plaintiff's claimed amount will be accepted if made in good faith, and jurisdiction will be upheld unless it appears to a legal certianty that the claim is actually less than the requirement. The rule is quite lenient.
10What is Federal Question Jurisdiction?
USC Section 1332: "The district courts shall have original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the United States."
11How do courts evaluate Federal Question Jurisdiction?
The Mottley Rule: The federal question must appear ON THE FACE OF THE WELL-PLEADED COMPLAINT; WHERE
The Homes Test: A well-pleaded complaint is one where the suit "arises under the law that creates the cause of action"
Professor Note: Mottley tells you WHERE to look, Holmes tells you WHAT to look FOR!