Jurisdiction, Venue, and Forum
Jurisdiction
Diversity jurisdiction under 28 U.S.C. section 1332 requires complete diversity, meaning no plaintiff shares citizenship with any defendant, and an amount in controversy exceeding $75,000 exclusive of interest and costs.
Corporate citizenship attaches to both the state of incorporation and the principal place of business, determined by the nerve center test.
Alternative Names:
Diversity of Citizenship, Section 1332 Jurisdiction
Why it Matters?
Diversity is the jurisdictional basis in most removed tort litigation, and its two requirements fail in different ways. Complete diversity is defeated by naming a local defendant, which is why fraudulent joinder analysis matters. Amount in controversy is contested where the complaint pleads no figure, and the removing defendant must establish it by a preponderance with actual evidence rather than speculation about the claim's value.
Frequently Confused with
Related terms
Frequently asked questions
What is complete diversity?
How is a corporation's citizenship determined?
