What two conditions must exist for federal courts to have diversity jurisdiction?

a. an individual is bringing suit against a corporation and the amount in dispute exceeds $75,000b. the plaintiff and defendant are from the same family and the amount in dispute exeeds $50,000. c. the case has been tried in two different states with two different outcomes and the amount in dispute exceeds $50,000. d. the plaintiff and defendant are citizens of different states and the amount in dispute exceeds $75,000.

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Business

Jan

16 July, 01:52

What two conditions must exist for federal courts to have diversity jurisdiction?

a. an individual is bringing suit against a corporation and the amount in dispute exceeds $75,000b. the plaintiff and defendant are from the same family and the amount in dispute exeeds $50,000. c. the case has been tried in two different states with two different outcomes and the amount in dispute exceeds $50,000. d. the plaintiff and defendant are citizens of different states and the amount in dispute exceeds $75,000.

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Answers (1)

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Sidney Key · Answer 1

Correct answer is D

Explanation:

Diversity jurisdiction:

Federal courts have original subject matter jurisdiction over cases in which the parties have diverse citizenships (i. e., no plaintiff and defendant are citizens of the same state) and in which the amount in dispute exceeds $75,000.

Citizenship:

For purposes of diversity jurisdiction, a person's citizenship is determined by the person's domicile, not by the person's residence.

Domicile:

A person is domiciled in the state in which he has his current dwelling place in which he intends to be domiciled indefinitely.

Aggregation:

The amount in controversy must be above $75,000 for diversity jurisdiction to apply. Aggregation allows jurisdiction where a plaintiff has brought multiple causes of action, which individually seek damages below $75,000, but can be combined so that the total amount in dispute exceeds the $75,000 required.