What dollar amount must a diversity case exceed in federal court?
Asked by: Kiana Jacobi V | Last update: October 14, 2025Score: 4.3/5 (52 votes)
The federal diversity statute, 28 U.S.C. § 1332(a)(2), states that federal courts have jurisdiction over all civil actions between citizens of a state and citizens or subjects of a foreign state where the amount in controversy exceeds $75,000.
What is the diversity requirement for federal court?
Diversity jurisdiction allows a plaintiff to file (or a defendant to remove) their case in federal court. It requires complete diversity between parties to the lawsuit, and the amount in controversy must exceed $75,000.
What amount is required for diversity jurisdiction?
The current diversity jurisdiction provision is codified at 28 U.S.C. § 1332, and grants federal court jurisdiction in all civil actions between citizens of different states and between a citizen of a state and a subject of a foreign state if the amount in controversy exceeds $75,000.
Is 75000 enough for diversity jurisdiction?
For a court to exercise diversity jurisdiction, the amount in controversy must exceed $75,000 and complete diversity of citizenship must exist. Complete diversity of citizenship occurs when no plaintiff and defendant are domiciled in the same state.
What is the minimum amount of money being disputed if it is a federal case?
The amount-in-controversy requirement applies to all cases arising under diversity jurisdiction. See 28 U.S.C. § 1332 (1994) ("The district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000 .... "). Pursuant to 28 U.S.C.
What is Diversity Jurisdiction?
Will a collection agency sue for $5000?
Unpaid, credit card balances between $5,000 to $10,000 increase the likelihood of legal action by creditors or collection agencies. While agencies typically pursue the full amount owed, debt buyers may accept reduced payments.
What is the minimum diversity?
The prevailing rule mandating complete diversity requires that no plaintiff and no defendant are from the same state in order to get into federal court, whereas “minimal diversity” would provide that it is enough for federal jurisdiction if any parties on opposite sides of the “v.” are from different states.
How do you beat diversity jurisdiction?
Diversity jurisdiction is often more clear-cut, but a plaintiff may attempt to preemptively defeat such jurisdiction by naming a defendant that is a citizen of the same state—i.e., a forum defendant. See, e.g., Wilson v. Republic Iron & Steel Co., 257 U.S. 92, 97 (1921); accord Johnson v. Am.
What two conditions must exist for federal courts to have diversity jurisdiction?
The two requirements for federal courts to exercise diversity jurisdiction are: (1) the plaintiff and defendant must be citizens of different states; and (2) the amount in controversy must be greater than $75,000, exclusive of interest and costs.
What is the dollar amount limit on federal question cases that can be brought in federal court?
2. The amount of damages in controversy must be more than $75,000. If the amount you seek to recover is $75,000.00 or less, you cannot file your action in federal court, even if there is complete diversity of citizenship. If you cannot satisfy both of these requirements, you cannot file your case in federal court.
How do you prove diversity jurisdiction?
§ 1332 requires that: (1) the amount in controversy exceeds $75,000; and (2) the parties' citizenship is completely diverse (i.e., no plaintiff is a citizen of any state where a defendant is a citizen).
What is the erie test?
In the 1938 decision Erie Railroad v. Tompkins,1. 304 U.S. 64, 80 (1938). the Supreme Court set forth what is now commonly known as the Erie doctrine, which generally requires a federal court to apply state substantive law, unless the matter before it is governed by federal law.
How do you determine the amount in controversy?
To determine whether the amount in controversy is met, “[t]he rule…is that… the sum claimed by the plaintiff controls if the claim is apparently made in good faith. It must appear to a legal certainty that the claim is really for less than the jurisdictional amount to justify dismissal.” St. Paul Mercury Indemnity Co.
What is the jurisdictional amount in federal diversity cases?
For a case to be heard in district court on grounds of diversity jurisdiction , the amount in controversy a plaintiff pleads must exceed $75,000 .
What is the federal law on diversity?
It is illegal for an employer to make decisions about job assignments and promotions based on an employee's race, color, religion, sex (including gender identity, sexual orientation, and pregnancy), national origin, age (40 or older), disability or genetic information.
What are the requirements for federal jurisdiction?
To bring a state law claim in federal court, all of the plaintiffs must be located in different states than all of the defendants, and the “amount in controversy” must be more than $75,000. (Note: the rules for diversity jurisdiction are much more complicated than explained here.)
What is the amount in controversy for a federal lawsuit?
Unless the defendant can show that the “amount in controversy” is at least $75,000, that defendant cannot invoke federal court jurisdiction where the parties have diverse citizenship. In Wal-Mart Stores East, LP v.
What are the three ways a case qualifies for federal jurisdiction?
More specifically, federal courts hear civil, criminal, and bankruptcy cases. And once a case is decided, it can often be appealed.
What does not constitute diversity jurisdiction?
If a defendant later moves to the same state as the plaintiff while the action is pending, the federal court will still have jurisdiction. However, if any defendant is a citizen of the state where the action is first filed, diversity does not exist.
What is the complete diversity rule?
Diversity jurisdiction requires "complete diversity" of citizenship between the plaintiff(s) and defendant(s). That is, no plaintiff may be a citizen of the same state as any defendant (see Lincoln Prop.
Does amount in controversy include punitive damages?
The amount in controversy includes claims for general and special damages (excluding costs and interests), including attorneys fees, if recoverable by statute or contract, and punitive damages, if recoverable as a matter of law.
Can a defendant waive diversity jurisdiction?
Strawbridge v. Curtiss, 7 U.S. (3 Cranch) 267 (1806). Since diversity jurisdiction concerns the court's subject matter jurisdiction over the matter, it cannot be waived by the parties and can be considered by the parties and the court at any time in the litigation.
What is the maximum value of the diversity factor?
Hence diversity factor is always greater than 1. The knowledge of diversity factor is vital in determining the capacity of the plant equipment. The greater the diversity factor, the lesser is the cost of generation of power. Because greater diversity factor means lesser maximum demand.
What type of cases cannot be brought under diversity jurisdiction?
Diversity jurisdiction applies when the plaintiff and defendant are from different states and the amount in controversy is more than $75,000. If there are multiple plaintiffs and multiple defendants, no plaintiff can be from the same state as any defendant.
What is the maximum diversity problem?
The maximum diversity problem (MDP) consists of determining a subset M of a given cardinality from a set N of elements, in such a way that the sum of the pair-wise distances between the elements of M is the maximum possible. The definition of distance between elements is customized to specific applications.