Diversity of Citizenship
[1] Amount in Controversy Requirement
The amount in controversy in the case must exceed $75,000.
§28 U.S.C. §1332(a)
[2] Complete Diversity Rule
To be granted diversity jurisdiction in federal court, there must be complete diversity between all plaintiffs and all defendants in the case.
Determining Citizenship of the Parties
Individuals
Domicile Test: If an individual moves to a state with the intent to remain there indefinitely, they have established a new domicile that supersedes their previous domicile in another state.
Timing Rule: Citizenship is determined by the domicile held by the plaintiff at the time they file their suit in federal court.
Alienage Rule: Marriage does not automatically confer or remove citizenship from the parties.
Corporations
Corporate Dual Citizenship Rule: A corporation is a citizen of every State and foreign state in which it’s incorporated and has its principal place of business.
28 U.S.C. 1332(c)(1)
Nerve Center Test: A corporation’s “principal place of business” is the place where a corporation’s officers direct, control, and coordinate the corporation’s activities.
Hertz Corp. v. Friend, 559 U.S. 77 (2010)
Other Business Entities (Partnerships, LLCs, etc.): Unincorporated enterprises are analogized to partnerships, which take the citizenship of every general and limited partner when considering whether diversity jurisdiction applies.
Belleville v. Champaign, 7th Cir. 2003