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.

      • Strawbridge v. Curtiss, 7 U.S. 267 (1806)

  • 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. 

        • Gordon v. Steele, W.D. Pa. (1974)

      • Alienage Rule: Marriage does not automatically confer or remove citizenship from the parties.

        • Mas v. Perry, 5th Cir. (1974)

    • 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