Diversity Jurisdiction

US Federal Courts do not automatically have jurisdiction over cases in the United States – their jurisdiction is generally limited to Federal Questions, Admiralty, cases and Diversity. Diversity is a form of jurisdiction originally established because of concerns over discrimination in state courts. For there to be diversity none of the plaintiffs can be from the same state as any of the defendants in a case. Corporations can be treated as having two citizenships – the state of incorporation (often Delaware) and where the “principle place of business” usually the company headquarters is located. The amount in controversy must exceed a jurisdictional threshold, currently $75,000.

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