28 u.s.c. § 1332

Definition

28 U.S.C. § 1332 establishes the federal district courts' jurisdiction over civil actions where the parties are from different states and the amount in controversy exceeds $75,000. This law is crucial for diversity jurisdiction, allowing cases to be heard in federal court rather than state court, which can help ensure impartiality in disputes involving parties from different jurisdictions.

5 Must Know Facts For Your Next Test

1. 28 U.S.C. § 1332 was enacted as part of the Judiciary Act of 1789 and has been amended several times since then.
2. Diversity jurisdiction is designed to provide a neutral forum for litigants who might otherwise be biased against by local courts in their home state.
3. The citizenship of the parties is determined at the time the lawsuit is filed, and any change in citizenship after that does not affect jurisdiction.
4. 28 U.S.C. § 1332 includes provisions for determining the citizenship of corporations, treating them as citizens of both their state of incorporation and the state where they have their principal place of business.
5. If a plaintiff's claim falls below the amount in controversy requirement but is later amended or adjusted to meet or exceed it, diversity jurisdiction may still be established if it was originally valid at the time of filing.

Review Questions

• What are the key requirements for a case to qualify under 28 U.S.C. § 1332 for diversity jurisdiction?
  • For a case to qualify under 28 U.S.C. § 1332, there must be complete diversity between all plaintiffs and all defendants, meaning no plaintiff can share citizenship with any defendant. Additionally, the amount in controversy must exceed $75,000. These requirements ensure that the federal court has jurisdiction over civil actions involving parties from different states and aims to provide an impartial forum.
• How does 28 U.S.C. § 1332 influence the strategic decisions made by litigants regarding where to file their lawsuits?
  • Litigants often consider 28 U.S.C. § 1332 when deciding where to file a lawsuit because it allows for the possibility of federal court intervention if diversity jurisdiction applies. This can impact strategy as parties may prefer federal courts for perceived impartiality or due to specific procedural advantages. Additionally, understanding the amount in controversy is critical, as filing in federal court can alter potential outcomes based on differing rules between state and federal systems.
• Evaluate how changes to 28 U.S.C. § 1332 could affect access to justice for litigants across different states.
  • Changes to 28 U.S.C. § 1332 could significantly impact access to justice by altering how cases are heard based on state boundaries and financial thresholds. If Congress were to raise or lower the amount in controversy requirement or modify rules regarding complete diversity, it could either expand or limit opportunities for litigants to seek resolution in federal court. Such changes would affect strategic considerations, case outcomes, and overall fairness in legal proceedings, especially for those from disadvantaged jurisdictions who may rely on federal courts for unbiased adjudication.

Related terms

Diversity Jurisdiction: The legal ability of federal courts to hear cases where the parties are citizens of different states, which helps prevent bias that may arise in state courts.

Complete Diversity: A requirement that all plaintiffs must be citizens of different states from all defendants in a case for diversity jurisdiction to apply.

Amount in Controversy: The monetary threshold that must be met or exceeded for a case to qualify for diversity jurisdiction, which is currently set at $75,000 under 28 U.S.C. § 1332.