Complete diversity

Definition

Complete diversity refers to the requirement in federal diversity jurisdiction that all plaintiffs must be citizens of different states than all defendants in a lawsuit. This concept is essential because it ensures that federal courts only hear cases involving parties from different states, thereby avoiding any potential bias that may arise from state courts favoring their own citizens. Understanding complete diversity is crucial for determining the appropriate court for a case and how parties can navigate issues related to jurisdiction.

5 Must Know Facts For Your Next Test

1. Complete diversity is strictly interpreted; if any plaintiff shares the same state citizenship with any defendant, complete diversity is destroyed.
2. This requirement is meant to prevent forum shopping, where parties might seek out jurisdictions perceived as more favorable to their case.
3. Complete diversity must exist at the time of filing the lawsuit; changes in party citizenship after this point do not affect jurisdiction.
4. Federal courts will not exercise diversity jurisdiction if there is a non-diverse defendant joined in the lawsuit, regardless of whether that defendant has a viable claim.
5. Complete diversity applies only to civil cases, and criminal cases cannot be based on diversity jurisdiction.

Review Questions

• How does complete diversity impact the ability of parties to choose their forum when bringing a lawsuit?
  • Complete diversity directly influences forum selection because it determines whether a case can be heard in federal court. If complete diversity exists, plaintiffs may prefer federal court for perceived advantages such as neutrality or more favorable procedural rules. However, if complete diversity is lacking due to shared citizenship between any plaintiff and defendant, the case must be filed in state court, limiting the options available to the parties and potentially impacting their strategy.
• Discuss the implications of complete diversity on the concept of forum shopping and how it relates to the fairness of judicial proceedings.
  • Complete diversity serves as a safeguard against forum shopping by ensuring that plaintiffs cannot manipulate jurisdiction by simply choosing defendants from their own state. This requirement promotes fairness by preventing situations where a local plaintiff might have an undue advantage over an out-of-state defendant in their home court. By enforcing complete diversity, courts aim to maintain impartiality and balance in judicial proceedings across state lines.
• Evaluate how changes in state citizenship among parties after filing a lawsuit could affect complete diversity and what this means for pending cases.
  • Once a lawsuit is filed, any changes in the citizenship status of parties involved do not impact complete diversity as it pertains to jurisdiction. If a plaintiff or defendant changes state residency after filing, it does not retroactively alter the court's jurisdiction based on complete diversity. This means that pending cases remain in their chosen forum unless all parties agree otherwise or there are significant legal grounds for dismissal. Therefore, understanding the timing and implications of citizenship status is critical for both litigants and courts.

Related terms

Diversity Jurisdiction:

The power of federal courts to hear cases where the parties are from different states and the amount in controversy exceeds a specified threshold.

Federal Question Jurisdiction:

The authority of federal courts to hear cases that arise under the Constitution, laws, or treaties of the United States, regardless of the parties' citizenship.

Citizenship: The status of being a legally recognized subject or national of a state, which determines a party's eligibility for diversity jurisdiction.