28 U.S.C. § 1332

Definition

28 U.S.C. § 1332 establishes the federal court's jurisdiction over civil cases involving parties from different states, known as diversity jurisdiction. This statute allows for cases to be heard in federal court when the parties are citizens of different states and the amount in controversy exceeds $75,000. This provision aims to provide an impartial forum for litigants from different jurisdictions, thus reducing potential bias that might arise in state courts.

5 Must Know Facts For Your Next Test

1. For diversity jurisdiction under 28 U.S.C. § 1332, all plaintiffs must be citizens of different states than all defendants, known as complete diversity.
2. The amount in controversy must exceed $75,000; this threshold is crucial for establishing federal jurisdiction.
3. If a case qualifies for diversity jurisdiction, it can typically be filed in either state or federal court, providing flexibility to the parties involved.
4. 28 U.S.C. § 1332 does not apply to cases involving foreign entities unless there's complete diversity between U.S. citizens and foreign entities.
5. A plaintiff cannot defeat federal jurisdiction by joining a defendant from the same state as them solely for the purpose of getting the case back into state court.

Review Questions

• What is the significance of complete diversity in relation to 28 U.S.C. § 1332?
  • Complete diversity is essential because it ensures that all plaintiffs are citizens of different states from all defendants, preventing potential home-court advantage in state courts. This requirement helps maintain the integrity of federal courts as neutral grounds for resolving disputes between parties from different jurisdictions. If complete diversity is lacking, the case cannot be heard under this statute, and it would typically be dismissed or remanded back to state court.
• Discuss how the amount in controversy impacts the application of 28 U.S.C. § 1332 in determining federal jurisdiction.
  • The amount in controversy is a critical factor because it sets a monetary threshold of $75,000 that must be exceeded for a federal court to have jurisdiction under 28 U.S.C. § 1332. If the claims do not meet this requirement, even with complete diversity present, federal courts will not hear the case. This aspect ensures that only cases with significant financial stakes are eligible for resolution in the federal system, balancing access to justice with judicial resources.
• Evaluate how removal and remand processes are influenced by 28 U.S.C. § 1332 and what implications this has on litigants.
  • The removal process allows defendants to transfer cases from state to federal court if they qualify under 28 U.S.C. § 1332, meaning there is complete diversity and the amount in controversy exceeds $75,000. However, if a plaintiff can demonstrate that their case should not be in federal court—such as by showing lack of complete diversity or that the amount does not meet the threshold—they can seek remand back to state court. This interplay affects strategy for both plaintiffs and defendants, as choosing between forums can significantly impact the outcome based on perceived biases and legal advantages.

Related terms

Complete Diversity: The requirement that all plaintiffs must be from different states than all defendants for a case to qualify for diversity jurisdiction under 28 U.S.C. § 1332.

Amount in Controversy: The total value of the claims made by a plaintiff, which must exceed $75,000 for federal diversity jurisdiction to apply.

Removal: The process by which a defendant can move a case filed in state court to federal court, typically based on diversity jurisdiction or federal question jurisdiction.