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Diversity Jurisdiction
Practical Law Glossary Item 5-501-7658 (Approx. 3 pages)
Glossary
Diversity Jurisdiction
A basis of federal subject matter jurisdiction that allows federal courts to preside over civil actions where the matter in controversy exceeds the sum or value of $75,000, excluding interest and costs, and is between:
- Citizens of different states.
- Citizens of a US state and citizens or subjects of a foreign state, except when the citizen or subject of the foreign state is:
- an alien lawfully admitted for permanent residence in the US; and
- domiciled in the same US state.
- Citizens of different US states, where citizens or subjects of a foreign state are additional parties.
- A foreign state (as defined in 28 U.S.C. § 1603(a)) as plaintiff and citizens of a US state or of different US states.
Diversity jurisdiction requires "complete diversity" of citizenship between the plaintiff(s) and defendant(s). That is, no plaintiff may be a citizen of the same state as any defendant (see Lincoln Prop. Co. v. Roche, 546 U.S. 81, 89 (2005); see also 28 U.S.C. §1332). For more on diversity jurisdiction, see Practice Note, Commencing a Federal Lawsuit: Initial Considerations: Diversity Jurisdiction.
Note, however, that the diversity rules are different in class actions. For more information on diversity jurisdiction in class actions, see Class Action Fairness Act of 2005 (CAFA): Overview: Federal Diversity Jurisdiction Over Class Actions.