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Federal judicial power · complete doctrine guide

Diversity and alienage jurisdiction

Diversity jurisdiction lets a federal court hear a state-law claim when the parties are from different states and a real amount is at stake, but both halves of that test are stricter than they look. Complete diversity is measured at the moment the complaint is filed, and no plaintiff may share citizenship with any defendant, on either side of the case. A natural person is a citizen of the one state where domiciled, meaning physical presence plus an intent to stay indefinitely, not wherever they happen to be living. A corporation carries two citizenships at once: every state where it is incorporated, and the one state of its principal place of business, ordinarily its corporate nerve center. An unincorporated association, by contrast, takes on the citizenship of every one of its members. The amount in controversy must exceed $75,000, exclusive of interest and costs, and separate plaintiffs generally cannot combine their unrelated claims to reach it.

TESTED STATUSCurrent MBE, MEE where applicable, and NextGen foundational doctrine
01 · COMPLETE FRAMEWORK

Black-letter propositions

  1. 01

    A natural person is a citizen of the one state of domicile: physical presence plus intent to remain indefinitely.

  2. 02

    A corporation is a citizen of every state of incorporation and its one principal place of business, ordinarily its nerve center.

  3. 03

    An unincorporated association takes the citizenship of every member.

  4. 04

    A legal representative generally takes the citizenship of the represented decedent, infant, or incompetent.

  5. 05

    Good-faith aggregation is permitted for one plaintiff against one defendant, but separate plaintiffs generally cannot aggregate separate claims.

02 · ORDER OF ANALYSIS

Use this attack sequence under time

1

Frame the issue

Identify every party and every citizenship at filing.

2

Resolve the next checkpoint

Confirm no plaintiff shares citizenship with any defendant.

3

Finish the conclusion

Calculate whether the pleaded amount legally could exceed $75,000.

03 · DISTINCTIONS THAT CREATE POINTS

Common wrong turns

  • Residence is not domicile.
  • A later change of citizenship does not cure or destroy diversity that existed at filing.
  • Supplemental jurisdiction cannot evade complete diversity for claims by plaintiffs against certain joined parties.
04 · WORKED APPLICATION

Worked example

A State A citizen sues a partnership for $90,000. One of the partnership's 40 partners is also a State A citizen.

Model analysis

Complete diversity is absent because the partnership has the citizenship of every partner, including State A. The number or managerial role of the members does not change the rule.

05 · CLOSED-BOOK RETRIEVAL

Practice this topic

06 · FROM THE PRIMARY TEXT

The statutory elements

28 U.S.C. 1332(a) gives district courts original jurisdiction of civil actions where the matter in controversy exceeds $75,000, exclusive of interest and costs, and is between citizens of different States, or between citizens of a State and citizens or subjects of a foreign state, subject to listed limits. Section 1332(c)(1) treats a corporation as a citizen of every State and foreign state where it is incorporated and of the State or foreign state where it has its principal place of business.

Article III, Section 2 extends the judicial power to controversies between citizens of different states, and the statute adds the amount requirement and the citizenship rules. The amount must exceed $75,000, so a claim of exactly $75,000 does not qualify.

07 · FROM THE PRIMARY TEXT

Where the statute changes the ordinary rules

Section 1332(d) covers class actions with different jurisdictional requirements, which is why a class case must be analyzed under its own subsection. Section 1332(c)(2) treats the legal representative of an estate, infant or incompetent as a citizen of the same State as the represented person. Section 1441(b)(2) also limits removal on diversity grounds when a properly joined and served defendant is a citizen of the State where the action is brought.

Complete diversity is not written in the words of 1332(a) but is the long-standing reading of citizens of different States, so confirm how your course states it.

08 · QUICK ANSWERS

Frequently asked questions

What is the controlling rule for diversity and alienage jurisdiction?+

Diversity requires complete diversity measured at filing and a good-faith amount in controversy exceeding $75,000.

What amount in controversy does diversity jurisdiction require?+

More than $75,000, exclusive of interest and costs, according to 28 U.S.C. 1332(a).

How is a corporation's citizenship determined for diversity?+

It is a citizen of every State and foreign state where it is incorporated and of the State or foreign state where it has its principal place of business, under 28 U.S.C. 1332(c)(1).

Does alienage jurisdiction appear in the statute?+

Yes. Section 1332(a)(2) covers actions between citizens of a State and citizens or subjects of a foreign state, subject to the limits stated in the statute.

How is an estate representative's citizenship treated?+

Under 28 U.S.C. 1332(c)(2), the legal representative of the estate of a decedent is deemed a citizen only of the same State as the decedent.

Can a forum-state defendant remove a diversity case?+

Not if any properly joined and served defendant is a citizen of the State where the action is brought, under 28 U.S.C. 1441(b)(2).

SOURCE DESK

Primary sources

Cornell LII: 28 U.S. Code (Sections 1332, 1441)↗Cornell LII: U.S. Constitution, Article III↗28 U.S.C. § 1332 (Office of the Law Revision Counsel)↗

Governing text for diversity and alienage jurisdiction

Federal Rules of Civil Procedure (U.S. Courts) ↗