Diversity jurisdiction: amount in controversy

Question 1

Amount in controversy

Answer 1

The amount in controversy must be in excess of $75,000 for diversity jurisdiction to lie.

Generally, a plaintiff’s good-faith assertion in the complaint that the action satisfies the amount-in-controversy requirement is sufficient, unless it appears to a legal certainty that the plaintiff cannot recover the amount alleged.

Question 2

Supplemental jurisdiction over plaintiffs’ claims

Answer 2

A federal court may exercise subject matter jurisdiction over a claim that fails to meet the amount-in-controversy requirement if:

(1) Diversity of citizenship is satisfied, and;
(2) The claim arises out of the same accident as the other plaintiff’s claim and involves a common nucleus of operative facts.

Question 3

Aggregation of claims: different defendants

Answer 3

If different defendants are subject to joint liability, a plaintiff may aggregate claims against them for amount-in-controversy purposes.

A plaintiff may not aggregate her claims to meet the amount-in-controversy requirement if the original claim is based on federal question jurisdiction.

Question 4

Statutory attorney fees

Answer 4

Statutory attorney fees may be added to the damages sought in determining the amount in controversy.

Question 5

Aggregation of claims: single defendant

Answer 5

When there is only one plaintiff and one defendant, all of the plaintiff’s claims against the defendant, including unrelated claims, are aggregated for purposes of determining whether the amount-in-controversy requirement has been satisfied.