KNOW THESE RULES VERBATIM

Question 1

Diversity Jurisdiction

Answer 1

Federal courts can have jurisdiction by diversity. Diversity jurisdiction exists when the parties are completely diverse and the amount in controversy is over $75,000 exclusive of costs and interest. Complete diversity means that no plaintiff is a citizen of the same state as any defendant. A corporation may have multiple citizenships. A corporation is a citizen of the state where incorporated and the state where it has its principal place of business. The principal place of business is determined by the ‘nerve center test’ which says that the principal place of business is the place from which the corporation’s high-level officers direct and control the activities of the corporation.

Question 2

Personal Jurisdiction

Answer 2

The exercise of personal jurisdiction must comply with the Virginia long arm statute, and must be consistent with due process under the U.S. Constitution. [Where a company contracts to supply services or goods within the Commonwealth of Virginia - this can be changed out with whatever the facts imply], it will satisfy the Virginia long arm statute. To satisfy the requirements of due process, there must have been sufficient minimum contacts between the defendant and the forum state such that it is consistent with traditional notions of fair play and substantial justice to sue the defendant here. When assessing minimum contacts, courts look for a purposeful availment by the defendant of the state’s commerce and law.