Paralegal Certification PrepLegal Terminology and ConceptsMedium
A new paralegal is tasked with identifying the appropriate court for a lawsuit involving a dispute between a resident of New York and a corporation headquartered in Delaware, where the amount in controversy exceeds $75,000. The paralegal understands that this scenario might allow for the case to be heard in a federal court, even though it involves state law. What is the specific term for the type of federal court jurisdiction applicable in this situation?
- ADiversity of Citizenship Jurisdiction
- BExclusive Jurisdiction
- CFederal Question Jurisdiction
- DConcurrent Jurisdiction
Show answer & explanationAnswer & explanation
Correct answer: A. Diversity of Citizenship Jurisdiction
Diversity of citizenship jurisdiction allows federal courts to hear cases between citizens of different states (or a state and a foreign state) where the amount in controversy exceeds $75,000. This is precisely the situation described.
Why the other options are wrong
- B. Exclusive jurisdiction means only one court system (state or federal) can hear the case; this scenario offers an option.
- C. Federal question jurisdiction applies when a case involves a question arising under the U.S. Constitution, a federal statute, or a treaty, which isn't specified as the primary reason here.
- D. Concurrent jurisdiction means both state and federal courts could potentially hear the case, but it's a broader concept than the specific reason for federal jurisdiction here.
Diversity of Citizenship Jurisdiction
A form of subject-matter jurisdiction in federal courts, allowing them to hear cases when the parties are from different states and the amount in controversy exceeds a statutory minimum (currently $75,000).
- Parties from different states (or state vs. foreign state)
- Amount in controversy > $75,000
- Allows federal court to hear state law claims
Memory trick: Federal courts have 'FQD' - Federal Question or Diversity.