Paralegal Certification PrepLitigationEasy
A paralegal is reviewing a civil complaint filed in federal court. The complaint alleges a breach of contract between two parties from different states, with damages exceeding $75,000. Under which type of jurisdiction does the federal court have the authority to hear this case?
- AAppellate jurisdiction
- BSubject matter jurisdiction based on federal question
- CPersonal jurisdiction
- DSubject matter jurisdiction based on diversity of citizenship
Show answer & explanationAnswer & explanation
Correct answer: D. Subject matter jurisdiction based on diversity of citizenship
Federal courts have subject matter jurisdiction over cases involving diversity of citizenship when the parties are from different states and the amount in controversy exceeds $75,000.
Why the other options are wrong
- A. Appellate jurisdiction refers to a higher court's power to review decisions of lower courts.
- B. Federal question jurisdiction applies when a case arises under federal law, not state contract law.
- C. Personal jurisdiction refers to the court's power over the parties, not the type of case.
Diversity Jurisdiction
A type of subject matter jurisdiction in federal courts that allows them to hear cases based on state law if the parties are citizens of different states and the amount in controversy exceeds a statutory minimum (currently $75,000).
- Parties must be from different states (complete diversity).
- Amount in controversy must exceed $75,000.
- Allows federal courts to hear state law claims.
Memory trick: Federal courts care about 'Fed-Q' or 'Diversity' to get involved.