6TimeFailure wrote:I'm posting this here because I came across this issue in a sample Civ Pro MBE question. AFAIK my Barbri notes does not cover this issue.
Is there diversity jurisdiction with these facts?
Plaintiff citizen of State B
Defendant corporation's second largest plant in State A, largest plant in State B, incorporated in State C, Board of Dir. in State D.
Amount in controversy excess of $75K
I initially thought there was no diversity jurisdiction because the P and D share a citizenship state (State B). But the answer explanation said there is diversity jurisdiction on these facts. So does that mean a D corporation can choose its citizenship state in order to satisfy diversity?
A person resides where they live (State B for P in your example)... A corporation resides where it is incorporated (State C in your example) or their principal place of business. In this example, I would say the principle place of business is state D, since the Board of Directors are there and that's where all the big decisions are being made. Having manufacturing plants wouldn't be considered the principle place of business, so the corp doesn't reside in either A or B.
There's diversity because P resides in State B (because he's a citizen of state B) and the corp resides in either State C or D and that the amount in controversy is OVER $75k... Be sure to remember it has to exceed $75k, because I'm sure there will be a Q where the amount in controversy is EXACTLY $75k, which would not be good enough.