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Diversity of Citizenship: A basis for federal - court jurisdiction that exists when (1) a case...

Diversity of Citizenship: A basis for federal - court jurisdiction that exists when (1) a case is between citizens of different states, or between a citizen of a state and an alien, and (2) the matter in controversy exceeds a specific value(now $75,000).

Give a well explained example of Diversity of Citizenship.

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In the cases where the amount under controversy is more than the amount of $75000 then only the implementation of the clause of Diversity jurisdiction is possible. Apart from this, there must also be the full diversity of citizenship among the different parties

Example:- Diversity jurisdiction can be implemented when Alex who is residing in Texas is filing a case against Victoria citizen of Pennsylvania for damage of $80,000. In this case, the Diversity jurisdiction will be applied as first of all the amount under consideration is more than $75,000 and parties to the conflict are residing in different states.

When there are more than two parties to the dispute in such cases, Diversity jurisdiction can only be applied when all the parties belonged to different states.

For example, in the above case if Alex who is residing in Texas is filing a case against Victoria citizen of Pennsylvania and Jack who is the citizen of Minnesota for damage of $80,000. In this case, Diversity jurisdiction will be applied at all the individuals reside in different states.

But if any two of three individual in above case reside in same states, Diversity jurisdiction will not be implemented.

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