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Federal Subject Matter Jurisdiction Case Study

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Federal Subject Matter Jurisdiction The issue is whether Abby, Beth, Carl, Dan and ABC’s Corporation (Plaintiffs) action meets requirements of federal subject matter jurisdiction. The two primary sources of the subject-matter jurisdiction of the federal courts are diversity jurisdiction and federal question jurisdiction. The federal question jurisdiction is over the cause of action that arises under federal law. A diversity jurisdiction is a form of subject matter jurisdiction that has authority to hear civil cases. Under 28 U.S.C. § 1332, federal courts have original jurisdiction in an action that meets complete diversity requirement (the parties are citizens of the different state), and an amount in controversy exceeds $75,000, excluding legal expenses and court cost. Individuals are citizens of the state that is a place of their domicile. For purpose of jurisdiction, domicile means a permanent residence where a person has fixed dwelling with an intention to return when absent. Based on provided facts, Abby and Beth domicile in California. Therefore, they are citizens of California. Carl and Dan work from their homes in Arizona, and based on that information we can assume that they are citizens of Arizona. A corporation is considered a citizen of both; the state of its incorporation and the …show more content…

This amount includes $20,000 in her medical expenses, $20,000 in lost wages, and a claim of $60,000 for emotional stress damages. After deduction of legal and court fees, it satisfies the amount in controversy requirement. Since Abby’s claim satisfied the requirement of jurisdictional amount, based on supplemental jurisdiction rule, Beth, Carl, Dan and ABC Corporation can join her claim, and sue Samsung for the for their additional $50,000. Accordingly, since one of the plaintiffs exceeded the amount of $75000, under supplemental jurisdiction rule, plaintiffs satisfied the amount in controversy

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