Diversity Of Citizenship

Summary of Diversity Of Citizenship

A principle of American law that provides that where the parties to a civil action are located in different states, the parties shall have access to the Federal courts as the forum for trial of the case. This option may be used in lieu of suing in the state courts. Normally, the Federal court trying the case will use the procedural law of the state in which the court sits. The Federal courts will not hear cases arising out of diversity of citizenship where the amount in controversy is less than $10,000. The U.S. Constitution forbids the Federal courts to apply diversity of citizenship as a vehicle to the trial by Federal courts of cases in which a state of the United States is a defendant.

(Main Author: William J. Miller)