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).28 USCA § 1332. • For purposes of diversity jurisdiction, a corporation is considered a citizen of both the state of incorporation and the state of its principal place of business. An unincorporated association, such as a partnership, is considered a citizen of each state where at least one of its members is a citizen. — Often shortened to diversity. See diversity jurisdiction under JURISDICTION. [Cases: Federal Courts 281–360.]
complete diversity. In a multiparty case, diversity between both sides to the lawsuit so that all plaintiffs have different citizenship from all defendants. • Complete diversity must exist for a federal court to have diversity jurisdiction over the matter. The rule of complete diversity was first laid down by Chief Justice Marshall in Strawbridge v. Curtiss, 7 U.S. (3 Cranch) 267 (1806). [Cases: Federal Courts 286.]
manufactured diversity. Improper or collusively created diversity of citizenship for the sole or primary purpose of creating federal jurisdiction. • Manufactured diversity is prohibited by 28 USCA § 1359. [Cases: Federal Courts 303.]
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