Also known as:diversity of parties · diversity jurisdiction
Written by attorneys · grounded in primary & secondary sources — see below
A requirement for original federal jurisdiction under the diversity statute that every plaintiff must be a citizen of a state different from every defendant. Citizenship of unincorporated associations is determined by the citizenship of each member rather than by the entity's own state of formation or principal place of business.
Sources & Authorities
How it applies
Common Examples
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Partnership Members Destroy Diversity
Dover Bank, a general partnership whose partners include citizens of State A and State B, sued Drake Logistics, a corporation incorporated and headquartered in State C. Because Dover Bank is treated as a citizen of every state in which any partner resides, complete diversity fails even though the corporate defendant is a citizen only of State C.
Domestic Relations Bar Applies
Deborah Dunn, a citizen of State A, sued her former spouse Dominic Drake, a citizen of State B, in federal court seeking modification of an existing child-custody decree. The domestic-relations exception prevents the court from exercising diversity jurisdiction over the request to alter the decree itself.
Select any source to read its text and confirm it supports the definition.
Cases
Casebooks
Ankenbrandt v. Richards504 U.S. 689 (1992)
Family-Law Federal Question Exception
Destiny Davis, a citizen of State A, brought a federal-question claim against her ex-husband Devon Drake, a citizen of State B, alleging violation of a federal statute arising from custody-related conduct. The presence of a substantial federal question independent of the family-law issue permits the federal court to proceed despite the domestic-relations context.
Elk Grove Unified School District v. Newdow542 U.S. 1 (2004)
In-State Defendant Blocks Removal
Dorothy Daniels, a citizen of State A, sued Diamond Manufacturing, a corporation incorporated and headquartered in State A, in State A court. Complete diversity is absent because the defendant is a citizen of the forum state, so the case cannot be removed on diversity grounds.
Shaffer v. Heitner433 U.S. 186 (1977)
State Substantive Law Controls
Deanna Davenport, a citizen of State A, sued Duffy Construction, a corporation incorporated and headquartered in State B, in federal court under diversity jurisdiction for a state-law negligence claim. The federal court must apply State A substantive rules, including any state-created presumptions that affect burdens of proof.
Erie Railroad Co. v. Tompkins304 U.S. 64, 78–80 (1938)
Probate Exception Narrows Jurisdiction
Dominic Drake, a citizen of State A, filed a diversity action in federal court against his sibling Dorothy Daniels, a citizen of State B, seeking to set aside a will already under administration in State A probate court. The probate exception bars the federal court from entertaining the claim because it would require the court to probate or annul the will.
Marshall v. Marshall547 U.S. 293, 310–12 (2006)
Common questions
Frequently Asked
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How is citizenship determined for a partnership or unincorporated association in a diversity case?+
The citizenship of every partner or member is counted. An unincorporated entity is therefore a citizen of every state in which any of its members is a citizen.
Supporting sources
Does the domestic-relations exception bar all family-law disputes from federal diversity jurisdiction?+
No. The exception is narrow and applies only when a party seeks issuance or modification of a divorce, alimony, or child-custody decree. Federal courts may still hear tort claims between family members or enforce existing decrees.
Supporting sources
When does the probate exception prevent a federal court from hearing a diversity case?+
The exception bars claims that seek to probate or annul a will or to administer an estate already in the custody of a state probate court. Claims that do not seek those specific remedies may proceed if diversity and amount requirements are satisfied.
Supporting sources
What happens to diversity jurisdiction when a plaintiff sues only the insurer in a direct action?+
The insurer is deemed a citizen of every state of which the insured is a citizen in addition to its own states of incorporation and principal place of business. Complete diversity is destroyed if the insured and the plaintiff share citizenship.
Supporting sources
304 U.S. 64, 78–80 (1938)Conflict of Laws
…an Argument for or against Abolishing Diversity of Citizenship Jurisdiction (1932) 18 A.B.A.J. 809; Ball, Revision of Federal Diversity Jurisdiction (1933) 28 Ill. L. Rev. 356, 362-64; Fordham, Swift v. Tyson and the Construction of State Statutes (1935) 41 W. Va. L.Q. 131. [^maj-7]: Compare Mr. Justice Miller in Gelpcke v. City of…