Also known as: perfect diversity · perfected diversity · perfects diversity · complete diversity · diversity jurisdiction
Written by attorneys · grounded in primary & secondary sources — see below
A procedural mechanism in federal diversity cases by which nondiverse parties are dismissed or realigned so that complete diversity exists among the remaining parties.
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Pablo Perez and Philip Powell, citizens of different states, sued a limited partnership whose members included citizens of both states. The court dismissed the nondiverse member from the action, allowing the case to proceed with complete diversity intact among the remaining parties.
Priscilla Parks filed a diversity suit exceeding the jurisdictional amount against a diverse defendant. She later joined a nondiverse party. The court dismissed the nondiverse party before trial, allowing the case to proceed with complete diversity among the remaining parties.
Phoebe Park sued a corporation and an individual in federal court under diversity jurisdiction. After the court realigned the parties, the nondiverse defendant was dropped, establishing complete diversity for the remaining claims.
Patrick Phan brought a contract action against two defendants in federal court. One defendant shared citizenship with Phan. The court dismissed that defendant before judgment, perfecting diversity and allowing the action to continue.
Pinnacle Holdings sued multiple parties in state court. After removal, a nondiverse defendant was dismissed. The court upheld jurisdiction because diversity had been perfected prior to trial.
Phoenix Technologies filed suit against several defendants in federal court. One defendant shared citizenship with the plaintiff. The court dismissed the nondiverse party, thereby perfecting diversity among the remaining litigants.
The court may dismiss the nondiverse party if that party is not indispensable, allowing the action to proceed with complete diversity among the remaining parties.
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Yes, if the dismissal occurs before trial and creates complete diversity, the federal court may retain jurisdiction and enter a valid judgment.
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A court cannot dismiss a party if doing so would prejudice the remaining parties or destroy an essential claim, and the dismissal must not be used to manufacture jurisdiction improperly.
Supporting sources
…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…