Emily, a resident of State Omega, initiates a lawsuit in federal court located in State Sigma against GlobalTech Inc., which is incorporated in State Theta and maintains its principal place of business in State Lambda. The dispute involves $150,000. Does the federal court in State Sigma have diversity jurisdiction over this case?
Yes, because the case was filed in federal court where federal courts have broad jurisdiction.
No, because the federal court is in State Sigma, which is not the state of incorporation or principal place of business of the corporation.
No, because GlobalTech Inc. is considered a citizen of multiple states, which prevents diversity jurisdiction.
Yes, because the parties are citizens of different states and the amount in controversy exceeds $75,000.
The federal court has diversity jurisdiction because the plaintiff and defendant are citizens of different states and the amount in controversy exceeds $75,000. GlobalTech Inc. is a citizen of both State Theta and State Lambda, which are different from Emily's state, ensuring complete diversity.
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Multistate Bar Examination
Civil Procedure
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