Question

Diversity Jurisdiction

Homes Away from Home 6. Carella (New York) collides with McGec (Florida) during a car chase in New York City. Carella is disabled in the accident, retires to Florida, and sues McGee in a federal district court in Florida. Is the suit proper? Corporate Diversity 8. Carella (New York) sues Underworld, Inc., incorporated in Delaware, doing business in every state, with its principal place of business in Florida. Suit is brought in the federal district court for the Northern District of Florida. Does the court have jurisdiction?. II. Prior to the 1958 amendment that provided for dual citizenship of corporations for diversity purposes, corporations were considered citizens of their state of incorporation only. Did the amendment expand or contract corporate access to federal court?

Answer 1

6. Article 3, section 2 of the US constitutions empowers Federal court to hear up cases of civil disputes between persons of two different states. The court also determine the amount of compensation for tangible damages to affected party after hearing pleas of both parties to disputes. In this case Carella is citizen of New York state and McGee is citizen of Florida state. At the time of car accident with McGee, Carella was resident of New York State but she settled down in Florida after the car accident and filed the civil suit in the Federal court of Florida. Therefore, Federal court of Florida does not have jurisdiction to hear up the case filed by Carella.

8. The federal court of Northern Florida district has diversity jurisdiction to hear up the suit filed by Carella. Here Carella resides in New York State and suit is filed against the Underworld Inc., that has presence in all states of US including New York but main business corporation is in Florida state, a different state. Therefore, having business presence of Underworld Inc in New York, the plaintiff's state does not affect the diversity jurisdiction of the Federal court as the company carries out its major business operations in Florida state,

11. Before amendment of 1958 to the diversity jurisdiction of US courts, corporations were considered citizens of state where they were incorporated. But after 1958 amendment, the US congress enacted section 28 of USC 1332 (c) that corporations are citizens of both states, the state where they are incorporated and the state where they have main business operations. Therefore, 1958 amendment of US constitution expands the corporate access to federal court as corporations can file civil suit in Federal courts of diverse states.