28 USC 1332: Diversity of citizenship; amount in controversy; costs
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28 USC 1332: Diversity of citizenship; amount in controversy; costs Text contains those laws in effect on January 23, 2000
From Title 28-JUDICIARY AND JUDICIAL PROCEDUREPART IV-JURISDICTION AND VENUECHAPTER 85-DISTRICT COURTS; JURISDICTION
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§1332. Diversity of citizenship; amount in controversy; costs

(a) The district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs, and is between-

(1) citizens of different States;

(2) citizens of a State and citizens or subjects of a foreign state;

(3) citizens of different States and in which citizens or subjects of a foreign state are additional parties; and

(4) a foreign state, defined in section 1603(a) of this title, as plaintiff and citizens of a State or of different States.


For the purposes of this section, section 1335, and section 1441, an alien admitted to the United States for permanent residence shall be deemed a citizen of the State in which such alien is domiciled.

(b) Except when express provision therefor is otherwise made in a statute of the United States, where the plaintiff who files the case originally in the Federal courts is finally adjudged to be entitled to recover less than the sum or value of $75,000, computed without regard to any setoff or counterclaim to which the defendant may be adjudged to be entitled, and exclusive of interest and costs, the district court may deny costs to the plaintiff and, in addition, may impose costs on the plaintiff.

(c) For the purposes of this section and section 1441 of this title-

(1) a corporation shall be deemed to be a citizen of any State by which it has been incorporated and of the State where it has its principal place of business, except that in any direct action against the insurer of a policy or contract of liability insurance, whether incorporated or unincorporated, to which action the insured is not joined as a party-defendant, such insurer shall be deemed a citizen of the State of which the insured is a citizen, as well as of any State by which the insurer has been incorporated and of the State where it has its principal place of business; and

(2) the legal representative of the estate of a decedent shall be deemed to be a citizen only of the same State as the decedent, and the legal representative of an infant or incompetent shall be deemed to be a citizen only of the same State as the infant or incompetent.


(d) The word "States", as used in this section, includes the Territories, the District of Columbia, and the Commonwealth of Puerto Rico.

(June 25, 1948, ch. 646, 62 Stat. 930 ; July 26, 1956, ch. 740, 70 Stat. 658 ; Pub. L. 85–554, §2, July 25, 1958, 72 Stat. 415 ; Pub. L. 88–439, §1, Aug. 14, 1964, 78 Stat. 445 ; Pub. L. 94–583, §3, Oct. 21, 1976, 90 Stat. 2891 ; Pub. L. 100–702, title II, §§201(a), 202(a), 203(a), Nov. 19, 1988, 102 Stat. 4646 ; Pub. L. 104–317, title II, §205(a), Oct. 19, 1996, 110 Stat. 3850 .)

Historical and Revision Notes

Based on title 28, U.S.C., 1940 ed., §41(1) (Mar. 3, 1911, ch. 231, §24, par. 1, 36 Stat. 1091 ; May 14, 1934, ch. 283, §1, 48 Stat. 775 ; Aug. 21, 1937, ch. 726, §1, 50 Stat. 738 ; Apr. 20, 1940, ch. 117, 54 Stat. 143 ).

Other provisions of section 41(1) of title 28, U.S.C., 1940 ed., are incorporated in sections 1331, 1341, 1342, 1345, 1354, and 1359 of this title. (See reviser's notes under said sections.)

Jurisdiction conferred by other sections of this chapter, except section 1335, is not dependent upon diversity of citizenship. (See annotations under former section 41 of title 28, U.S.C.A., and 35 C.J.S., p. 833 et seq. §§30–43. See, also, reviser's note under section 1331 of this title.) As to citizenship of bank where jurisdiction depends upon diversity of citizenship, see section 1348 of this title.

Words "all civil actions" were substituted for "all suits of a civil nature, at common law or in equity" in order to conform to Rule 2 of the Federal Rules of Civil Procedure.

Words "or citizens of the District of Columbia, Territory of Hawaii, or Alaska, and any State or Territory" which were inserted by the amendatory act April 20, 1940, are omitted. The word "States" is defined in this section and enumeration of the references is unnecessary.

The revised section conforms with the views of Philip F. Herrick, United States Attorney, Puerto Rico, who observed that the act of April 20, 1940, permitted action between a citizen of Hawaii and of Puerto Rico, but not between a citizen of New York and Puerto Rico, in the district court.

This changes the law to insure uniformity. The 1940 amendment applied only to the provision as to controversies between "citizens of different States." The new definition in subsection (b) extends the 1940 amendment to apply to controversies between citizens of the Territories or the District of Columbia, and foreign states or citizens or subjects thereof.

The diversity of citizenship language of section 41(1) of title 28, U.S.C., 1940 ed., as amended in 1940, was described as ambiguous in McGarry v. City of Bethlehem, 45 F.Supp. 385, 386. In that case the 1940 amendment was held unconstitutional insofar as it affected the District of Columbia. However, two other district courts upheld the amendment. Winkler v. Daniels, D.C.Va. 1942, 43 F.Supp. 265; Glaeser v. Acacia Mutual Life Ass'n., D.C.Cal. 1944, 55 F.Supp. 925.

This section is intended to cover all diversity of citizenship instances in civil actions in accordance with the judicial construction of the language in the original section 41(1) of title 28, U.S.C., 1940 ed. Therefore, the revised language covers civil actions between-

Citizens of a State, and citizens of other States and foreign states or citizens or subjects thereof;

Citizens of a Territory or the District of Columbia, and foreign states or citizens or subjects thereof;

Citizens of different States;

Citizens of different Territories;

Citizens of a State, and citizens of Territories;

Citizens of a State or Territory, and citizens of the District of Columbia;

Citizens of a State, and foreign states or citizens or subjects thereof.

The revised section removes an uncertainty referred to in the McGarry case, supra, as to whether Congress intended to permit citizens of the Territories or the District of Columbia to sue a State or Territory itself rather than the citizens thereof. The court observed that "Congress could hardly have had such intention."

The sentence "The foregoing provisions as to the sum or value of the matter in controversy shall not be construed to apply to any of the cases mentioned in the succeeding paragraphs of this section" was omitted as unnecessary. Those paragraphs are (2)–(28) of said section 41 of title 28, U.S.C., 1940 ed., which are revised and incorporated in this chapter and, except for those relating to actions against the United States and interpleader, contains no provision as to a sum or value necessary to confer jurisdiction. Consequently the omitted sentence is covered by excluding such requirement.

Section 41(1) of title 28, U.S.C., 1940 ed., as originally enacted, purported to include all jurisdictional provisions relating to the district courts. Subsequently, many special jurisdictional provisions were enacted and incorporated in other titles of the U.S.C., 1940 ed., as follows:


Title
Section

        

7
209
7
210
7
216
7
292
7
499g
7
608a(6)
7
608c(15)(B)
7
610(b)(2)
7
648
7
1175
7
1365–1367
7
1376
7
1508(c)
8
164
8
701
8
903
9
4
9
8
9
9
11
11(a)
11
46
11
205(a)(l)
11
401
11
511
11
512
11
514–516
11
711
11
712
11
811
11
812
11
1011
11
1012
11
1013
11
1200
12
93
12
195
12
632
15
4
15
9
15
15
15
25
15
26
15
31
15
53
15
68e
15
77t
15
77v
15
77vvv
15
78u(e)
15
78u(f)
15
78aa
15
79k(d)(e)
15
79r(f)(g)
15
80a–25
15
80a–34
15
80a–35
15
80a–41(c)(e)
15
80a–43
15
80b–14
15
97
15
99
15
433
15
715d(c)
15
715i
15
717s
15
717u
16
10
16
583e
16
820
16
825m
16
825n
16
825p
17
26
17
34
21
193
21
332
21
355
25
314
25
345
26
3633
26
3800
27
207
29
101
29
103–109
29
160(e)
29
216
29
217
30
188
31
232
33
495
33
918
33
921
35
63
35
66
35
67
35
72a
35
90
38
445
40
257
40
270b
40
361
41
113(b)(2)
42
405(c)(5)(g)
43
546
43
1062
45
56
45
88
45
89
45
153(p)
45
159
45
185
45
228j4
45
228k
45
268
45
355(f)
46
597
46
688
46
711
46
741 et seq.
46
781 et seq.
46
941(c)
46
951
46
954
46
1114(c)
46
1128d
47
11
47
13
47
33
47
36
47
207
47
401
47
406
47
407
48
242
48
245
49
5(8)
49
9
49
16(2)
49
16(9)
49
16(12)
49
17(9)
49
19a(l)
49
20(9)
49
23
49
26(h)
49
41(1)(3)
49
43
49
181(b)(c)
49
305(g)
49
322(b)
49
647
49
916
49
1017
49
1021
50
23
D.C. Code
11–305-11–307
D.C. Code
11–309
D.C. Code
11–324

Amendments

1996-Subsecs. (a), (b). Pub. L. 104–317 substituted "$75,000" for "$50,000".

1988-Subsec. (a). Pub. L. 100–702, §201(a), substituted "$50,000" for "$10,000" in introductory text.

Pub. L. 100–702, §203(a), inserted at end "For the purposes of this section, section 1335, and section 1441, an alien admitted to the United States for permanent residence shall be deemed a citizen of the State in which such alien is domiciled."

Subsec. (b). Pub. L. 100–702, §201(a), substituted "$50,000" for "$10,000".

Subsec. (c). Pub. L. 100–702, §202(a), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: "For the purposes of this section and section 1441 of this title, a corporation shall be deemed a citizen of any State by which it has been incorporated and of the State where it has its principal place of business: Provided further, That in any direct action against the insurer of a policy or contract of liability insurance, whether incorporated or unincorporated, to which action the insured is not joined as a party-defendant, such insurer shall be deemed a citizen of the State of which the insured is a citizen, as well as of any State by which the insurer has been incorporated and of the State where it has its principal place of business."

1976-Subsec. (a)(2). Pub. L. 94–583 substituted "and citizens or subjects of a foreign state;" for ", and foreign states or citizens or subjects thereof; and".

Subsec. (a)(3). Pub. L. 94–583 substituted "citizens or subjects of a foreign state are additional parties; and" for "foreign states or citizens or subjects thereof are additional parties".

Subsec. (a)(4). Pub. L. 94–583 added par. (4).

1964-Subsec. (c). Pub. L. 88–439 inserted proviso deeming an insurer of liability insurance, in an action to which the insurer is not joined as a party-defendant, a citizen, of the State of which the insured is a citizen, as well as the State the insurer has been incorporated by and the State where it has its principal place of business.

1958-Pub. L. 85–554 included costs in section catchline.

Subsec. (a). Pub. L. 85–554 substituted "$10,000" for "$3,000".

Subsecs. (b) to (d). Pub. L. 85–554 added subsecs. (b) and (c) and redesignated former subsec. (b) as (d).

1956-Subsec. (b). Act July 26, 1956, included the Commonwealth of Puerto Rico.

Effective Date of 1996 Amendment

Section 205(b) of Pub. L. 104–317 provided that: "The amendment made by this section [amending this section] shall take effect 90 days after the date of enactment of this Act [Oct. 19, 1996]."

Effective Date of 1988 Amendment

Section 201(b) of title II of Pub. L. 100–702 provided that: "The amendments made by this section [amending this section] shall apply to any civil action commenced on or after the 180th day after the date of enactment of this title [Nov. 19, 1988]."

Section 202(b) of title II of Pub. L. 100–702 provided that: "The amendment made by this section [amending this section] shall apply to any civil action commenced in or removed to a United States district court on or after the 180th day after the date of enactment of this title [Nov. 19, 1988]."

Section 203(b) of title II of Pub. L. 100–702 provided that: "The amendment made by this section [amending this section] shall apply to claims in civil actions commenced in or removed to the United States district courts on or after the 180th day after the date of enactment of this title [Nov. 19, 1988]."

Effective Date of 1976 Amendment

Amendment by Pub. L. 94–583 effective 90 days after Oct. 21, 1976, see section 8 of Pub. L. 94–583, set out as an Effective Date note under section 1602 of this title.

Effective Date of 1964 Amendment

Section 2 of Pub. L. 88–439 provided that: "The amendment made by this Act to section 1332(c), title 28, United States Code, applies only to causes of action arising after the date of enactment of this Act [Aug. 14, 1964]."

Effective Date of 1958 Amendment

Amendment by Pub. L. 85–554 applicable only in the case of actions commenced after July 25, 1958, see section 3 of Pub. L. 85–554, set out as a note under section 1331 of this title.

Federal Rules of Civil Procedure

Defenses and objections, see rule 12, Appendix to this title.

Cross References

Controversies involving pollution of waters, jurisdiction of actions by States, see section 466g–1 of Title 33, Navigation and Navigable Waters.

Removal of cases from State courts, see section 1441 et seq. of this title.

Venue of actions based on diversity of citizenship, see section 1391 of this title.

Section Referred to in Other Sections

This section is referred to in sections 1335, 1367, 1446, 1603 of this title; title 42 section 9613; title 48 sections 1424, 1612, 1822.