DIVERSITY OF CITIZENSHIP

diversity  of  citizenship.A  basis  for  federal-court  jurisdiction  that  exists  when  (1)  a  case  is

between citizens of different states, or between a citizen of a state and an alien, and (2) the matter

in  controversy  exceeds  a  specific  value  (now  $75,000).28  USCA  §  1332.  •  For  purposes  of

diversity jurisdiction, a corporation is considered a citizen  of both the state  of incorporation and

the state of its principal place of business. An unincorporated association, such as a partnership, is

considered a citizen of each state where at least one of its members is a citizen. — Often shortened

to diversity. See diversity jurisdiction under JURISDICTION. [Cases: Federal Courts    281–360.]

complete diversity.In a multiparty case, diversity between both sides to the lawsuit so that all

plaintiffs  have  different  citizenship  from  all  defendants.  •  Complete  diversity  must  exist  for  a

federal court to have diversity jurisdiction over the matter. The rule of complete diversity was first

laid  down  by  Chief  Justice  Marshall  in  Strawbridge  v.  Curtiss,  7  U.S.  (3  Cranch)  267  (1806).

[Cases: Federal Courts    286.]

manufactured diversity.Improper or collusively created diversity of citizenship for the sole or

primary  purpose  of  creating  federal  jurisdiction.  •  Manufactured  diversity  is  prohibited  by  28

USCA § 1359. [Cases: Federal Courts    303.] [Blacks Law 8th]