Bubbles, Inc, a soap manufacturer, and Durden Corp., a soap salesman, enter into a contract whereby Durden will sell Bubbles products in its stores.

Bubbles is incorporated and has its only place of business in Maryland. Durden is incorporated in Delaware, but has its principal place of business in Maryland. Durden does substantial business in both Delaware and Maryland.

The contract is controlled by Delaware state law.

There is a disagreement. Bubbles sues Durden for breach of contract. Bubbles brings the lawsuit in federal court in Delaware. Bubbles is requesting damages of $$100,000$ and claiming jurisdiction based on diversity of citizenship.

Durden files a motion to dismiss, claiming that there is no diversity and so the federal court does not have jurisdiction over the matter:

Is the court likely to grant Durden's motion? Why or why not?

Yes. Bubbles and Durden are both Maryland citizens so there is no diversity.

Yes, Diversity must be between natural people, not business entities.

No$.$ The plaintiff is a citizen of Maryland and Durden is from Delaware. The Plaintiff is seeking $$100K$ in damages.

No$.$ The motion to dismiss is too soon. Both sides must wait until discovery is over before the court can consider the motion.