Instructions:

Analyze whether the amount ($75,000) required for federal subject matter jurisdiction amount is met, thereby allowing the client to file the action in federal district court.

Materials:

• federal question jurisdiction- exists when a case is based on a matter involving federal law or arising under the U.S. Constitution; typical cases include civil rights, constitutional, patent, copyright, and antitrust cases
• diversity jurisdiction - key requirements are (1) the amount in controversy must be more than $75,000, (2) all Plaintiffs must be residents/citizens of states different from all the states of resident/citizenship of the Defendants
• subject matter jurisdiction - must exist to bring an action in federal court, and the basis for subject matter jurisdiction must be alleged in the claim
• if subject matter jurisdiction does not exist, a Defendant can file a motion to dismiss the case for lack of subject matter jurisdiction, thereby forcing the Plaintiff to bring the case in state court.

Questions:

a. Plaintiff has one claim against one Defendant for $70,000 in principal and $5,100 in interest.

b. Plaintiff has two claims against one Defendant:one claim is for $60,000 and one claim is for $20,000.

c. Plaintiff has two claims against two Defendants. The claims are two separate unrelated contracts. One claim is for $35,000, and one claim is for $45,000.

d. Plaintiff has two claims against three Defendants. The claims all relate to the obligations of a partnership in which the Defendants are all general partners. Each claim is for $30,000.

e. Two Plaintiffs have a claim against one Defendant based upon two separate contracts. Each Plaintiff has a claim for $60,000 against the Defendant.