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Published byAdam Walton Modified over 9 years ago
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Amount in Controversy > $75,000 The Amount –Good Faith Claim Rule –OK unless it appears to a legal certainty that >$75K cannot be recovered –Removal cases if no amount pled in state court Courts differ MO – “reverse rule”
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Amount in Controversy > $75,000 When measured –At time of filing –Failure to recover >$75K Does not destroy fed jur. May lead to cost award
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Aggregation Rules Single P v Single D –Add the claims together 2 P’s v Single D –Usually cannot aggregate –E.g., two passengers ($60K each) in same wreck can’t add claims –Narrow exception for common undivided claims –E.g. two partners suing on $80K debt to partnership 1 P v. 2 Ds –Usually can’t add two $75K –Very Narrow Exception: –Can aggregate if Ds are jointly liable –Note: Not necessary if each is liable for >$75K –Odd setting necessary P Class Members –May not aggregate <$75K claims –But see: Pending Case –Class Representative >$75K but Class Members <$75K –Conflict among courts to be discussed later Claims & Counterclaims <$75K C & <$75K CC Can’t add them together $75K CC (removal) Permissive CC Can’t aggregate Compulsory CC Vornado implies no Lower Cts split (Mo: No)
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Ben (MA) Sues D (NY) Claim $80K for soft tissue neck injury Suppose $40K of that is for punitives Suppose law is very clear that punitives can’t be recovered Claim $80K for soft tissue neck injury Suppose that D answers & says, “I do owe you $20K so only $60K is in dispute” Ben sues for Count 1: $30K for slander Count 2: $50K for completely unrelated promissory note What if D wins SJ on Count 2 Because note was 50 years old and S/L is 5 years
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Ben (MA) & Emily (MA) Sue D (NY) They were in a car together that was hit by D They each sue for $75K They sue as class reps They each claim $80K damages Some class members from NY Some class members have <75K in damages Diversity? Amount in Controversy?
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Ben (MA) Sues D (NY) Ben sues in state court praying for “such amount as is fair and reasonable.” Is the amount in controversy met if D tries to remove to federal court Ben sues in state court praying for $30K Is the amount in controversy met if D counterclaims for $60K and tries to remove to federal court Ben sues in state court praying for $30K Is the amount in controversy met if D counterclaims for $90K and tries to remove to federal court
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