28 U.S.C. 1332(a) gives federal courts jurisdiction over specified citizenship-based civil disputes where the amount in controversy exceeds $75,000, excluding interest and costs. Exactly $75,000 is insufficient. Citizenship is a legal status for this purpose, not simply a mailing address. [1]
Rules that determine the answer
Ordinary diversity generally requires complete diversity between opposing sides. A corporation has incorporation and principal-place-of-business citizenship; an LLC generally takes its members’ citizenship. Alienage cases have additional statutory limits. Removing a case also requires satisfying the removal statutes, including timing and any applicable forum-defendant restriction. [1] [2]
Jurisdiction, personal jurisdiction, and venue are separate questions. An agreement selecting federal court does not create subject-matter jurisdiction where the statutory requirements are absent.
What to check before taking the next step
- Identify every party’s legal form and citizenship, then support the amount in controversy with the actual requested relief.
- Collect formation records, ownership information, domicile evidence, complaint, and damages documentation.
A distinction that changes the result
For an individual, citizenship generally follows domicile: presence together with the relevant intent to make a place home. A temporary address does not necessarily establish it. For an LLC with multiple ownership layers, citizenship may need to be traced through members until the relevant individuals or corporations are identified. The amount in controversy concerns the case as legally assessed at the relevant time; a later smaller recovery does not necessarily prove that jurisdiction was absent at filing. Good-faith pleading and the applicable jurisdictional standard still matter. [1]
Practical example
An LLC organized in Delaware has a member domiciled in the plaintiff’s state. Listing only the LLC’s formation state can conceal a problem with complete diversity.
For related situations, see federal removal deadlines under Section 1446 and transfer or dismissal for improper venue.
Primary sources
Sources checked: October 31, 2026.