Removal: Amount in Controversy in Declaratory Judgment Actions
A defendant seeking removal on the basis of diversity jurisdiction has the burden of proving that the amount in controversy exceeds the $75,000 jurisdictional threshold. So, what does a defendant do when the sole claim is one for a declaratory judgment, and the complaint alleges no dollar amount in controversy? The defendants in a recent case from the Eastern District of Tennessee, Burkhart v. Starr Crest Owners Association, Inc., 2010 WL 1687078 (E.D. Tenn. Apr. 26, 2010), probably asked themselves the same question.
By Diversity Jurisdiction and Fraudulent Joinder
Jill Mertz, a citizen of Tennessee, brought suit to recover damages resulting from the wrongful death of her mother Dorothy Collins. Ms. Collins was a resident at a nursing home operated by defendant Alterra Healthcare Corporation. Ms. Mertz filed her initial action against Alterra in the Circuit Court for Blount County, Tennessee. Defendant Alterra removed the case to the Federal Court for the Eastern District of Tennessee based upon diversity jurisdiction pursuant to 28 U.S.C. § 1332(a)(1). Subsequently, Ms. Mertz discovered the identity of previously unidentified parties who were involved in the conduct that formed the basis for the complaint, and she filed a motion to amend her complaint to add the new defendants.
Supreme Court: Principal Place of Business = “Nerve Center”
The United States Supreme Court recently clarified that, a corporation’s “principal place of business” for diversity jurisdiction in the federal courts is the corporation’s “nerve center,” or “the place where a corporation’s officers direct, control, and coordinate the corporation’s activities.”
