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”

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

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

claims to make >$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 >$75Kbut Class Members <$75K– Conflict among courts to be

discussed later

Claims & Counterclaims• <$75K C & <$75K CC• Can’t add them together

• <$75K C & >$75K CC (removal)• Permissive CC •Can’t aggregate

• Compulsory CC•Vornado implies no•Lower Cts split (Mo: No)

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

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?

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