Action to Compel Arbitration Satisfied Diversity Jurisdiction Amount

Sometimes it can be difficult to determine whether a plaintiff has presented a diversity case alleging an amount in controversy exceeding the federal minimum of $75,000. In an action to compel arbitration, for example, the relief sought from the district court is not a damage award. In Woodmen of the World Life Ins. Society v. Manganaro, 342 F.3d 1213 (10th Cir. Sept. 9, 2003), the Tenth Circuit adopted the technique of several other circuits that “look through to the possible award resulting from the desired arbitration.” Here, although the policyholders claimed that only $13,000 was at stake, they also demanded a mass mailing costing over $75,000 plus attorney’s fees and punitive damages that could not be considered unattainable “to a legal certainty.”