6.24.2003

No Federal Diversity Jurisdiction Exists Over Complaint For Equitable Relief If Value Of Relief Sought Cannot Be Determined

A federal complaint invoking diversity jurisdiction under 28 U.S.C. §1332 must concern an amount in controversy exceeding $75,000. If the only remedy sought is equitable relief, the plaintiff must make a good faith estimate of the value of the relief sought – which can be difficult to do at times. As recently observed in Macken v. Jensen, 333 F.3d 797 (7th Cir. June 24, 2003), a plaintiff who is unable to value that relief at all must commence the case in state court. According to the court, a plaintiff is not permitted to file in federal court and then place the burden on the defendant of demonstrating that $75,000 or less is at stake; rather, Fed.R.Civ.P. 11(b)(3) requires plaintiff to establish sufficient support for federal diversity jurisdiction before filing in federal court.

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