DIVERSITY JURISDICTION

Diversity Jurisdiction

Name of the Writer

Name of the Institution

Diversity Jurisdiction

Introduction

The case we are presenting in the paper involves diversity jurisdiction as it involves parties of different states.

Case background

Paul hires Dallium, Inc. to renovate a number of condominiums he purchased. Paul purchased the condominiums through a low income loan program offered by the federal government. Under the federal program, Paul must agree to make the condominiums available for sale or rent as low income housing and any contractors that perform work on the condominiums must meet certain federal statutory and regulatory standards regarding their fees and services. Dave is the project director for Dallium and he is in charge of the condominium renovations. After the work is complete, and all of the Dallium workers have left the site, Paul notices numerous problems with the work. He explains the problems to Dave, but Dave and Dallium refuse to address any of the issues unless Paul pays more money. As a result of Paul's complaints about the work, Dallium fires Dave.

Paul brings a breach of contract claim against Dallium and Dave in State X federal court. Paul lives in State X. The condominiums are located in State X. Dallium, Inc. is incorporated in State Y and has its corporate offices and equipment in State Z. Dallium does most of its work in State Z and the work it performed on the condominiums is the only work it has done in State X. Dave owns a house in State Z, but he started renting an apartment in State X when the condominium renovations project began to be closer to the project. Even though the work on the condominiums has stopped, and he lost his job with Dallium, he has continued to live in the apartment. Paul contends that the work at three of the condominiums is not satisfactory and he is asking the court to order Dave and Dallium to fix problems, or to award him $25,000 in damages for each condominium plus consequential damages. Paul contends that the court has jurisdiction under diversity of citizenship and under federal question jurisdiction because he asserts Dallium and Dave did not meet the statutory and regulatory requirements under the federal low income program. The federal law does not provide a cause of action. Paul contends that the failure to meet the federal statutory and regulatory standards shows that Dallium and Dave breached their contract with Paul.

Diversity Jurisdiction

With respect to diversity jurisdiction, there is the diversity of citizenship existed between the Plaintiffs and defendant. Diversity jurisdiction is a form of subject-matter jurisdiction in civil procedure in which a district court (the trial courts of general jurisdiction in the federal judiciary) has the power to hear a civil case where the persons that are parties are "diverse" in citizenship, which generally indicates that they are citizens of different states.

Subject matter jurisdiction

Subject Matter jurisdiction states that specific matters fall within the area of a specific court. As such, the Article L.311-37 of the French Consumer Code states ...