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Question

I am stuck on a question that i can find in my business law class... the question is In a case that invoves diversity jurisdiction, why would one of the parties prefer a state court to a federal court or vice versa?.... any suggestions?

Answer 1

If both parties are diverse, meaning they are residents of different states at the time of the proceedings removal to federal court from state court might be better because there may be bias in the locale where the case is being heard.

If a case is removed to federal court from state court, the federal courts will follow the state law from where the case originated assuming it's a state issue. This is known as the Erie Doctrine. The other answers regarding this are incorrect.

Answer 2

There are several reasons for this! Federal Judges are appointed for their lifetime. State judges are ELECTED. This means that a State judge is much more likely to rule for a party from his or her state (as a political move). State processes are often faster and less expensive to litigate. The winnings at the federal level are usually MUCH larger for the Plaintiff on a Diversity matter because the Amount In Controversy must be GREATER than $75,000.
Previously, Forum Shopping was a problem. When challenging in federal court the procedural and substantive laws are different. Now, due to something called the Erie Doctrine, this is MUCH harder. If there is a conflict of Procedural Rules, the Federal rules win in a federal court. However, if there is a conflict of substantive law, the STATE law governs. People used to sue in Federal Court for tort actions where their state had put a cap on damages, so that they could get more $$$. Now, they can't do that.
Hope this helps you! If you wish to read more on the issue, I suggest a Civil Procedure hornbook by Friedenthal. Friedenthal is the leading authority on civ pro in the USA.

Answer 3

I am thinking most diversity programs are pushed by the feds so the pro diversity would want a fed court and the opposition would want state court . . .
Unless you are in California or some state that is ahead of the fed curve . . .
Maybe ?

Answer 4

in a state court you have to follow that states laws but in federal court its a whole other ball game, federal court has to follow federal laws.

Answer 5

Here's a hint. Don't go into law. Any potential lawyer who does his "research" on YA has a fool for a researcher.