Legal - What is a Diversity-Contract Dispute lawsuit?

Question

What does a lawsuit cause of "Diversity-Contract Dispute" mean -- in general terms? What types of disputes would fall under this type of cause? Thanks!!!

Answer 1

Ah, this sounds like something you saw on a federal court's ECF filing system, or perhaps on a "civil cover sheet" that you have to file with the court -- it's probably the "case type" indicator.

First "Diversity." To be in federal court, there must be subject matter jurisdiction (i.e. the court must have the power to hear the particular dispute that's being brought) and there must be personal jurisdiction (the court must have power over the people suing and being sued).
"Diversity-Contract" goes to the first part--subject matter jurisdiction.

Federal courts are courts of limited jurisdiction--you can't just run into federal court and have any old case heard there. Basically, a case must either be a "federal question" (meaning that you're suing or being sued under a federal statute) OR the parties to the case must be from different states and the amount in controversy (i.e. the amount of money being sued over) must exceed $75,000. The latter option is often colloqually called "diversity jurisdiction."

In this hypothetical case, the plaintiff has claimed the basis of jurisdiction of this federal court is "diversity" -- i.e. the parties are residents of different states, and the amount in controversy exceeds $75,000. That gives this federal court the power to hear the case, even though the case may only be brought under a "common law" or state law cause of action.

The second word indicates the nature of the dispute -- contract. My guess is that the plaintiff has sued either for breach of contract, alleging that the plaintiff has been damaged in excess of $75,000 for the defendant's breach, or for an injunction for "specific performance" of the contract, alleging that the value of the contract is greater than $75,000, or for a "declaratory judgment" as to the validity or invalidity of the contract, once again alleging the value of the contract to be in excess of $75,000.

That's what that means!

Answer 2

Diversity-breach Of Contract

Answer 3

Contract Dispute is simple -- the parties had a contract, and at least one party breached the contract.

Diversity could refer to Diversity Jurisdiction for federal lawsuits -- parties from different states and an amount in controversy over $75K.

Diversity could also refer to other things, however. It all depends on the context of how that phrase is used.

Answer 4

I think you are referring to two different concepts. Diversity means, in the legal sense, that the two parties are from different states or jurisdictions. A contract dispute is a disagreement over the performance duties owed by either party. An example would be a private citizen of Montana vs. Citibank, a Delaware corporation, with the private citizen alleging Citibank is violating the terms of its contract.

Answer 5

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