USVI Bar Practice Questions - United States Virgin Islands Bar Examination Exam

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A plaintiff domiciled in New York sues a defendant domiciled in Florida in federal court, alleging state-law breach of contract with $90,000 in damages. The defendant moves to dismiss. How should the court rule on subject-matter jurisdiction?

The court has diversity jurisdiction because the parties are completely diverse and the amount exceeds $75,000 The court lacks diversity jurisdiction because the amount in controversy does not exceed $75,000 The court has federal-question jurisdiction over the contract claim The court must remand the case to state court

Correct Answer:

The court has diversity jurisdiction because the parties are completely diverse and the amount exceeds $75,000

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