Guam Bar Practice Questions - Guam Bar Examination (NextGen UBE) Exam

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A plaintiff from California sues a defendant from Texas in federal court, alleging state-law breach of contract with $90,000 in damages. The defendant moves to dismiss for lack of subject-matter jurisdiction. How should the court rule?

Deny the motion, because the parties are completely diverse and the amount in controversy exceeds $75,000 Grant the motion, because diversity jurisdiction requires the amount in controversy to exceed $75,000 and federal question jurisdiction is absent Grant the motion, because contract claims must be brought in state court Deny the motion, because supplemental jurisdiction applies

Correct Answer:

Deny the motion, because the parties are completely diverse and the amount in controversy exceeds $75,000

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