CNMI Bar Practice Questions - Northern Mariana Islands Bar Examination Exam

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A plaintiff sues a defendant in federal court. The complaint alleges only a state-law breach of contract claim, the plaintiff is a citizen of California, the defendant is a citizen of Nevada, and the amount in controversy is $90,000. Does the federal court have subject-matter jurisdiction?

No, because the amount in controversy does not exceed $75,000 Yes, because the parties are diverse and the amount in controversy exceeds $75,000 No, because there is no diversity of citizenship between the parties Yes, but only if the defendant consents to federal jurisdiction

Correct Answer:

Yes, because the parties are diverse and the amount in controversy exceeds $75,000

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