Pete is a resident of Minnesota. Dena is a resident of Wisconsin. While she is visiting relatives in Minnesota, Dena drives negligently and collides with Pete at an intersection, totaling Pete’s new Ferrari and causing serious injury to Pete. Pete files suit in U.S. District Court seeking $500,000 in damages. The court has subject-matter jurisdiction because __________________.
Explanation
Answer: D - Pete and Dena are citizens of different states, and the amount in controversy exceeds $75,000. A federal court has subject-matter jurisdiction if either federal question or diversity of citizenship jurisdiction exists. Diversity of citizenship jurisdiction exists if no plaintiff and no defendant are citizens of the same state and the amount in controversy exceeds $75,000. Here, complete diversity exists because Pete is a citizen of Minnesota and Dena is a citizen of Wisconsin. The amount in controversy exceeds $75,000 because Pete claimed damages of $500,000.
