To have diversity jurisdiction, there are two requirements:
- Jurisdictional Amount Requirement
- the jurisdictional amount exceeds $75,000
- Complete Diversity Requirement
Diversity jurisdiction is somewhat modified in class action lawsuits. Specifically, the Class Action Fairness Act of 2005 (CAFA) modified the complete diversity requirement. For a federal court to have subject-matter jurisdiction over a class action, the parties need only to satisfy minimal diversity. Minimal diversity is when at least one plaintiff is a resident from a state that is different from at least one defendant. This makes it easier for a class action lawsuit to proceed in federal court than prior to CAFA's enactment.
In Americold Realty Trust v. ConAgra Foods, Inc, 577 U.S. __ (2016), the Supreme Court held that for the purposes of diversity jurisdiction, the citizenship of a trust is based on the citizenship of its members, which includes the beneficiaries as well as the trustees.