Amount in Jurisdiction Is the Most That the Plaintiff Can Possibly Recover
Federal Jurisdiction
April 4, 2011
On April 1, 2011, the Seventh Circuit clarified the standard to be applied to determine whether the amount in controversy meets the minimum for federal jurisdiction in Back Doctors Ltd. v. Metropolitan Prop. & Cas. Ins. Co., ___ F.3d ___ (7th Cir. 2011), Case No. 11-8003. If a defendant makes a good-faith estimate of the stakes, then that estimate controls unless recovery exceeding the jurisdictional minimum would be legally impossible.
Lessons:
UPDATE
The 7th Circuit reinforced this holding in ABM Security Services, Inc. v. Davis, ___ F.3d ___ (7th Cir. 2011), Case No. 11-8001.
On April 1, 2011, the Seventh Circuit clarified the standard to be applied to determine whether the amount in controversy meets the minimum for federal jurisdiction in Back Doctors Ltd. v. Metropolitan Prop. & Cas. Ins. Co., ___ F.3d ___ (7th Cir. 2011), Case No. 11-8003. If a defendant makes a good-faith estimate of the stakes, then that estimate controls unless recovery exceeding the jurisdictional minimum would be legally impossible.
Lessons:
- If the defendant's estimates that the amount in controversy exceeds the jurisdictional minimum, then the federal court will have jurisdiction if it is possible for the plaintiff to recover that amount.
UPDATE
The 7th Circuit reinforced this holding in ABM Security Services, Inc. v. Davis, ___ F.3d ___ (7th Cir. 2011), Case No. 11-8001.
Brad A. Catlin
Price Waicukauski & Riley, LLC
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