Berkley National Insurance Company v. Lawrence Gabriel Nora

Summary

The United States District Court for the Central District of California ordered the parties to show cause why the action should not be dismissed for lack of subject matter jurisdiction. The court questioned whether the complaint adequately established that the amount in controversy exceeded $75,000 and directed the parties to respond in writing within fourteen days.

Holdings

1. A federal court must examine its subject-matter jurisdiction sua sponte before proceeding to the merits, and it must dismiss the action if it determines at any time that subject-matter jurisdiction is lacking.
2. A complaint invoking diversity jurisdiction must plausibly allege that the amount in controversy exceeds $75,000, and when the court questions that allegation, the party asserting jurisdiction must establish the amount in controversy by a preponderance of the evidence.

Questions Presented

1. Whether the Complaint adequately established federal subject-matter jurisdiction under the diversity-jurisdiction statute by plausibly alleging and, if necessary, proving that the amount in controversy exceeded $75,000.
2. What response is required when the court questions the sufficiency of a plaintiff's jurisdictional allegations before proceeding to the merits.

Disposition

other