Answered

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A corporation filed a breach of contract action against another corporation in the United States District Court for the District of State A on the basis of diversity of citizenship jurisdiction. The action seeks $80,000 in damages. The plaintiff corporation was incorporated in State B and has its principal place of business in State C. The defendant corporation was incorporated in State C and has its principal place of business in State A. The defendant corporation filed a motion to dismiss the action for lack of subject matter jurisdiction. Will the defendant corporation's motion be granted

Sagot :

Answer:

Yes because both the plaintiff corporation and the defendant corporation have a common state citizenship

Explanation:

A federal court can have federal subject-matter jurisdiction over a case based on diversity jurisdiction, in which is required the jurisdictional amount  is more than $75,000 and that non of the plaintiffs has the same citizenship of a state as any of the defendants

The citizenship of a corporation is both the state of incorporation and the corporation's principal place of business

Given that the plaintiff corporation was incorporated in State B and has State C as its principal place of business, the citizenship of the plaintiff corporation is both State B and State C

Similarly, the defendant corporation's citizenship, based on the state the corporation was incorporated and the state of principal place of business are State C and State A

Therefore, the plaintiff corporation and the defendant corporation have the same citizenship of a state, which is State C, and the defendant corporation's motion will be granted

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