Civil Procedure Multistate Bar Practice Exam

Which actions are excluded from diversity jurisdiction?

1. Personal injury lawsuits

2. Contract disputes

3. Divorce and child custody

4. Federal civil rights violations

The correct answer is: Divorce and child custody

Diversity jurisdiction is a way for federal courts to have jurisdiction over cases when parties are from different states and the amount in controversy exceeds a specified threshold. However, there are certain actions that are not eligible for diversity jurisdiction, primarily because they are governed by state law or because they involve relationships that the federal courts prefer to leave to state jurisdiction. Divorce and child custody cases fall into this category because they primarily concern familial and domestic relations, which states traditionally handle. The reasoning behind this exclusion is that these matters require a deeper understanding of state laws and local customs, which are often quite nuanced and not easily transferable to a federal standard. Additionally, involving federal courts in such personal matters could result in inconsistent rulings and complicate family law proceedings. In contrast, personal injury lawsuits, contract disputes, and federal civil rights violations are generally handled under diversity jurisdiction if the requirements are met. Personal injury and contract disputes can arise from varied situations and are often suitable for federal resolution, while federal civil rights violations are inherently federal in nature, thus allowing federal jurisdiction irrespective of the parties' state of citizenship.