Asked by sonia umezurike on May 12, 2024

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Cooper sues Company A in state court in South Carolina, where he lives, for negligence alleging personal injury and property damage of $100,000 after a truck driven by an employee of Company A rear-ended his pickup truck. Company A is incorporated in Delaware, has its headquarters in New York, but does a substantial amount of business in South Carolina. Claiming diversity of citizenship, Company A seeks removal to federal district court, but Cooper opposes the motion. Which of the following is true regarding whether the case may be properly removed to federal district court?

A) The amount in controversy satisfies diversity requirements; and if Company A's nerve center is in a state other than South Carolina, then the case may be properly removed to federal court.
B) The amount in controversy satisfies diversity requirements; and because Company A is incorporated and has its headquarters in a state other than South Carolina, the case may be properly removed to federal court.
C) Because the amount in controversy satisfies diversity requirements and Company A is incorporated in a state other than South Carolina, the case may be properly removed to federal court regardless of where Company A's headquarters, nerve center, or principal place of business is located.
D) Because the amount in controversy satisfies diversity requirements and Company A is headquartered in a state other than South Carolina, the case may be properly removed to federal court regardless of where Company A is incorporated and regardless of the location of its nerve center.
E) Because the amount in controversy fails to satisfy jurisdictional requirements, regardless of the location of Company A, the case may not be removed to federal court.

Diversity of Citizenship

A legal principle that allows federal courts in the United States to hear cases where the parties involved are citizens of different states or countries.

Federal District Court

is a general trial court of the United States federal court system that has both original jurisdiction over federal cases and questions involving federal law.

Removal

The act of transferring a case from one court to another, typically from a state court to a federal court in the legal context.

  • Ascertain the prerequisites for jurisdiction predicated on citizenship diversity and its effect on the initiation of legal proceedings.
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Carlos EspinalMay 13, 2024
Final Answer :
A
Explanation :
The amount in controversy exceeds $75,000, and diversity of citizenship exists if Company A's principal place of business (nerve center) is outside South Carolina, allowing for removal to federal court.