If the claim is moved to less than $75,000 as a result of discovery, does this destroy diversity jurisdiction?

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The correct answer is that a claim moved to less than $75,000 as a result of discovery does not destroy diversity jurisdiction if the plaintiff believed in good faith that the claim was for more than the jurisdictional amount at the time of filing. This principle is grounded in the idea that diversity jurisdiction exists to provide a neutral forum for parties from different states, and maintaining this jurisdiction depends on the amount in controversy at the time the lawsuit is initiated.

A plaintiff's good faith belief about the amount in controversy is critical. If the amount in controversy is originally over $75,000, diversity jurisdiction is established, even if subsequent developments in the case show that the amount is now less than this threshold. The intent and circumstances at the time of filing are what primarily determine jurisdiction.

The other situations mentioned can introduce different considerations. For example, if the claim was deliberately reduced by the plaintiff to fall below $75,000 for the purpose of defeating diversity jurisdiction, that could be viewed differently. However, as long as the original claim was made in good faith and met the jurisdictional amount, the diversity jurisdiction remains intact despite any later change in the claim's value.

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