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Removal in Diversity Cases Limited

July 25, 1958

In 1958, Congress further limited the scope of removal in cases based on diversity of citizenship. The amount in controversy requirement was raised from $3,000 to $10,000 and removal in workers’ compensation cases was eliminated. Moreover, Congress declared that corporations – which had since the Supreme Court's 1844 decision in Louisville Railroad Company v. Letson been considered citizens only of their state of incorporation – were also citizens of the state in which they primarily did business, thereby reducing the number of diversity jurisdiction cases involving corporate parties.

See also:

Diversity Jurisdiction

Cases that Shaped the Federal Courts: Louisville, Cincinnati, and Charleston Rail-road Co. v. Letson (1844)