Define: Amount In Controversy

Amount in controversy refers to the monetary value of damages or relief sought by a party in a legal dispute. It is a crucial factor in determining whether a case meets the jurisdictional requirements for filing in a particular court, particularly in cases involving diversity jurisdiction or federal question jurisdiction in the United States. For example, to qualify for federal diversity jurisdiction, the amount in controversy must exceed a specified threshold set by law, currently $75,000. Courts use the amount in controversy to assess their jurisdiction over a case and may dismiss claims that fail to meet the minimum threshold. Determining the amount in controversy involves evaluating the monetary value of the claims asserted by the parties, including damages, penalties, or monetary relief sought. It is essential for parties to accurately calculate and plead the amount in controversy to ensure that their case is properly adjudicated in the appropriate court.

The amount in controversy refers to the monetary value of the damages or relief sought by a plaintiff in a lawsuit. It is a crucial factor in determining whether a court has jurisdiction over a case. In civil litigation, the amount in controversy must meet a certain threshold set by law to establish the court’s jurisdiction.

The amount in controversy is typically calculated by considering the total value of the plaintiff’s claims, including compensatory damages, punitive damages, and any other relief sought. It may also include attorney fees and costs associated with the lawsuit.

The purpose of the amount in controversy requirement is to prevent frivolous lawsuits from clogging the court system. By setting a minimum threshold, courts ensure that only significant disputes are heard, while smaller claims are resolved through alternative means, such as small claims courts or arbitration.

The determination of the amount in controversy is made at the time the lawsuit is filed. If the plaintiff’s claim exceeds the jurisdictional threshold, the court has subject-matter jurisdiction over the case. However, if the amount in controversy is not met, the court may lack jurisdiction and the case may be dismissed or transferred to a court with proper jurisdiction.

It is important for plaintiffs to accurately calculate the amount in controversy to ensure that their case is heard in the appropriate court. Conversely, defendants may challenge the plaintiff’s calculation if they believe it is inflated or inaccurate.

Overall, the amount in controversy is a key factor in determining whether a court has jurisdiction over a case and plays a significant role in shaping the litigation process.

Some courts have jurisdiction, or the power to hear cases, only if the amount in controversy is more or less than an amount specified by law. For example, federal district courts can hear lawsuits concerning questions of federal law and

controversies between citizens of different states, but they can do this only if the amount in controversy is more than $50,000. Some lower-level state courts, such as those that hear small claims, have no authority to hear controversies involving more than certain maximum amounts.

When the amount in controversy determines the court’s authority to hear a particular case, it may also be called the jurisdictional amount.

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 28th April 2024.