What is the amount-in-controversy threshold for diversity jurisdiction?

• A. Exceed $100,000, exclusive of interest and costs.
• B. Exceed $75,000, exclusive of interest and costs.
• C. Exceed $50,000, exclusive of interest and costs.
• D. Exceed $25,000, exclusive of interest and costs.

Answer: (B)

Diversity jurisdiction hinges on the amount in controversy being more than a fixed dollar threshold. For this purpose, the threshold is seventy-five thousand dollars, exclusive of interest and costs. That means the plaintiff must plead or prove more than $75,000 in monetary relief, and neither interest nor court costs are counted toward meeting the limit. A claim of exactly $75,000 does not qualify, while a claim for $75,000 plus any interest or costs would still be measured by the amount of damages alone for the threshold, with interest and costs counted separately.