Understanding the Aggregation Doctrine: Legal Insights and Implications
Definition & meaning
The aggregation doctrine is a legal principle that prevents a party from combining multiple claims to meet the minimum amount required for federal diversity jurisdiction. This doctrine ensures that each individual claim must independently satisfy the amount-in-controversy requirement for a federal court to have jurisdiction over the case.
Legal use & context
The aggregation doctrine is primarily used in civil litigation, particularly in cases involving federal diversity jurisdiction. This doctrine is relevant when a plaintiff files a lawsuit in federal court and needs to establish that the total amount in controversy exceeds a specific threshold, typically $75,000. It is essential for users to understand this doctrine when considering whether to file in federal or state court, as it may affect their strategy and choice of legal forms.
Real-world examples
Here are a couple of examples of abatement:
For instance, if a plaintiff has two claims against a defendant, one for $40,000 and another for $50,000, the plaintiff cannot combine these amounts to exceed the $75,000 threshold for federal jurisdiction. Each claim must stand on its own merits.
(hypothetical example) A person sues a company for $30,000 in damages for breach of contract and $20,000 for negligence. Since neither claim meets the $75,000 requirement on its own, the aggregation doctrine prevents the plaintiff from bringing the case in federal court.