Alice, a resident of State X, and Bob, a resident of State Y, file a lawsuit in federal court against XYZ Corporation, which is incorporated and has its principal place of business in State X, and Charlie, a resident of State Y, for breach of contract. The amount in controversy is $100,000. Does the federal court have diversity jurisdiction over this case?
No, because there is no federal question.
Yes, because the amount in controversy exceeds $75,000 and there is diversity between some parties.
Yes, because corporations are considered citizens of both their state of incorporation and principal place of business.
No, because not all plaintiffs are from different states than all defendants.
Federal courts require complete diversity, meaning no plaintiff shares a state of citizenship with any defendant. Here, Alice is from State X, and XYZ Corporation is also from State X, which eliminates diversity. Therefore, there is no diversity jurisdiction.
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