Breach of Contract in Federal Court

<h2>Federal Jurisdiction for Contract Disputes</h2><p>Contract disputes typically arise under state law, but federal courts have jurisdiction when the parties are diverse (citizens of different states) and the amount in controversy exceeds $75,000. Federal courts apply the substantive law of the relevant state while following federal procedural rules.</p><h2>Key Considerations</h2><ul><li><strong>Complete diversity:</strong> No plaintiff can be a citizen of the same state as any defendant</li><li><strong>Amount in controversy:</strong> Must exceed $75,000, exclusive of interest and costs</li><li><strong>Choice of law:</strong> Federal courts apply state substantive law under <em>Erie Railroad Co. v. Tompkins</em></li><li><strong>Removal:</strong> Defendants can remove state court cases to federal court if diversity exists</li></ul>