Civil Procedure Multistate Bar Practice Exam

Which time frame represents the outer limit for removal based on diversity jurisdiction?

1. 30 days

2. 90 days

3. 180 days

4. 1 year

The correct answer is: 1 year

In the context of removal based on diversity jurisdiction, the outer limit for removal is indeed one year. This time frame is outlined in the relevant federal statute, specifically 28 U.S.C. § 1446(b)(2)(B). The one-year period applies to cases initially brought in a state court that can later be removed to federal court based on diversity jurisdiction. The rationale behind this time limit is to ensure that defendants do not benefit from delays in seeking removal once a case has progressed significantly in the state court system. It provides a clear timeline for defendants to act and encourages expedience in the resolution of disputes. If a defendant wishes to remove a case on the basis of diversity jurisdiction, they must do so within one year of the commencement of the action. In contrast, shorter time frames like 30 days for standard removal procedures are generally applicable when a case is initially removable. However, for diversity jurisdiction specifically, the one-year limit is a crucial rule to understand and remember. This ensures clarity and fairness in the judicial process and provides parties with a defined period within which to bring a case in front of a federal court.