When the Court refused to allow the banks to remove the case to federal court based on federal question jurisdiction, the banks argued for removal on diversity grounds. The second type of jurisdiction is “diversity of citizenship,” which means that the parties involved in the lawsuit must be citizens of different states, and there must be at least $75,000 at stake. The first is “federal question,” and involves cases that are based upon any federal law. Federal courts have limited jurisdiction, and can decide only two types of cases. Hampton Bankshares, Inc., et al., two Virginia banks were sued by their former employee, a North Carolina citizen, and the banks attempted to remove the lawsuits from Virginia state court to federal court. According to a recent ruling in a case of first impression arising out of the Norfolk Division of the Eastern District of Virginia, a defendant who is a citizen of the forum state cannot remove a diversity case to federal court, even if the defendant has not yet been served with formal process, because to hold otherwise would be “absurd.”
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