Horton v. Liberty Mutual Insurance

The Court turns a new furrow in the field of diversity jurisdiction today and, in so doing, plows under a rule of almost a quarter of a century’s standing — the rule that in determining jurisdiction, “the sum claimed by the plaintiff controls if the claim is apparently made in good faith.” St. Paul Indemnity Co. v. Red Cab Co., 303 U. S. 283, 288 (1938). Here the respondent Insurance Company filed suit “to set aside” an award of $1,050 given Horton by the Texas Industrial Accident Board. The Court, instead of testing the jurisdictional amount by this sum, looks instead to allegations of the…