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Glossary

Amount in controversy

The dollar value of what is at stake in a lawsuit, which has to be above a set threshold for some federal courts to hear the case.

For federal diversity cases, the amount in controversy currently has to exceed 75,000 dollars. Courts usually accept the amount claimed in the complaint as long as it is made in good faith. If the defendant believes the real amount at stake is much smaller, they can challenge it, but they have to show to a legal certainty that the case is worth less. The amount can include compensatory damages, punitive damages, and the value of court orders telling someone to do or stop doing something. Attorneys' fees count only if a statute or contract allows them.