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73 Yale L.J. 7 (1963-1964)
For Maintaining Diversity Jurisdiction

handle is hein.journals/ylr73 and id is 35 raw text is: FOR MAINTAINING DIVERSITY JURISDICTION
JOHN P. FRANKt
THIs article is dedicated to The Judge--Charles Clark. Whether by daily
contact or occasional correspondence, I have felt Judge Clark's strength and
guidance for nearly all of the twenty-five years we commemorate today. In the
world of academics or judges in which I have known him, almost everyone has
integrity, but his is the ultimate. Here is a man who has never once consulted
his self-interest about anything. Association with him is a continuing post-
graduate course in absolute honesty and flawless courage. He is huge in all he
does, and a giant in his special interests-federal procedure and federal courts.
I am proud to be able to write in his honor on a topic in which he has deep
interest, and to know that he shares the conclusions I have reached.*
The American Law Institute proposals on federal jurisdiction recommend
revision of the Judicial Code to eliminate between fifty and sixty per cent of
the present diversity cases. These would be transferred from the federal to
the state courts. I would eliminate substantially none of these cases, and so
present an opposing point of view.
The principal devices suggested for cutting the diversity jurisdiction are,
first, the elimination of all cases brought by residents of the state in which
they sue regardless of the diversity of the defendant; and second, a bar against
suits by foreign corporations which have operated in a state sufficiently to have
become permanently established there. The details of the proposals, and of
the attendant revisions of process and venue are put outside this discussion.
Assume the point of view, and the execution is admirable; the issue is the
point of view.
tMr. Frank is a member of Lewis, Roca, Scoville, Beauchamp & Linton, Phoenix,
Arizona.
*1 am authorized to state that in addition to Judge Clark, Judge J. Skelly Wright, of
the Court of Appeals for the District of Columbia; Professor James W. Moore, author
of M ORe'S FEDERAL PRACTICE (1960) and Professor of Law at Yale University; and
Professor Charles A. Wright, author of the current edition of BARRON & HoLTzoFF,
FEDERAL PRACTICE AND PROCEDURE (1961) and Professor of Law at the University of
Texas, concur generally in the conclusion here reached.
1. The ALI has been requested by the Chief Justice of the United States to prepare
extensive proposals for a possible revision of the Judicial Code. These proposals have
been prepared by an able committee with Professor Richard Field of Harvard as Reporter.
The introductory two or three sections of that Code were favorably considered at the
May, 1963 meeting of the ALI. While, insofar as the Institute itself is concerned, the work
is just beginning, one of the provisions approved did involve the principle of a substantial
cut in the jurisdiction.

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