Amount in Controversy

Definition

Amount in controversy refers to the total dollar value of damages sought in a lawsuit. This figure determines which court has jurisdiction over your case, what procedural rules apply, and may affect the discovery and trial procedures available to you. Different courts have different jurisdictional thresholds—for example, small claims courts handle lower-value disputes while district courts handle larger claims.

How It’s Used in Personal Injury Cases

In Texas, the amount in controversy affects where your case is filed and what procedures apply. Justice courts handle cases up to $20,000, county courts handle cases up to $200,000 (or higher in some counties), and district courts have no upper limit. The amount in controversy also affects whether mandatory alternative dispute resolution is required and may determine whether a case can be removed to federal court. For federal court jurisdiction based on diversity of citizenship, the amount in controversy must exceed $75,000. Attorneys strategically consider amount in controversy when deciding where to file and how to value claims.

Practical Example

You’re injured in a car accident with $15,000 in medical bills, $5,000 in lost wages, and significant pain and suffering. Your attorney estimates your total case value at approximately $50,000. This amount in controversy determines that your case should be filed in county court rather than justice court. However, if investigation reveals your injuries are more serious than initially thought and the case value exceeds $75,000 while the defendant is from another state, the defendant might be able to remove the case to federal court, changing the procedural rules and potentially the litigation strategy.

Why It Matters to Your Case

The amount in controversy affects everything from which court hears your case to what discovery tools are available to what ADR procedures may be required. In some Texas courts, cases under $30,000 can opt out of mandatory mediation, while larger cases cannot. Understanding amount in controversy helps your attorney make strategic decisions about where to file, how to structure claims, and how to prepare for litigation. The Texas Courts website provides information about court jurisdiction and procedures based on case value.

Key Takeaway

Amount in controversy is the dollar value of your claim, which determines court jurisdiction and applicable procedures. Understanding this concept helps ensure your case is filed in the appropriate court with the procedural advantages best suited to your situation.