Opinion ID: 150487
Heading Depth: 2
Heading Rank: 2

Heading: Choice of Law and Jurisdiction

Text: In the district court, GMAC suggested the substantive law of Wisconsin applied to Appellant's claims, and under Wisconsin law, Appellants could not meet 28 U.S.C. § 1332's amount in controversy requirement because their damages would be capped at $50,000. Although neither party challenges the district court's decision to apply the substantive law of Iowa to Appellants' claims or the court's resulting determination diversity jurisdiction existed, subject matter jurisdiction is a threshold question we must address at the outset. See Sianis v. Jensen, 294 F.3d 994, 997 (8th Cir.2002). Reviewing the district court's choice of law determination de novo, see Donaldson Co. v. Burroughs Diesel, Inc., 581 F.3d 726, 731 (8th Cir.2009) (standard of review), we agree with the district court's well-reasoned analysis of Iowa's choice of law rules and particularly Veasley v. CRST Int'l, Inc., 553 N.W.2d 896, 897-99 (Iowa 1996) (applying Iowa law in a negligence action brought by an Iowa resident against the owner of a vehicle that caused an accident which injured the Iowa resident in Arizona). Because Iowa law applies to Appellants' claims, and Iowa law does not impose a $50,000 damages cap on Appellants' claim, we are satisfied diversity jurisdiction exists.