The possibility of abolishing the general diversity jurisdiction of the federal courts has received increasing attention with the passage of an abolition bill by the House of Representatives in 1978. Discussion of abolition has tended to focus on such issues as the importance of reducing federal court caseloads, the appropriateness of transferring state law cases to state courts, and the extent to which prejudice against out-of-staters survives in state courts. Professor Rowe suggests that there would be several little-noticed but significant effects of abolishing diversity jurisdiction. He argues that abolition would elminate or greatly reduce some of the major difficulties in federal practice and procedure, make possible judicial rationalization of some areas of ancillary and pendent jurisdiction, and facilitate further statutory or rule reforms in the federal courts. The article concludes that these effects provide important additional support for abolition.
Thomas D. Rowe Jr., Abolishing Diversity Jurisdiction: Positive Side Effects and Potential for Further Reforms, 92 Harvard Law Review 963-1012 (1978)