What was the basis for the jury trial in the federal diversity action filed by the company from State A?

In a federal diversity action, the right to a jury trial is typically established based on the requirements that provide jurisdiction to the federal court, which include diversity of citizenship between the parties and an amount in controversy that exceeds a certain threshold. In this situation, the federal court’s jurisdiction stems from the fact that the parties are citizens of different states, meaning that the company from State A and the distributor are from separate jurisdictions.

Diversity of citizenship is a foundational element for federal jurisdiction under the requirements of the Constitution and federal statutes. This principle protects against potential bias in state courts against out-of-state parties by allowing them to bring their suits in a neutral federal forum. Therefore, the existence of diverse citizenship that meets the federal requirements is what fundamentally supports the right to a jury trial in this context, rather than the demand for a jury trial made by a party or the specifics regarding the nature of damages claimed. The amount in controversy is also a relevant consideration for jurisdiction, but it does not, by itself, establish the right to a jury trial without the diversity component.