ELI5: Explain Like I'm 5

Amount in controversy

Have you ever had an argument about something and you wanted someone else to help you solve it? Sometimes, when we have arguments about money or things we own, we need to ask a judge to help us decide who is right. This is called going to court. But going to court is not always free, and so we need to figure out how much money we are arguing about so that the judge knows how much we will have to pay to go to court.

The amount in controversy is the total amount of money that people are arguing about in court. This includes any damages or money that someone wants to get back. For example, if someone says that their car was damaged and they want $10,000 to fix it, then the amount in controversy would be $10,000. Or if someone says that they were hurt by someone else and they want $50,000 for their medical bills, then the amount in controversy would be $50,000.

Sometimes, the amount in controversy is important because it can decide which court we go to. For example, if someone is arguing about $10,000 or less, then they might go to a small claims court. But if they are arguing about more than $10,000, then they might go to a higher court where there are more lawyers and judges.

So, the amount in controversy is like a way to decide how much money we are talking about when we have an argument in court. It helps us figure out what kind of court we need to go to and how much it might cost us.