Diversity Jurisdiction
Federal court power over certain state-law disputes between citizens of different states when the amount in controversy is high enough.
Governing rule: 28 U.S.C. § 1332
Plain-English definition
Diversity jurisdiction allows a federal court to hear a state-law case when the parties are citizens of different states and the amount in controversy exceeds the statutory threshold. In most cases, complete diversity is required, meaning no plaintiff can share state citizenship with any defendant.
How it works
A party invoking diversity must plead citizenship, not merely residence. Corporations usually have citizenship where they are incorporated and where they have their principal place of business.
Why it matters
Diversity is a common reason defendants remove cases from state court. A mistake in citizenship allegations can derail the case months into litigation.