Diversity Jurisdiction
the power of the federal courts to hear matters of state law if the opposing parties are from different states and the amount in controversy exceeds $75,000
Diversity jurisdiction refers to the jurisdiction of federal courts over civil cases where the parties are from different states or countries. The purpose of diversity jurisdiction is to provide a neutral forum for parties from different jurisdictions to resolve their disputes.
In order for a case to be heard in federal court under diversity jurisdiction, certain requirements must be met. First, the parties in the case must be citizens of different states or countries. Second, the amount in controversy must exceed $75,000. Finally, the case must be a civil matter rather than a criminal matter.
It is important to note that diversity jurisdiction is optional – plaintiffs can choose to file the case in state court instead of federal court. However, if the case meets the requirements for diversity jurisdiction and the plaintiff chooses to file in federal court, the defendant must also abide by that choice and cannot force the case to be heard in state court.
Overall, diversity jurisdiction plays an important role in the American judicial system by providing a fair and impartial forum for parties from different locations to have their disputes resolved.
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