
Diversity Jurisdiction
Diversity jurisdiction is a legal principle that allows federal courts to hear cases where the parties are from different states or countries. This is meant to ensure a neutral forum for disputes that might arise between residents of different jurisdictions. For a federal court to take jurisdiction based on diversity, the amount in controversy must exceed $75,000. Essentially, it helps prevent local biases by providing a fair platform for litigants from different locations to resolve their legal issues.