diversity of citizenship

Diversity of citizenship is a legal concept used in U.S. federal courts to determine when they can hear a case involving parties from different states or countries. It exists to ensure neutral federal jurisdiction in disputes between residents of different locations. Specifically, a case has diversity of citizenship if the parties are citizens of different states or one is from a different country, and the amount in controversy exceeds a certain amount (usually $75,000). This rule helps prevent local bias and promotes fair treatment by allowing federal courts to hear such cases.