A federal court's power to hear any case where the amount in controversy exceeds $75,000 and no plaintiff shares a state of citizenship with any defendant. See 28 U.S.C. § 1332(a). Diversity jurisdiction is one of the two main types of subject-matter jurisdiction in federal court.
Definition from Nolo’s Plain-English Law Dictionary
The power of the federal courts to decide civil disputes between citizens of different states, provided the amount the plaintiff seeks in damages exceeds an amount set by Congress (currently $75,000). The so-called citizens may include companies incorporated or doing business in different states or a citizen of a foreign country. However, note that the federal courts traditionally refuse to exercise their diversity jurisdiction over cases involving domestic relations and probate.
Diversity jurisdiction exists only when the amount in controversy is over $75,000 and there is complete diversity of citizenship between the parties. For example, diversity jurisdiction exits when a citizen of Pennsylvania is suing a citizen of Minnesota and claiming $76,000 in damages. In cases with more than two parties, complete diversity requires that there not be citizens of the same state on different side of the litigation. For example, diversity jurisdiction exists if a citizen of Pennsylvania sues a citizen of Minnesota and a citizen of New York in the same suit, but does not exist if the Pennsylvania citizen attempts to sue a Minnesota citizen and another Pennsylvania citizen. 2. What is the reason for having exclusive federal jurisdiction in issues such as bankruptcy, copyright and patent and trademarks?
Those cases are heard in federal courts of limited jurisdiction, such as US Bankruptcy Court, Court of International Trade, etc., because they primarily involve federal laws. The United States Court of Appeals for the