---
title: "Diversity Jurisdiction"
type: Legal Term
source: https://casebriefly.com/legal-terms/diversity-jurisdiction
---

# Diversity Jurisdiction

Diversity jurisdiction under 28 U.S.C. Section 1332 allows federal courts to hear cases between citizens of different states where the amount in controversy exceeds $75,000. Complete diversity is required — no plaintiff may be a citizen of the same state as any defendant. For individuals, citizenship is determined by domicile; for corporations, by the state of incorporation and the principal place of business (the 'nerve center' test from Hertz Corp. v. Friend).

## Related Terms

- subject-matter-jurisdiction
- federal-question-jurisdiction
- erie-doctrine

## Related Cases

- hertz-corp-v-friend
- exxon-mobil-v-allapattah
- capron-v-van-noorden

## Example

A New York citizen sues a Texas citizen for $100,000 in a contract dispute. Because the parties are diverse and the amount exceeds $75,000, there is diversity jurisdiction.

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Source: [Diversity Jurisdiction — CaseBriefly](https://casebriefly.com/legal-terms/diversity-jurisdiction)