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Diversity Jurisdiction
Diversity jurisdiction is a rule that lets a case be heard in federal court when the people on each side live in different states and the amount of money in dispute is large enough, as set by law.
What it actually is
It is a basis for federal court power to decide a case, applying when no plaintiff shares a state of citizenship with any defendant and the amount in controversy meets a statutory minimum. This appears early in a lawsuit when the plaintiff chooses a court or the defendant moves to transfer the case from state to federal court.
Why it matters in your case
It determines whether your case stays in state court or moves to federal court, which can change the rules, procedures, and even the jury pool. This matters because federal courts may handle the case differently, affecting how quickly it proceeds and what legal arguments are available.
The common misunderstanding
A common misunderstanding is that any case involving people from different states automatically goes to federal court, but the amount in dispute must also be high enough and all plaintiffs must be from different states than all defendants—partial diversity is not enough.
Get the actual rule
Definitions are orientation; rules are authority
This page explains the concept. When it matters to your case, read the rule that governs it in your court — we hold Texas, federal and Washington court rules word for word, and every state's official resources are on the state pages. If someone cites a case at you, check that it exists first.
Related
Terms that travel with this one
General explanation, not legal advice, and not specific to any state — procedures and deadlines vary by jurisdiction and court. If you can get a lawyer or free legal aid, do: every real option.