Diversity jurisdiction

Diversity jurisdiction lets federal courts hear cases that are normally about state law when the parties are citizens of different states and the dispute is for more than a set dollar amount, currently 75,000 dollars. The idea is to give out-of-state parties a neutral forum so they do not have to litigate in the other side's home state court. There has to be complete diversity, meaning no plaintiff shares a state of citizenship with any defendant. Companies are usually citizens of both their state of incorporation and the state of their main headquarters. Diversity jurisdiction is a major source of federal court business.