Diversity jurisdiction

Diversity jurisdiction refers to the power of the Federal courts of the United States to hear cases and controversies in which the opposing parties are not from the same state and the amount in controversy exceeds $75,000, "exclusive of interest and costs" (28 USC 1332).

Under the U.S. Supreme Court's decision in Erie Railroad Co. v. Tompkins (the "Erie doctrine"), the law applied in a diversity case is the law of the state in which the action is filed.

Additionally, the Class Action Fairness Act of 2005 authorizes Federal courts to hear class actions where the amount in controversy exceeds $5,000,000, unless all of the parties are from the same state.

## See also[edit]

* Subject-matter jurisdiction