Louisiana Private Investigator Licensing Practice Exam

What type of jurisdiction allows federal district courts to hear civil cases between citizens of different states involving claims over $75,000?

1. General Jurisdiction

2. Subject Matter Jurisdiction

3. Diversity Jurisdiction

4. Personal Jurisdiction

The correct answer is: Diversity Jurisdiction

Diversity jurisdiction is specifically designed to allow federal district courts to hear civil cases that involve parties from different states when the amount in controversy exceeds $75,000. This legal principle is rooted in the U.S. Constitution and federal statute, aimed at avoiding any potential bias that state courts might have against out-of-state defendants. By addressing cases under diversity jurisdiction, federal courts provide a neutral forum, facilitating fair treatment for all parties involved due to the crossing of state lines. General jurisdiction refers to a court's ability to hear any case within its geographic area and is not limited to cases involving parties from different states. Subject matter jurisdiction defines a court's authority to hear particular types of cases rather than focusing on the parties' locations. Personal jurisdiction is concerned with a court's power over the individuals involved in the case and is generally rooted in their connection to the jurisdiction's geographic area.