In a case of Diversity of Citizenship, what must each claim exceed to be heard in Federal Courts?

In a case involving Diversity of Citizenship, for a claim to be heard in Federal Courts, the amount in controversy must exceed $75,000. This threshold is set by the statute governing federal diversity jurisdiction, specifically 28 U.S.C. § 1332. The purpose of this requirement is to ensure that federal courts are reserved for cases with significant stakes involved, reflecting a need for federal jurisdiction over disputes that may otherwise involve substantial state law issues.

The requirement promotes the idea that federal courts should handle serious disputes, providing a forum where parties from different states can resolve significant legal issues without bias from a state court. This amount excludes costs and interest and focuses solely on the actual claim. Claims that do not meet this threshold must typically be heard in state rather than federal court, ensuring that only those claims deemed substantial enough to warrant federal attention are allowed access to federal judiciary resources.