In a federal diversity case involving a technology company and an engineer, why might the court determine that there is no federal jurisdiction?

In a federal diversity case, federal jurisdiction requires both complete diversity between the parties and the amount in controversy to exceed $75,000. When considering why the court might determine that there is no federal jurisdiction, the scenario where the amount of relief requested is under $75,000 directly impacts this requirement. If the relief sought by the engineer, for example, does not meet this monetary threshold, the court lacks jurisdiction despite the potential diversity between the parties.

The relevance of the amount in controversy lies in the specific statutory requirement that necessitates exceeding $75,000 for federal jurisdiction in diversity cases. If the amount is below this threshold, the federal court will not have jurisdiction, and the case would need to be resolved in state court instead, regardless of the parties' diversity status.