What is a key factor for establishing diversity jurisdiction in federal court?

Diversity jurisdiction is a concept in federal law that allows a federal court to hear cases where the parties are citizens of different states, thereby preventing potential bias from state courts. To establish diversity jurisdiction, a key factor is the requirement of complete diversity among the parties involved in a lawsuit. This means that no plaintiff can be from the same state as any defendant.

This requirement ensures that the parties are completely diverse, reinforcing the intent of federal courts to provide a neutral forum when conflicts arise between parties from different states. If even one plaintiff shares a state of citizenship with any defendant, complete diversity is lacking, and the federal court will not have jurisdiction based solely on diversity.

While elements such as the monetary value of claims or the application of state law may be important in evaluating a case, they do not address the fundamental requirement of diversity jurisdiction, which hinges specifically on the diversity of citizenship among the parties involved.