The federal court has jurisdiction over disputes between citizens of different states where the disputes exceed $75,000. 28 U.S.C. Section1332 (a) (1). If a New Jersey citizen sues a New York citizen for more than $75,000, then the federal court will have jurisdiction. Generally, a person is considered a citizen of the state of his or her residence. Swiger v. Alleghany Energy, Inc., 540 F.3d 179, 182 (3d Cir. 2008).
There must also be complete diversity, meaning that the plaintiff cannot be a citizen of the same state as any defendant. Midlantic National Bank v. Hansen , 48 F.3d 693, 696 (3d Cir. 1995). For example, if a New Jersey citizen sues two parties, one who is a New York citizen and the other a New Jersey citizen, then the federal court will not have diversity jurisdiction.
