What are the two main bases for federal subject matter jurisdiction in civil cases, and what is required in each to maintain jurisdiction?

• A. Federal question jurisdiction exists when the claim arises under federal law; diversity jurisdiction requires complete diversity of citizenship and an amount in controversy over $75,000.
• B. Federal question jurisdiction exists only when the defendant is a resident of another state.
• C. Diversity jurisdiction exists only when there is a single plaintiff.
• D. Federal jurisdiction in civil cases is unlimited and does not require any specific basis.

Answer: (A)

Federal jurisdiction in civil cases comes from two pathways. One is federal question jurisdiction: a case arises under federal law when the claim is based on the Constitution, a federal statute, or a treaty, and it’s the plaintiff’s complaint that presents that federal issue (the well-pleaded complaint rule). There’s no dollar-amount threshold here.

The other pathway is diversity jurisdiction: this applies when parties are truly from different states and the amount in controversy exceeds $75,000. Specifically, every plaintiff must be a citizen of a different state from every defendant (complete diversity), and the total amount in dispute must exceed the $75,000 mark (not counting interest and costs).

So the best answer states that federal question jurisdiction exists under federal law, and diversity jurisdiction requires complete diversity of citizenship and an amount in controversy over $75,000.