What is the requirement for subject matter jurisdiction based on diversity of citizenship?

The requirement for subject matter jurisdiction based on diversity of citizenship necessitates that the amount in dispute exceeds $75,000. This threshold is established by the federal statute, 28 U.S.C. § 1332, which dictates that for a federal court to hear a case based solely on diversity jurisdiction, the monetary claim must surpass this specific amount. Additionally, diversity jurisdiction exists when the parties involved are citizens of different states, which means that there is a need for a significant amount in controversy to address potential disparities in legal outcomes based on regional differences.

While the other options present aspects related to jurisdiction and citizenship, they do not address the specific monetary requirement necessary for diversity jurisdiction. For instance, having one defendant with different citizenship than a plaintiff is insufficient without the necessary amount in dispute. Similarly, while it is true that a corporation can be a citizen of its place of incorporation as well as its principal place of business, this does not pertain to the amount in controversy. Lastly, personal jurisdiction pertains to the power of a court over a particular defendant and is a separate issue from the subject matter jurisdiction based on diversity. Hence, understanding that the jurisdiction's monetary requirement is a fundamental aspect of federal diversity cases highlights why exceeding $75,000 becomes crucial in