Final answer:
Jurisdiction in diversity cases arises when disputes involve parties from different states or involve a U.S. citizen and a citizen from another nation. These cases can be heard in federal courts.
Step-by-step explanation:
Jurisdiction is the power of a court to hear a case and make a binding legal judgment based on the facts presented. In the context of diversity cases, jurisdiction arises when a case involves matters between parties of different states or between a U.S. citizen and a citizen of another nation, with a minimum claim of $75,000 in damages. These cases can be heard in federal courts, as they have jurisdiction over disputes involving diversity of citizenship.