Diversity jurisdiction allows federal courts to hear cases involving which of the following?

Diversity jurisdiction is a concept in federal law that permits federal courts to hear cases where the parties are from different states, provided that the amount in controversy exceeds a specified threshold. This principle is designed to prevent state court bias against out-of-state defendants and to provide a neutral forum for litigants.

The correct answer highlights that diversity jurisdiction specifically involves parties who are citizens of different states. This means that if a plaintiff from one state files a lawsuit against a defendant from another state, the case can be brought in federal court rather than state court. This promotes fairness by allowing parties with different citizenship to seek adjudication in a federal system that is perceived as more impartial.

The other choices do not accurately represent the scope of diversity jurisdiction. For example, limiting jurisdiction to federal employees ignores the broader context of the law, while international treaties relate more to federal question jurisdiction rather than diversity jurisdiction. Additionally, state laws alone do not qualify for this jurisdiction. Thus, the correct answer captures the core concept of diversity jurisdiction effectively.