Jurisdiction is the power of a court to hear a particular case. For a court has jurisdiction, it must have jurisdiction over both the object (the power to hear this type of debt contract) and personal jurisdiction (power over the individual).
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Article III of the U.S. Constitution that federal courts have only certain types of subject matter jurisdiction. In response to the court on a federal court has either:
1. federal issue - federal courts have federal question jurisdiction in cases involving the Federal Constitution, federal laws or treaties of the federal government.
or
2. Diversity jurisdiction - diversity jurisdiction requires both a) $ 75,000 or more in question, and b) the parties must be residents of different states. diversity jurisdiction applies to cases where the passenger is accused by various countries in his home state of committing a serious crime, and whether the applicant, lawyers and judges are all friends.
or
3. action brought by or against the United States Government,
or
4. Miscellaneous - certain types of cases such as those concerning patents, bankruptcy, admirality (Maritime Affairs), trademarks and copyrights, etc.
The points 1) and 2) can be tried in state and federal courts or state (or concurrent federal jurisdiction). Section 3) and 4) can be heard by federal courts.
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