28 U.S.C. § 1332 is a federal law that outlines the conditions under which federal courts can hear cases based on diversity of citizenship. This means that if the parties involved in a lawsuit are from different states, and the amount in controversy exceeds $75,000, the case can be brought in federal court instead of state court. The purpose of this statute is to provide a neutral forum for parties from different states, reducing the risk of local bias. It helps ensure that individuals and businesses can seek justice in a fair environment when disputes cross state lines.