What is the test for establishing federal jurisdiction?

MultiRegion, United States of America

The following excerpt is from Dodenhoff v. Cache Creek Foods, LLC, No. 2:15-cv-0107-MCE-KJN PS (E.D. Cal. 2015):

"Federal courts are courts of limited jurisdiction. They possess only that power authorized by Constitution and statute, which is not to be expanded by judicial decree. It is to be presumed that a cause lies outside this limited jurisdiction, and the burden of establishing the contrary rests upon the party asserting jurisdiction." Kokkonen v. Guardian Life Ins. Co., 511 U.S. 375, 377 (1994) (citations omitted).

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