The Case for a Unified Approach to Corporate and LLC Citizenship

Womble Bond Dickinson
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Imagine opening your email one morning to find a copy of a complaint and summons just received by your out-of-state corporate client. The caption shows a familiar North Carolina company as the lone plaintiff, and a cursory review of the allegations reveals several indicia of a case that you would prefer to defend in federal court: a demand for substantial damages, a remote venue with limited court calendars, a plaintiff who is a major employer in the forum county, and potentially complicated legal issues that would benefit from full briefing. No problem, you think, because the matter will probably be removable, given the amount at issue and your client’s out-of-state incorporation and headquarters. When you scrutinize the caption again and note the three letters “LLC” appended to the plaintiff’s name, however, what first seemed clear becomes opaque.

Originally published in The Middle Ground - May 2016.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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