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Diversity Jurisdiction Principal Place of Business

Husch Blackwell LLP

Establishing General Personal Jurisdiction for an LLC

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To exercise valid jurisdiction over any claim, a federal court must have both personal jurisdiction and subject matter jurisdiction. Subject matter jurisdiction can be based on diversity of citizenship, the presence of a...more

Lewitt Hackman

Franchisee 101: Subject Matter Mania…

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A federal court in Florida dismissed an action by franchisees against their franchisor for lack of subject-matter jurisdiction. The franchisees asserted claims under California and Florida laws alleging the franchisor, OR...more

Morgan Lewis

California Appellate Court Holds Web Access Claims Against Web-Only Businesses Fail Under ADA and Unruh Act

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The California Court of Appeal, Second Appellate District, issued a decision on August 1 holding that websites without any connection to physical place of business are not “places of public accommodation” under Title III of...more

Lowenstein Sandler LLP

Federal Venues May Not Be Available in Lawsuits That Members File Against Limited Liability Companies

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The common train of thought when litigating as an out-of-state defendant is that it is best to be venued in federal court so as to eliminate any advantage an in-state plaintiff might have with a local jury. Typically, foreign...more

Jackson Walker

When Filing Suit in Federal Court, Don’t Forget the Key to the Courtroom Door

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Formalism matters in federal court. One cannot obtain access to the courtroom without presenting the jurisdictional key to the courtroom door. A fundamental principle of subject matter jurisdiction is that parties asserting...more

Farrell Fritz, P.C.

For Want of a Penny: Business Divorce Case Almost Makes it Into Federal Court

Farrell Fritz, P.C. on

“I will not seek or accept an award in excess of $74,999.99, inclusive of punitive damages, attorney’s fees and the fair value of any injunctive relief.”...more

Allen Matkins

What Does California's LLC Alter Ego Statute Have To Do With A Delaware Corporation?

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Mr. Clapper is a California resident and the President, Chairman, and controlling shareholder of ScanX, a Delaware corporation with its principal place of business in California. Mr. Carlson and Carlson Produce, LLC, an...more

Husch Blackwell LLP

Personal Jurisdiction And LLCs – Does Citizenship Matter?

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When deciding whether to remove a case when an LLC is a party it is necessary to look at the citizenship of the LLC’s members to determine whether there is diversity for subject matter jurisdiction. However, citizenship of...more

Allen Matkins

Court Rules California Unincorporated Association Is A South Dakota Citizen

Allen Matkins on

Diversity jurisdiction in the U.S. District courts requires complete diversity of citizenship between the parties. 28 U.S.C. § 1332. A corporation can be a citizen of its state of incorporation, as well as the state where...more

Allen Matkins

Where Is A Holding Company's Principal Place Of Business?

Allen Matkins on

Businesses often prefer to have their cases tried in federal court, but the U.S. District Courts are courts of limited jurisdiction. When there is no federal question at issue, the Court's jurisdiction may depend on whether...more

Bradley Arant Boult Cummings LLP

Growing Consensus in the Courts of Appeals against Alternative-Citizenship Theory of Diversity under CAFA

If a putative class of plaintiffs, all citizens of State A, sues a corporate defendant, which the law considers to be a citizen of State A and State B, in state court, may the defendant remove the case to federal court under...more

Bradley Arant Boult Cummings LLP

A Corporation May Not Pick And Choose Its Citizenship To Create Diversity Under CAFA

The Sixth Circuit became the third court of appeals to reject the “alternative citizenship” theory of diversity under the Class Action Fairness Act (CAFA). In Roberts v. Mars Petcare US, Inc., a putative class of Tennessee...more

Carlton Fields

Eleventh Circuit Finds Dual Citizenship Defeats CAFA Diversity

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The Eleventh Circuit recently denied a petition to appeal an order remanding a putative class action to state court, finding the defendant corporations’ dual citizenship defeated minimal diversity under the Class Action...more

Butler Weihmuller Katz Craig LLP

Federal Diversity Jurisdiction: Proving Citizenship of Limited Liability Companies

Jurisdiction gives a federal court the power to hear a case. Jurisdiction matters at the outset of a lawsuit. It matters during discovery. It even matters after summary judgment. Jurisdiction matters because federal courts...more

A&O Shearman

Second Circuit Holds a National Bank’s Citizenship Is Determined Exclusively by Location of Main Office, Not Principal Place of...

A&O Shearman on

For purposes of assessing the existence of federal subject matter jurisdiction based on diversity of citizenship, national banking associations—i.e., corporate entities chartered not by any State, but by the Office of the...more

Womble Bond Dickinson

The Case for a Unified Approach to Corporate and LLC Citizenship

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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...more

Allen Matkins

What Does Americold Realty Trust Have To Do With Rule 147?

Allen Matkins on

Under Article III, Section 2 of the U.S. Constitution, the judicial power of the federal courts may extend to, among other things, controversies between citizens of different states. When a party is a trust, in what state is...more

Blank Rome LLP

Third Circuit Challenges Supreme Court to Reconsider Whether an LLC’s Citizenship Should Be Based on Its Members

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Action Item: An LLC’s state of organization and principal place of business are legally irrelevant for purposes of determining diversity jurisdiction in the Third Circuit. Despite the practical difficulties this law imposes...more

Smith Anderson

Federal Court Report - Fourth Circuit Applies “Nerve Center” Test for Diversity Jurisdiction

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On January 7, 2014, the Fourth Circuit applied the “nerve center” test for determining a corporation’s principal place of business for diversity jurisdiction. The Supreme Court recently adopted the nerve center test in Hertz...more

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