Tuesday, July 4, 2017
MBE Fast Fact: Diversity Jurisdiction & Limited Partnerships
When determining the citizenship of a limited partnership for purposes of diversity, be sure to assess the citizenship of all partners, general and limited. For example, assume the plaintiff is suing a limited partnership in federal court on a state-law claim. Plaintiff is from state A, 4 general partners are from state B, and 3 limited partners are from state A. Because there are limited partners who are citizens of the same state as the plaintiff, diversity is destroyed and there will be no subject matter jurisdiction over this claim in federal court. Importantly, it's not only the citizenship of the general partners that are assessed when making this diversity determination.