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Thursday, May 17, 2018

Citizenship for Diversity Jurisdiction

Diversity jurisdiction requires that no plaintiff is a citizen of the same state as any defendant.  And so in making this determination it's first required to determine the citizenship of various parties to the lawsuit.  Things can get a bit complicated when the parties are not individuals, but remembering the following should make the determination of diversity far easier:

Individuals:  Determining the citizenship of an individual depends upon the permanent home to which that individual intends to return.  The citizenship of a child is that of the child's parents.

Corporations:  A corporation is deemed a citizen of every U.S. state and foreign country in which it is incorporated and the one U.S. state or foreign country in which it has its principal place of business.  The principal place of business is the U.S. state or foreign country from which the high-level officers direct or control the activities (often the headquarters).

Unincorporated Associations and Limited Liability Companies:  These businesses are considered to be a citizen of each state in which any member is a citizen.

Legal Representatives:  The legal representative of the estate of a decedent, an infant, or an incompetent, has the same citizenship as the decedent, infant, or incompetent.

Class Actions: Citizenship in class actions lawsuits is determined on the basis of the citizenship of the named members of the class.

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