Tuesday, September 30, 2008

Fifth Circuit Rules on the Citizenship of a LLC for Purposes of Diversity Jurisdiction:

As noted on Federal Civil Practice Bulletin, the Fifth Circuit in Harvey v. Grey Wolf Drilling Co., --- F.3d ----, 2008 WL 4194538 (5th Cir. Sept. 15, 2008) joined the First, Second, Fourth, Sixth, Seventh, Eighth, Ninth, and Eleventh Circuits in holding that, for the purposes of diversity jurisdiction, the citizenship of an LLC is determined by the citizenship of all of its members.  Click here to read the Fifth Circuit’s opinion and here to read to post on Federal Civil Practice Bulletin.--Counseller/JM   


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So for citizenship for subj matter jurisdiction, a LLC is a citizen of all of its members, and a corporation is a citizen of its PPB and place of incorporation (with some exception). But for venue, both a LLC and corporation reside wherever either is subject to personal jurisdiction? This seems a bit paradoxical to me. Why are the two treated differently for citizenship but not for residence? (After all, for natural people citizenship subsumes residency)

Posted by: adam | Oct 9, 2008 2:26:06 PM

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