Federal Jurisdiction & Procedure.docx

Ii alien corporations same rules apply look at

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ii. Alien corporations – same rules apply; look at country of incorporation and PPB. iii. State law governs meaning of “corporation.” (LLC ≠ corporation). c. Effect of multiple state citizenships – in §1332 suit, not diverse from any opposing party with any of the same “state citizenships.” i. Foreign state citizenship – corporation cannot be party to §1332 suit that does not qualify for alienage jx. 1. NO §1332: π corp. (Mexico INC, Arizona PPB) v. ∆ corp. (Illinois INC, Canada PPB). 2. YES §1332: π corp. (Japan INC, Nevada PPB) v. ∆ corp. (Del INC, Michigan PPB). 3. State citizenship for non-corporate entities – all entities NOT corporations have citizenship of states of all members . a. Only corporations are assigned state citizenships by Congress. b. Examples – citizenship may be conferred by members who are persons , corporations , or non-corporate entities . i. Non-corporate entities with only one member: sole proprietorship; d/b/a; owner who failed to incorporate. ii. Non-corporate entities with multiple members: p/s (GP); LP; LLP; LLC; unincorporated association. c. Sui generis entities: i. Business trust – all its trustees (none of its s/hs). ii. National bank – where head office is “located” (branch locations irrelevant). iii. Syndicate (Lloyd’s of London) – all its syndicate members (investors/“names”). 4. Statutory attributions of state citizenship a. Direct action suit – under §1332, insurer-∆ sued alone is deemed to have own citizenship + citizenship of insured .
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i. LA permits DA suit against insurance company without the insured; special rule in §1332 prevents π from using DA statute to create complete diversity by omitting non-diverse insured-∆. ii. Rule does not apply if: (1) insured is joined as ∆, or (2) π is suing own insurer. iii. If insurer is a corporation incorporated abroad or PPB abroad “foreign state citizenship.” b. Representatives – generally, when party has a legal right to sue to represent interest of another – use rep’s citizenship. i. Exceptions – under §1332, ignore rep’s citizenship for (1) estate of decedent or (2) infant or incompetent . 1. Representative’s citizenship is deemed to be only that of the decedent or infant/incompetent. ii. Wrongful death or Survival actions 1. WD – when relatives sue in own capacities as πs citizenship of relatives themselves for diversity. 2. Survival– when relatives sue in own capacities as πs citizenship of relatives themselves for diversity a) Right to assert decedent’s survival rights pass to π succession representative only if no other relatives decedent’s citizenship governs for diversity. 5. “Minimal” diversity requirements – Congress may modify Strawbridge ’s interpretation of §1332 to satisfy “complete diversity.” a. Exceptions to Strawbridge – “minimal” diversity: i. Interpleader suit under §1335 – creates SMJ in federal suit where §1332 requirements not met; ∆-stakeholder may invoke federal SMJ under §1335 as long as 2 claimants are citizens of different states.
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  • Spring '14
  • CatherineLacroix
  • Common Law, Supreme Court of the United States, federal court, SMJ

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