SW Legal Educational Publishing

Diversity of Citizenship May Be Based Purely on State of Incorporation
Description A now non-operational corporation could maintain diversity of citizenship based on its state of incorporation being different from the other party to the litigation, who resided in the state in which the corporation used to have its sole place of doing business.
Topic Court Procedure
Key Words Jurisdiction; Diversity of Citizenship; Corporations
C A S E   S U M M A R Y
Facts "The question of first impression presented by this appeal is whether a [legally existing but non-operational] Georgia corporation, which had conducted business only in Maryland but had ceased those activities three years before commencement of this action, remained a Maryland citizen for purposes of diversity of jurisdiction."
Decision "For purposes of determining a federal court's subject matter jurisdiction based on diversity of citizenship, a corporation is considered to be a citizen of (1) the state of its incorporation and (2) the state 'where it has its principal place of business.'" Since, at the time this lawsuit commenced against two Maryland citizens, the corporation was a citizen of Georgia, diversity of citizenship existed and the suit should proceed on that basis.
Citation Athena Automotive, Inc. v. DiGregorio, - F.3d - (1999 WL 26924, 4th Cir.)

Back to Court Procedure Listings

©1997-2000  South-Western, a division of Cengage Learning, Inc. Cengage Learning is a trademark used herein under license.