Limited Partners and Diversity Jurisdiction: Stouffer Corp. v. Breckenridge
Neuens, Chad M.
INTRODUCTION|Diversity jurisdiction was conferred upon federal district courts in order to protect out of state litigants against prejudice from state courts. This was accomplished by allowing suits between citizens of different states access to federal courts.|There has, however, been much disagreement over what constitutes a "citizen" for diversity purposes. A corporation, for example, has been deemed a "citizen" of its state of incorporation as well as the state where it has its principal place of business. On the other hand, unincorporated associations do not receive the same fictional citizenship that is applied to corporations. When an unincorporated association is a party to a lawsuit, the citizenship of each of the individual members must be considered in determining diversity. This treatment of unincorporated associations is the basis for the decision in Stouffer Corporation v. Breckenridge. In Stouffer, the United States Court of Appeals for the Eighth Circuit held that prior United States Supreme Court and courts of appeals decisions, as well as policy reasons, mandated the inclusion of each limited partner's citizenship in a determination of whether diversity exists...
22 Creighton L. Rev. 1055 (1988-1989)
Creighton University School of Law