Caren v. Collins
689 F. App'x 75
| 2d Cir. | 2017Background
- Plaintiffs Eric C. Caren and Caren Archive Inc. sued Brown Brothers LLP (a limited partnership) and individual defendants in the Northern District of New York, invoking diversity jurisdiction.
- The district court dismissed the complaint for failing to properly allege the parties' citizenship.
- On appeal, the Second Circuit reviewed whether the complaint adequately pleaded citizenship for diversity under 28 U.S.C. § 1332.
- Complaint alleged parties' residences and that the corporate and partnership entities were authorized to do business in particular states, but did not allege domiciles or each partner's citizenship.
- The Second Circuit found those allegations insufficient because citizenship (domicile for individuals; citizenship of all partners for a partnership) was not established.
- The Court dismissed the appeal without prejudice and remanded for the district court to supplement the record with findings as to each party’s citizenship as of the time the action was commenced, per the Jacobson procedure.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether allegations of residence and state licensing suffice to establish diversity jurisdiction | Residence and business licensing statements are adequate to show citizenship | Such statements do not establish legal citizenship for jurisdictional purposes | Dismissed: residence and licensing insufficient; must allege domicile/citizenship |
| How to determine a limited partnership's citizenship for diversity | Partnership's alleged authorization to do business in a state shows citizenship | A limited partnership is the citizenship of each of its partners; all partners' citizenship must be shown | Held: must plead citizenship of every partner; court remanded to make findings on each party's citizenship |
Key Cases Cited
- Franceskin v. Credit Suisse, 214 F.3d 253 (2d Cir. 2000) (residence allegations insufficient to establish citizenship)
- Gilbert v. David, 235 U.S. 561 (U.S. 1915) (citizenship depends on domicile)
- John Birch Society v. National Broadcasting Co., 377 F.2d 194 (2d Cir. 1967) (distinguishing residence from domicile for citizenship)
- Carden v. Arkoma Assocs., 494 U.S. 185 (U.S. 1990) (an artificial entity’s citizenship for diversity is the citizenship of all its members)
- United States v. Jacobson, 15 F.3d 19 (2d Cir. 1994) (procedure for supplementing the record to establish jurisdictional facts)
- Maryland Casualty Co. v. W.R. Grace & Co., 23 F.3d 617 (2d Cir. 1993) (district court findings on parties’ citizenship as of the commencement of suit)