Glenda Johnson v. SmithKline Beecham Corp
2013 U.S. App. LEXIS 11501
| 3rd Cir. | 2013Background
- Johnson (Louisiana) and Lucier (Pennsylvania) allege thalidomide-related birth defects caused by Defendants' actions in the 1960s and file in Pennsylvania state court; Defendants remove alleging federal diversity jurisdiction; Plaintiffs contend four Defendants are Pennsylvania citizens, creating lack of complete diversity; district court denies remand after finding diversity; appeal seeks reversal on GSK Holdings, GSK LLC, SmithKline Beecham, and Avantor citizenship; prior rulings show mixed determinations on GSK Defendants’ citizenship; court holds GSK Holdings and GSK LLC are Delaware citizens, SmithKline Beecham is a nominal party, and Avantor was a New Jersey citizen at removal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether GSK Holdings and GSK LLC are Pennsylvania citizens defeating complete diversity | GSK Holdings' nerve center is Philadelphia; GSK LLC inherits that citizenship | GSK Holdings' nerve center is in Delaware; GSK LLC citizenship follows its member | GSK Holdings and GSK LLC are Delaware citizens; diversity exists |
| Whether SmithKline Beecham retains Pennsylvania citizenship for purposes of diversity | Dissolved Pennsylvania entity retains citizenship | SmithKline Beecham is nominal; has no real interest; citizenship not counted | SmithKline Beecham is nominal; not counted for diversity |
| Whether Avantor's citizenship at removal was Pennsylvania or New Jersey | Avantor operated from Pennsylvania before removal; creates PA citizenship | Avantor's nerve center remained in New Jersey; moved after removal | Avantor was a New Jersey citizen at the time of removal |
Key Cases Cited
- Carden v. Arkoma Assocs., 494 U.S. 185 (1990) (unincorporated entities' citizenship depends on members)
- Hertz Corp. v. Friend, 559 U.S. 77 (2010) (nerve center test for corporate citizenship)
- Zambelli Fireworks Mfg. Co. v. Wood, 592 F.3d 412 (2010) (LLCs' citizenship determined by members' citizenship)
- Abels v. State Farm Fire & Cas. Co., 770 F.2d 26 (1985) (diversity burden on removing party; complete diversity required)
- Stentor Elec. Mfg. Co. v. Klaxon Co., 115 F.2d 268 (1940) (dissolution life for litigation purposes; citizenship considerations)
- Quaker State Dyeing & Finishing Co. v. ITT Terryphone Corp., 461 F.2d 1140 (1972) (separate corporate identities; focus on parent vs subsidiary)
- Mennen Co. v. Atlantic Mutual Insurance Co., 147 F.3d 287 (1998) (holding tests pre-Hertz; not controlling here)