Tewari De-Ox Systems, Inc. v. Mountain States/Rosen, Ltd. Liability Corp.
757 F.3d 481
5th Cir.2014Background
- Tewari De-Ox Systems, Inc. sues Mountain States/Rosen, LLC (MTSR) in federal court invoking diversity jurisdiction.
- District court grants summary judgment for MTSR; this court reverses in part and remands; trial approached.
- Tewari moves to dismiss for lack of subject matter jurisdiction; district court denies, citing complete diversity.
- District court later enters judgment as a matter of law for MTSR.
- On appeal, Tewari challenges only the denial of dismissal for lack of subject matter jurisdiction.
- Diversity hinges on MTSR’s membership; B. Rosen is a New York citizen, Lamb & Wool’s status disputed, lamb & Wool allegedly a Wyoming corporation, and Mountain States Lamb is a Wyoming corporation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether MTSR’s citizenship destroys complete diversity. | Tewari contends Lamb & Wool is unincorporated, affecting MTSR’s diversity. | Lamb & Wool is a Wyoming corporation; Mountain States Lamb is a Wyoming corporation, yielding diversity. | Diversity exists; district court properly denied dismissal. |
| Is Lamb & Wool an incorporated or unincorporated entity for citizenship purposes. | Lamb & Wool’s name and articles suggest an unincorporated association. | Wyoming Secretary of State evidence shows Lamb & Wool is a Wyoming corporation. | Court accepts corporate characterization given Secretary of State evidence and record. |
| If ambiguity exists about Lamb & Wool’s status, does Mountain States Lamb’s corporate ownership resolve citizenship. | Ambiguity could render non-corporate status for diversity counting. | Mountain States Lamb is a Wyoming corporation, securing diligence in citizenship. | Mountain States Lamb’s corporate status controls, maintaining diversity. |
Key Cases Cited
- Getty Oil Corp., a Div. of Texaco, Inc. v. Insur. Co. of N. A., 841 F.2d 1254 (5th Cir. 1988) (diversity requires every plaintiff to be diverse from every defendant)
- Strawbridge v. Curtiss, 7 U.S. (3 Cranch) 267 (1806) (formation of complete diversity required)
- Lincoln Property Co. v. Roche, 546 U.S. 81 (2005) (1332(c)(1) unambiguous citizenship for corporations)
- Harvey v. Grey Wolf Drilling, Co., 542 F.3d 1077 (5th Cir. 2008) (cits corporate citizenship by place of incorporation and principal place of business)
- Teal Energy USA, Inc. v. GT, Inc., 369 F.3d 873 (5th Cir. 2004) (diversity exists determined at time suit is filed)