Tuesday, September 23, 2008

Fifth Circuit Joins other Circuits in Holding that Citizenship of LLC for Purposes of Diversity Jurisdiction Is Based on Citizenship of all Members

Per Harvey v. Grey Wolf Drilling Co., --- F.3d ----, 2008 WL 4194538 (5th Cir. Sept. 15, 2008):

Neither the Supreme Court nor this circuit have previously addressed the question of how to determine the citizenship of a LLC for purposes of diversity jurisdiction. See Unity Commc'ns, Inc. v. Unity Commc'ns of Colo. LLC, 105 Fed.Appx. 546, 547 n. 1 (5th Cir.2004) (“We express no opinion about whether or not the district court's holding regarding the citizenship of limited liability companies is the proper interpretation of the law.”). All federal appellate courts that have addressed the issue have reached the same conclusion: like limited partnerships and other unincorporated associations or entities, the citizenship of a LLC is determined by the citizenship of all of its members. See Pramco, LLC ex rel. CFSC Consortium, LLC v. San Juan Bay Marina, Inc., 435 F.3d 51 (1st Cir.2006); Handelsman v. Bedford Village Assocs. Ltd. P'ship, 213 F.3d 48 (2nd Cir.2000); Gen. Tech. Applications, Inc. v. Exro Ltda, 388 F.3d 114 (4th Cir.2004); Homfeld II, L.L.C. v. Comair Holdings, Inc., 53 Fed.Appx. 731 (6th Cir.2002); Wise v. Wachovia Securities, LLC, 450 F.3d 265 (7th Cir.2006); GMAC Commercial Credit LLC v. Dillard Dept. Stores, Inc., 357 F.3d 827 (8th Cir.2004); Johnson v. Columbia Props. Anchorage, LP, 437 F.3d 894 (9th Cir.2006); Rolling Greens MHP, L.P. v. Comcast SCH Holdings L.L.C., 374 F.3d 1020 (11th Cir.2004). We now join the other circuits in this holding.


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