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Second Circuit Review: Resolving an Open Question On Diversity Jurisdiction
August 30, 2024
Litigation of counsel Martin Flumenbaum and firm Chairman Brad Karp’s latest Second Circuit Review column, “Resolving an Open Question On Diversity Jurisdiction,” appeared in the August 30 issue of the New York Law Journal. The authors discuss the Second Circuit’s decision in Winward Bora v. Browne regarding whether the state domiciles of an LLC’s permanent resident members are relevant in determining whether a U.S. federal court has diversity jurisdiction—subject-matter jurisdiction by federal courts to hear certain lawsuits that do not involve a federal question, if the plaintiffs and defendants are not citizens of the same state. The Second Circuit held that the permanent resident members’ state domiciles are relevant, and therefore there is no diversity jurisdiction in a suit between U.S. citizens and an unincorporated association with permanent resident members—such as the LLC involved in this lawsuit—if such jurisdiction would not exist in a suit between the same U.S. citizens and those permanent resident members as individuals. Litigation associate Kristina Bunting assisted in the preparation of this column.
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