Tuesday, November 5, 2019

Federal Court Dismisses Case Against LLC On Jurisdictional Grounds

In the case of State Farm Fire & Casualty Co. v. Electrolux Home Products, Inc., No. 19-935 (E.D. Pa. Sept. 25, 2019 Bartle, J.), the court granted a Motion to Dismiss based upon jurisdictional issues in a federal court case.

The court ruled that the citizenship of a limited liability company (an LLC), is determined by the citizenship of the members of the LLC.

The court otherwise noted that an LLC with no members is considered to be stateless and has no citizenship for purposes of diversity jurisdiction.

Here, where the court found that the parties had no diversity of citizenship, the case was dismissed for lack of federal subject matter jurisdiction.

Anyone wishing to review a copy of this decision may click this LINK.

I send thanks to Attorney James M. Beck of the Philadelphia office of the Reed Smith law firm for bringing this case to my attention.

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