Recent Developments in Diversity Jurisdiction for LLCs and Other Unincorporated Forms

Recent Developments in Diversity Jurisdiction for LLCs
and Other Unincorporated Forms

      The Journal of Passthrough Entities has just released my article Recent Developments in Diversity Jurisdiction for LLCs and Other Unincorporated Forms. This article addresses a trio of developments.

      First, it reviews the decision of the Third Circuit Court of Appeals rendered in Lincoln Benefit Life v. AEI Life, LLC, it providing important guidance as to how diversity may be plead on “information and belief” and facial challenges thereto.

      Second, it reviews a number of decisions addressing how to classify a non-US entity as being either incorporated or unincorporated, that classification in turn determining which test will be utilized in assessing citizenship for purposes of diversity.

      Third and last, there is considered a proposal from the American Bar Association that Congress amend the diversity jurisdiction statute to apply the current rule for corporations to, as well, unincorporated entities.

      HERE IS A LINK to this article.