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Litigation: 8 removal reminders about limited liability companies

A refresher about the citizenship of an LLC for purposes of removing a case based on diversity jurisdiction

It is settled law in virtually every jurisdiction that limited liability companies (LLCs) are treated like partnerships, not corporations, for purposes of diversity of jurisdiction. By now, most litigators have had to analyze the citizenship of an LLC in the context of removal. But some have not, and even those who have could probably benefit from a reminder about some of the nuances. This article provides eight reminders—some obvious, some less obvious—about the citizenship of an LLC for purposes of removing a case based on diversity jurisdiction.

1. An LLC is a citizen of all states where its members are citizens. Harvey v. Grey Wolf Drilling Co. The state in which the LLC was formed or registered is irrelevant for purposes of determining the citizenship of the LLC.

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Cable Frost

Cable M. Frost is a shareholder at Baker, Donelson, Bearman, Caldwell & Berkowitz, PC (Jackson, MS). He practices primarily in the areas of products liability,...

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Everett White

Everett White is an associate at Baker, Donelson, Bearman, Caldwell & Berkowitz, PC (Jackson, MS). He concentrates his practice in civil litigation, with an emphasis...

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