Melissa Hart and John Hart v. Terminex International, a Delaware Corporation, Doing Business as Balantyne Pest Control
336 F.3d 541 · Court of Appeals for the Seventh Circuit · 2003
Facts
Melissa and John Hart, Illinois citizens, sued Dow Chemical, DowElanco, and Terminix International Company L.P. (a partnership) for injuries. The case was removed to federal court based on diversity, but it was later discovered that Terminix had Illinois citizens as partners, destroying complete diversity. This jurisdictional issue was not resolved until eight years into the federal litigation.
Issue
Did the federal court possess subject matter jurisdiction based on diversity of citizenship when a defendant partnership included partners who shared citizenship with the plaintiffs, thereby lacking complete diversity?
Holding
No, the federal court lacked subject matter jurisdiction because there was no complete diversity of citizenship. The district court's judgment was vacated, and the case was remanded with instructions to dismiss for want of jurisdiction.
Rule
For diversity jurisdiction, the citizenship of an unincorporated association or partnership is determined by the citizenship of all its members or partners, traced through all layers of ownership. Complete diversity requires that no plaintiff shares citizenship with any defendant.
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