TTTBE #19: Early Answer for Patrons (Patreon)
Content
This question tested two propositions of civil procedure: (1) that, in order to bring a state law claim in federal court ("diversity jurisdiction"), there must be complete diversity of all parties and no defendant can be from the same state as any plaintiff; and (2) for purposes of unincorporated associations, such as LLCs, citizenship is determined by looking to the citizenship of the members and not the place of organization of the LLC. See, e.g., Lincoln Benefit Life Co. v. AEI Life, LLC, 800 F.3d 99 (2015) .
A lot of people knew point (1), including Thomas -- which, under Mitt Romney's iron law of "corporations are people, my friend!" would lead you to the answer "A" -- but point (2) tripped up almost everyone. Together, these two facts make "D" the correct answer: the corporation is a citizen of New York, but the unincorporated LLC is comprised of citizens of Pennsylvania, Vermont, and Virginia, so this lawsuit can indeed be brought in federal court.
Thomas is now 10-for-19 (52.6%) and his shame cycle continues.
Answers B (that "business entities aren't entitled to diversity jurisdiction") and C (that you can't bring a motion to dismiss until after the completion of discovery) are silly, and if you picked them you should feel bad.
Stay tuned for another new question when Question #20 drops along with Friday's Epsiode 62!