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 Judging by the answers submitted online, this was perhaps the most difficult TTTBE question yet.  Only one person got the answer right, and almost everyone guessed (incorrectly) answer "A" along with Thomas.

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!

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Comments

Anonymous

Aw too bad for Thomas. I could hear him talking himself out of answering D, and I was yelling "No! Don't do it!" into my earbuds. I'm surprised that he didn't hear me.

Anonymous

I thought an LLC was a corporation.! Huh... I learn something new every episode!