Corporate Dual Citizenship Rule
This trap appears as a wrong-answer choice in 1 active question. Spotting how it is built is the repair: read each example's “why it's attractive” before the “why it's wrong.”
Subject distribution
- Civil Procedure1
Example wrong choices
18196_riverstone_citizenship · CIVIL_PROCEDURE · Choice BYes, because RiverStone is incorporated in Nevada.
Why it's attractive
The 'incorporation is the citizenship' claim is a half-truth: it correctly notes the incorporation state but skips the principal place of business. The Gold Key handles the dual-citizenship carve-out.
Why it's wrong
The 'incorporation is the citizenship' claim is a half-truth: it correctly notes the incorporation state but skips the principal place of business. The Gold Key handles the dual-citizenship carve-out.
18196_riverstone_citizenship · CIVIL_PROCEDURE · Choice CNo, but only because the claim is based on state law.
Why it's attractive
A state-law claim is exactly the kind of claim that § 1332 diversity jurisdiction exists to hear, provided the diversity and amount requirements are met. The state-law nature of the claim is not a defect.
Why it's wrong
A state-law claim is exactly the kind of claim that § 1332 diversity jurisdiction exists to hear, provided the diversity and amount requirements are met. The state-law nature of the claim is not a defect.
18196_riverstone_citizenship · CIVIL_PROCEDURE · Choice DYes, because a corporation can have only one citizenship.
Why it's attractive
A corporation has DUAL citizenship under § 1332(c)(1): both its state of incorporation and the state of its principal place of business.
Why it's wrong
A corporation has DUAL citizenship under § 1332(c)(1): both its state of incorporation and the state of its principal place of business.
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