Legal Question in Personal Injury in Georgia

Courts and Litigation: Jurisdiction

Mark, a citizen of Georgia, was crossing a street in Atlanta when he was struck by a car driven by David, a citizen of New York, visiting Atlanta. The car was owned by David's employer, a Delaware corporation that has its principal place of business in Atlanta, Georgia. Mark sues both David and the corporation in federal district court in Atlanta alleging damages in the amount of $500,000. Does the court have subject-matter jurisdiction? Why or why not?


Asked on 4/25/04, 3:53 pm

2 Answers from Attorneys

W James Moore MOORE & HAWTHORNE, LLC

Re: Courts and Litigation: Jurisdiction

If I understand your facts correctly, it appears that the federal district court lacks jurisdiction. The Federal Rules require "complete" diversity of citizenship. Because the plaintiff is a Georgia resident and the corporation's principle place of business is Georgia, then there is common citizenship. i.e. Georgia. I assume your true issue is whether the state of incorporation or the principle place of business determines citizenship. Under case law, the principle place of business generally controls.

If you have any further questions, please feel free to contact me further.

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Answered on 4/25/04, 4:11 pm
Kenneth L. Shigley Chambers, Aholt & Rickard, LLP

Re: Courts and Litigation: Jurisdiction

This sounds like a law student seeking help with a takehome exam in civil procedure. I quit dealing in law school hypotheticals 27 years ago, and have enough trouble helping my children with their homework in high school.

However, subject to that caveat, I'll point out that it is specifically provided by 28 U.S.C.A. � 1332 that for purposes of diversity jurisdiction, a corporation shall be deemed a citizen of any state by which it has been incorporated and of the State where it has its principal place of business. The defendant business is a citizen of Georgia for purposes of determining diversity of citizenship, so diversity jurisdiction does not exist.

Moreover, if the business is actually in Atlanta (Fulton or DeKalb county), rather than a conservative suburban county, you would have to be nuts to prefer federal court over state court. Assuming that to be true, if I had this case, I would file it in the State Court of Fulton (or Dekalb, if appropriate) County, include allegations regarding the principal place of business, agent for service in Georgia, lack of complete diversity of citizenship due to the principal place of business in GA, and grounds for venue in the county.

Good luck on your exam!

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Answered on 4/25/04, 4:59 pm


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