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Carden v. Arkoma Associates

United States Supreme Court
494 U.S. 185 (1990)


Facts

Arkoma Associates (Arkoma) (plaintiff) is an Arizona limited partnership. Arkoma brought a breach of contract dispute in the United States District Court for the Eastern District of Louisiana against C. Tom Carden and Leonard L. Limes (defendants), citizens of Louisiana. Arkoma brought its suit based on diversity jurisdiction. The defendants moved to dismiss, arguing that diversity did not exist, because one of Arkoma’s limited partners was a citizen of Louisiana. The district court denied the motion and subsequently issued a judgment in favor of Arkoma. The defendants appealed, renewing their jurisdictional challenge. The United States Court of Appeals for the Fifth Circuit affirmed, finding that the citizenship of a limited partnership should be determined by the citizenship of the general partners, not by the citizenship of the limited partners.

Rule of Law

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Issue

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Holding and Reasoning (Scalia, J.)

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Dissent (O’Connor, J.)

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