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Knee v. Chemical Leaman Tank Lines, Inc.

293 F. Supp. 1094 (1968)

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Knee v. Chemical Leaman Tank Lines, Inc.

United States District Court for the Eastern District of Pennsylvania

293 F. Supp. 1094 (1968)

Facts

Bernice Knee (plaintiff), a Pennsylvania citizen, sued Chemical Leaman Tank Lines, Inc. (Leaman) (defendant) in federal district court for personal injuries she allegedly received as a result of Leaman’s negligence. Knee believed the federal court had diversity jurisdiction over the lawsuit because Leaman was incorporated in Delaware. Initially, Leaman did not dispute that diversity jurisdiction existed. After the statute of limitations ran on Knee’s negligence claim, Leaman revealed that its headquarters was in Pennsylvania, making Pennsylvania its principal place of business. Leaman filed a motion to dismiss the lawsuit, arguing that the federal court could not exercise diversity jurisdiction over the case because the requisite diversity of citizenship did not exist. Knee opposed the motion, arguing that it would be unfair for the court to dismiss the case for lack of jurisdiction because Leaman hid the fact of its Pennsylvania citizenship until after the statute of limitations ran, with the intention of preventing Knee from suing Leaman in state court.

Rule of Law

Issue

Holding and Reasoning (Weiner, J.)

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