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Popped! Festival, Inc. v. Live Nation Worldwide

February 17, 2010

POPPED! FESTIVAL, INC. PLAINTIFF,
v.
LIVE NATION WORLDWIDE, INC.; GEOFF GORDON; AND JIM SUTCLIFFE DEFENDANTS.



The opinion of the court was delivered by: Jones, J.

MEMORANDUM

I. Introduction

Plaintiff brings the within Motion to Remand on the basis that there is no diversity jurisdiction between the parties in the above-captioned matter and it was improperly removed from the Philadelphia Court of Common Pleas. Defendant Live Nation opposes Plaintiff's Motion to Remand on the bases that: (1) Live Nation is not a citizen of Pennsylvania; (2) Plaintiff fraudulently joined Defendants Geoff Gordon and Jim Sutcliffe in order to defeat diversity jurisdiction; and, (3) Plaintiff's Motion to Remand is untimely.

For the reasons which follow, Plaintiff's Motion will be granted.

II. Discussion

The Federal Rules regarding removal provide in pertinent part, as follows:

Any civil action of which the district courts have original jurisdiction founded on a claim or right arising under the Constitution, treaties or laws of the United States shall be removable without regard to the citizenship or residence of the parties.

Any other such action shall be removable only if none of the parties in interest properly joined and served as defendants is a citizen of the State in which such action is brought.

28 U.S.C.A. §1441(b).

Additionally,

According to 28 U.S.C. § 1332(c)(1), "a corporation shall be deemed to be a citizen of any State by which it has been incorporated and of the State where it has its principal place of business."

*.*.*.*

While a corporation may be a citizen of two states, it can only have one principal place of business.

Freedom Props., L.P. v. Lansdale Warehouse Co., 2007 U.S. Dist. LEXIS 41778, at *8 (E.D. Pa. June 7, 2007)(citation omitted). See also Waste Mgmt. v. Arnoni, 2006 U.S. Dist. LEXIS 81463, at *12 (W.D. Pa. Nov. 7, 2006)("A corporation may have offices and do business in numerous states, perhaps even all of them, but it is not a citizen of every state in which it does business; to the contrary, a corporation has only one principal place of business for purposes of establishing diversity jurisdiction.").

In that same vein,

Diversity jurisdiction is not available when any plaintiff is a citizen of the same state as any defendant. "[A] corporation shall be deemed to be a citizen of any State by which it has been incorporated and of the State where it has its principal place of business...." A corporation can only have one principal place of business. Moreover, a corporation may conduct business in a state of which it is not a citizen. Furthermore, serving a corporation in a particular state does not make that corporation a citizen of the state for purposes of diversity jurisdiction. Ultimately, "[w]hether diversity jurisdiction exists is determined by examining the citizenship of the parties at the time the complaint was filed."

Lasch v. Idearc Media Corp, 2007 U.S. Dist. LEXIS 90479, at **5-7 (E.D. Pa. Dec. 7, 2007)(citations omitted).

To determine the principal place of business, courts in this District apply a "center of corporate activities," test which was summarized by the ...


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