Carden v. Arkoma Associates

108 L. Ed. 2d 157 · Supreme Court of the United States · 1990

Facts

Arkoma Associates, an Arizona limited partnership, sued Louisiana citizens in federal court, claiming diversity jurisdiction. Defendants moved to dismiss, arguing one of Arkoma's limited partners was also a Louisiana citizen, which would destroy complete diversity. The Fifth Circuit affirmed the District Court's finding of diversity by considering only the general partners' citizenship.

Procedural history

Arkoma Associates filed a contract dispute suit in the United States District Court for the Eastern District of Louisiana. The District Court denied the defendants' motion to dismiss based on lack of diversity, but certified the question for interlocutory appeal, which the Fifth Circuit declined. Following a bench trial, the District Court awarded Arkoma a money judgment and dismissed the counterclaims. The defendants appealed, and the Fifth Circuit affirmed, finding complete diversity by considering only the general partners' citizenship. The Supreme Court granted certiorari.

Issue

Does the citizenship of limited partners need to be considered when determining diversity of citizenship for a limited partnership in federal court, or can the partnership be considered a citizen in its own right or based only on its general partners' citizenship?

Holding

The Supreme Court reversed the Fifth Circuit, holding that the citizenship of all partners, both general and limited, must be considered to determine diversity jurisdiction for a limited partnership.

Rule

For purposes of federal diversity jurisdiction, an unincorporated association, such as a limited partnership, is not considered a "citizen" in its own right, and its citizenship is determined by the citizenship of all its members, both general and limited. Any changes to this established rule are a matter for legislative action by Congress, not judicial reinterpretation.

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Case brief last reviewed 2026-03-03. Prepared by CaseReader from the published opinion.