Document: 490 U.S. 826 109 S.Ct. 2218 104 L.Ed.2d 893 NEWMAN-GREEN, INC., Petitionerv.Alejandro ALFONZO-LARRAIN, et al. No. 88-774. Argued April 24, 1989. Decided June 12, Rehearing Denied Aug. 11, See 492 932, 110 12. Syllabus Title 28 U.S.C. § 1332 confers diversity jurisdiction in the district courts when a citizen of one State sues both aliens and citizens different from plaintiff's, 1332(a)(3), only, 1332(a)(2). Petitioner, an Illinois corporation, invoking under brought state-law contract action District Court against Venezuelan corporation and, as joint several guarantors royalty payments due agreement, four Bettison, United States domiciled Venezuela. After years litigation, Court, inter ia, granted partial summary judgment for guarantors. A Appeals panel found that Bettison's status not within destroyed 1332(a)(3) jurisdiction, but petitioner's motion to dismiss him suit, thereby producing complete The court then decided merits. en banc reversed, concluding neither 1653—which provides "[d]efective allegations may be amended . trial or appellate courts"—nor Federal Rule Civil Procedure 21—which add drop parties at any stage on such terms are just—empowers dispensable party who spoils statutory jurisdiction. However, recognizing 21 permits nondiverse parties, remanded case determination whether it would prudent Bettison litigation. Held: appeals has authority grant need remand dismissal court's discretion. Pp. 830-838. (a) Since 1653 speaks amending jurisdictional allegations, apply if petitioner had made incorrect statement about actually existed, does where, here, there defects facts themselves. This interpretation is consistent with 1653's legislative history language its predecessor statute, well view every considered scope. 830-832. (b) Virtually modern faced this issue concluded by virtue 21. Furthermore, exercised similar 21, see Mullaney v. Anderson, 342 415, 72 428, 96 L.Ed. 458, prior enactment Rules. Carneal Banks, 10 Wheat. 181, 6 297. Other early relied their 32 Judiciary Act 1789 courts' own inherent powers. declines disturb deeply rooted understanding power, particularly requiring suit after litigation impose unnecessary wasteful burdens judges, other litigants awaiting judicial attention. Here, practicalities weigh heavily favor decision since, were dismissed, compelled refile diverse proceed preordained merely sake hypertechnical purity. Although should exercise sparingly, carefully considering will prejudice remanding appropriate, erect per se rule must first make case. none harmed dismissal, since his presence did provide tactical advantage; he was indispensable suit; possible personally eliminated terminated prejudice. 832-838. 854 F.2d 916 (CA 7 1988), reversed remanded. MARSHALL, J., delivered opinion which REHNQUIST, C.J., BRENNAN, WHITE, BLACKMUN, STEVENS, O'CONNOR, JJ., joined. KENNEDY, filed dissenting opinion, SCALIA, joined, post, p. 839. Phil Caldwell Neal, Chicago, Ill., petitioner. Frank K. Heap, respondents. Justice MARSHALL deliver d Court. 1 We decide today whose 2 * Petitioner Newman-Green, Inc., citizens, William L. Caracas, Newman-Green's complaint alleged breached licensing individual defendants, owed money Newman-Green. Several discovery pretrial motions followed. ultimately 590 F.Supp. 1083 (ND Ill.1984). Only Newman-Green appealed. 3 At oral argument before Seventh Circuit Appeals, Judge Easterbrook inquired basis been previously raised either counsel Judge. In complaint, invoked (or States) plaintiff's. order meaning natural person State. Robertson Cease, 97 646, 648-649, 24 1057 (1878); Brown Keene, 8 Pet. 112, 115, 885 (1834). problem although citizen, no domicile He therefore "stateless" purposes 1332(a)(3). Subsection 1332(a)(2), also could satisfied because citizen. 4 When plaintiff more than defendant action, meet requirements statute each face dismissal. Strawbridge Curtiss, Cranch 267, 435 (1806).1 citizenship Instead dismissing case, however, motion, invited, amend party, 832 417 (1987). panel, Easterbrook, Rules sources motion. noted that, jointly severally liable, remaining F.2d, 420, citing Fed.Rule Civ.Proc. 19(b). proceeded merits ruling large part allow quantify damages resolve certain minor issues.2 5 guarantors' rehearing ban decision. (1988). Writing majority, Posner nor empowers not, lawsuit. Recognizing determine joined two members original wrote elaborated opinion. Id., 927. Unlike Circuit, Courts Second, Third, Ninth, Columbia Circuits have held power spoilers like Bettison.3 petition certiorari conflict, 488 1003, 781, 102 773 (1989), now reverse. II existence federal ordinarily depends they exist filed. See, e.g., Smith Sperling, 354 91, 93, n. 1, 77 1112, 1113, 1205 (1957). Like most general principles, susceptible exceptions, potentially applicable here reflected Procedure. discuss potential exception turn. A. 1653, enacted revision Judicial Code 1948, amended, upon terms, courts." blush, provision appears cover situation where preserve But "allegations jurisdiction," suggests addresses only statements exists, Under reading we believe correct, were, fact, was, so allege. It instant situation, exist. 9 1915, expressly limited amendments cases "in fact existed time removed, though defectively alleged." 274c, Mar. 3, 38 Stat. 956, 399 (1946 ed.). There nothing 1948 indicate changing wording Congress intended abandon limitation just quoted. On contrary, guide available—the Revision Note 1653—explains changed solely expand cure defective all cases. Historical Notes 1653. "[c]hanges phraseology." Ibid. Surely change empower produce e isted much phraseology.4 scope allows remedy inadequate facts.5 decline reject longstanding statute. B turn next source discussed Procedure, "[p]arties dropped added initiative just." As majority dissent recognized below, settled invests time, even rendered.6 strictly courts, policies informing equally appeals. narrow question us, therefore, do what can itself, court, leaving discretion party? 11 Almost 21.7 reluctant well-settled construction, evidence abused matter). ourselves 458 (1952), questioned plaintiff-union's standing bring reached Relying explicitly avoided deciding granting union's members. extensively 21's applicability setting, note "affected course litigation" occurred some earlier point, "embarrass defendant." 417, S.Ct., 430. further remarked plaintiffs start over "would entail needless waste runs counter effective administration." Finally, expressed confidence late "will rarely come into play." Ibid; cf. Rogers Paul, 382 198, 198-199, 86 358, 359-360, 15 265 (1965) (per curiam ).8 12 represented long predates Anonymous, F.Cas. 996, 997 (No. 444) (CC Mass.1812), Story, sitting Justice, "[t]here then, nature forbids amendments." Story derived "the common law," permitted " 'the superior [to] amendments, below may.' Ibid., quoting King Ponsonby, Wils. 303, 95 Eng.Rep. 631 (K.B.1751); F.Cas., 997, Pease Morgan, Johns. 468, 469 (N.Y.1811). looked 1789, provided "may permit defect process pleadings, conditions said respectively shall rules prescribe." formerly codified 777 ed.).9 cautioned, amendment used way "no unfair advantage taken oppression practised other." 998. 13 While Story's dealt generally Chief Marshall's 297 (1825), hand—the parties. involved Banks groups heirs Harvie Carneal. plaintiff. noting problem, stated: "The bill Harvie's heirs, without manner affecting Carneal's heirs. That improperly defendants bill, cannot affect between those properly it." 188. predicated ruling, part, tha "indispensable Court." state arose dismissed review Court's reveals lower never parties.10 Thus, itself while acting capacity. 14 By contrast, Horn Lockhart, 17 Wall. 570, 657 (1873), clearly approving strikingly reminiscent employed Carneal: "[T]he always is, be, objection reason interests severable decree rights made, retained them." Wall., 579. similarity surprising; considerations implicit exercises same power. Moreover, once exceedingly difficult argue presents risk retroactively conferred. these 19th-century procedural era our own, apparent weight favored possessed parties.11 courts. Today rely waiting Mullaney, U.S., 429. Appellate-level correct intellectually satisfying approach spoiler but, eloquently noted, "law instrument governance rather hymn intellectual beauty, consideration given practicalities." 925. 16 party. If entire simply Venezuelans submit materials already hand. judgment. id., 939-940 (Easterbrook, dissenting).12 jump through hoops hold emphasize sparingly. consider produced another. factual disputes arise, might appropriate better position determination. 18 evident First, advantage. Discovery directed available 30(a); 1783. (including Bettison) argued suit. 19(b); 938 dissenting). faces himself, participated start, possibility court. solved terminating prejudice, thus burden pursuing obtain contribution indemnity. 420. panel's disposition entirely appropriate. Nothing resources engendered forcing begin anew. III 19 For reasons stated, proceedings 20 ordered. whom SCALIA joins, dissenting. Our colleagues disagree court[,]" diversity. holds give actual extends allegation. ante, 830. I agree 22 end thought necessary affirmative ministerial awesome curing ought presumed, absent explicit. balance effect demonstrates clear rebut strong negative implication nevertheless us precise location. 23 initial matter, disturbing address substantive grave, brooding affords confer critical states "well settled" 832. created Finley States, 545, 547-548, 2003, 2005-2006, 593 acquire adverse possession. Indeed, doubts thing, important governs misjoinder nonjoinder. claim improper defeats remembered, moreover, 82 construed extend limit questionable relying 82's admonition. if, holds, section above clouds ability vague charming utility nunc pro tunc device obscure outright fiction. Even assumption, ondiverse sole purpose creating before, notwithstanding odd contrary 430, (1952) ("Rule play [i.e., Supreme Court] litigation") (emphasis added), Automobile Workers Scofield, 205, 217, 10, 373, 381, 272 (1965). 25 establish Both most, powers 916, 921 (1988) (Posner, J.); 931 J.), concedes much, 835-836. Nor explicit way, inference, 26 majority's reliance proceeds premise questionable. assumes single Posner, observed "treated suits, requirement diversity, dismissable dismissed." 921. perhaps, understated plaintiff, "agreed transfer right 30,000 acres land purchased John Harvie," exchange promised convey "a tract 2,000 Green River." Wheat., 182. claimed "Carneal guilty fraud pretending good title land." 182-183. Because conveyance Carneal, relief, prayed "that [between Banks] rescinded" ., legal remains, decreed [Banks]." 183. 187-188. treated claims (the parties) separate affected Banks' "If validity [the lack diversity], far respects unquestionable, ." 188 added). "[t]he heirs." plausible merits, want went met c mplete Seen light, evidences usual authority. 27 basic place heavy Horn. concedes, "were own," 836. governed various provisions 28. my view, survives plain point (§ 1653). Whatever implied present flaws. am persuaded, either, practical warrant holding assume quite allowed. contend, respondents how take reenter judgment? think purpose, resume permitted, expeditious. overriding managed presentation trial, judgment, defendant. 29 reasons, respect, based Article Constitution. Farm Fire & Casualty Co. Tashire, 386 523, 530-531, 87 1199, 1203-1204, 270 (1967). bearing presently us. nonetheless decision, combined incentive Long Columbia, 261 U.S.App.D.C. 8-9, 820 409, 416-417 (1987); Continental Airlines, Inc. Goodyear Tire Rubber Co., 819 1519, 1523, (CA9 1987); Caspary Louisiana Land Exploration 725 189, 191-192 (CA2 1984) ); Underwood Maloney, 256 334, 339 (CA3), cert. denied, 358 864, 79 (1958); Reed Robilio, 376 392, 394 (CA6 1967). conclusive congressional intent, stated law presumed "unless intent changes expressed." Fourco Glass Transmirra Products Corp., 353 222, 227, 787, 791, 786 No regard Rockwell Int'l Credit Corp. Aircraft Ins. Group, 823 302, 304 Sarnoff American Home 798 1075, 1079 (CA7 1986); Aetna Surety Hillman, 796 770, 775-776 (CA5 Boelens Redman Homes, 759 504, 512 1985); Pressroom Unions-Printers League Income Security Fund Assurance 700 889, (CA2), dism'd, 463 1233, 26, 1449 (1983); Field Volkswagenwerk AG, 626 293, 305-306 (CA3 1980); Carson Allied News 511 22, 1975); Thomas 223 F. 41, 43 (CA8 1915). Fritz Shield 751 1152, 1154-1155 (CA11 Publicker Industries, Roman Ceramics 603 1065, 1068-1069 1979); Caperton Beatrice Pocahontas Coal 585 683, 691-692, (CA4 1978). Long, 416-417; Ross Brotherhood Electrical Workers, 634 453, 456-457 Fidelity Reserve 596 914, 918 Underwood, 339; Caspary, (relying 15). mandatory instructions Jaser New York Property Underwriting Assn., 815 240, 244 1987). powerless few between. Field, supra, 306; Dollar S.S. Lines, Merz, 68 594, 595 1934). explained involving technical identify real interest. addition union justiciable unions sue behalf NAACP Button, 371 83 328, 335, 405 (1963). Section repealed passage 25, Pub.L. 773, 62 869, 993. recognize copies easily available; handwritten copy resides National Archives. Kennedy Bank Georgia, How. 586, 1209 (1850), rejected void lacked accept stipulation pleadings reflect correctly doing, "[I]t practice necessary, cause purpose. been, sides agreed amendment." 611. viewed discretionary. indication amendments. discussing proper incorporated broad common-law ibid., 996 Mass.1812). read suggest Denny Pironi, 141 121, 124, 966, 967, 35 (1891); Menard Goggan, 121 253, 254, 873, 874, 30 914 (1887); Peper Fordyce, 119 469, 471, 287, 288, (1886); Halsted Buster, 341, 342, 276, 277, 462 Rhoads, 237, 193, 380 (1886), best understood examples discretionary referred supra. Norton Larney, 266 511, 515-516, 45 145, 147-148, 69 413 (1925). require "crystal ball" fate remand, speculating federal-court move "[a] great many zeros precede significant digit probability this." 940 (dissenting opinion). cogently explained: "After flagged [Newman-Green] wanted do. lost bulk (although won $200,000 portion longer dispute). guaranteed new run subject retaining instead chances willing pursue show loss, hope reaching assets prevail, going merits? Go things get worse likely better? refiled along way."

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