Opinion ID: 474501
Heading Depth: 3
Heading Rank: 1

Heading: introduction

Text: 20 The circuits have adopted different tests, as detailed below, for application of section 1359 in light of Mecom and Kramer. Additionally, commentators have suggested alternative tests that have yet to be adopted by the courts. The Second, Third, Fifth, and Sixth Circuits have adopted a motive/function test. See Mullenix, 70 Cornell L.Rev. at 1032 n. 117. 13 The substantial stake test has been accepted by the Fourth, Seventh, Eighth, and Tenth Circuits. See id. at 1034 n. 129. As we shall elaborate, both the motive/function test and the substantial stake test require subjective evaluation of a variety of factors. This is especially true for the motive/function test, which requires a court to examine states of mind. Although triers of fact are required to evaluate states of mind under many circumstances, the determination is difficult to make and subjective tests may encourage fraud. See generally Note, Manufactured Federal Diversity Jurisdiction and Section 1359, 69 Colum.L.Rev. 706, 724 (1969). To avoid the pitfalls of subjective tests, some commentators have recommended adoption of per se rules. 21 Thus, the American Law Institute (ALI) has proposed that diversity be measured by the decedent's citizenship. American Law Institute, Study of the Division of Jurisdiction Between State and Federal Courts Sec. 1301(b)(4), at 11 (1969), reprinted in Field, Jurisdiction of Federal Courts: A Summary of American Law Institute Proposals, 46 F.R.D. 141, 143 (1969). In contrast, Professor Mullenix argues that the beneficiaries' citizenship should control jurisdiction. Mullenix, 70 Cornell L.Rev. at 1044. This court has yet to adopt a test for the construction of section 1359.