Document: 541 U.S. 567 GRUPO DATAFLUXv.ATLAS GLOBAL GROUP, L. P., ET AL. No. 02-1689. Supreme Court of United States. Argued March 3, 2004. Decided May 17, Respondent Atlas Global Group, a limited partnership created under Texas law, filed state-law suit against petitioner, Mexican corporation, in federal court, alleging diversity jurisdiction. After the jury returned verdict for Atlas, but before entry judgment, petitioner moved to dismiss lack subject-matter jurisdiction because parties were not diverse at time complaint was filed. In granting motion, Magistrate Judge found that, as partnership, citizen two its partners, also respondents, citizens filing; and that requisite absent citizen. On appeal, urged Fifth Circuit disregard failure filing partners had left trial began and, thus, existed thereafter. Relying on Caterpillar Inc. v. Lewis, 519 U. S. 61, held conclusiveness citizenship is subject an exception where, here, jurisdictional error identified until after jury's postfiling change cured defect it identified. Held: A party's cannot cure action. This has long adhered rule cases depends state facts filing. Caterpillar's statement "[o]nce case been tried court . considerations finality, efficiency, economy become overwhelming," S., 75, did augur new approach deciding whether cured. The addressed by dismissal party destroyed diversity, curing method time-of-filing rule. never approved deviation from longstanding "[w]here there no party, depending condition governed condition, commencement suit." Conolly Taylor, 2 Pet. 556, 565 (emphasis added). Dismissal only option available here. Allowing existing would contravene principle. Apart breaking with this Court's precedent, holding "finality, judicial economy" can justify suspension create indeterminate scope bound produce costly collateral litigation. Pp. 570-582. 312 F. 3d 168, reversed. SCALIA, J., delivered opinion Court, which REHNQUIST, C. O'CONNOR, KENNEDY, THOMAS, JJ., joined. GINSBURG, dissenting opinion, STEVENS, SOUTER, BREYER, joined, post, p. 582. CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR FIFTH CIRCUIT. William J. Boyce argued cause petitioner. With him briefs Warren Huang Mark A. Robertson. Roger B. Greenberg respondents. brief Gerardo Garcia. JUSTICE SCALIA Court. 1 presents question post-filing action premised upon citizenship. See 28 § 1332. * law. November 1997, Grupo Dataflux, States District Southern Texas. contained claims breach contract quantum meruit, seeking over $1.3 million damages. It alleged "[f]ederal proper based pursuant 1332(a), between [Atlas] or Mexico [Grupo Dataflux]."1 App. 19a (Complaint ¶ 3). Pretrial motions discovery consumed almost three years. October 2000, consented presided Judge. 27, 6-day trial, favor awarding $750,000 3 18, Dataflux motion Fed. Rules Civ. Proc. 12(b)(1), (h)(3). granted motion. accepted each State foreign country any Carden Arkoma Associates, 494 185, 192-195 (1990). Because who filing, (It Delaware other partners.) And defendant, aliens both sides case, therefore absent. Mossman Higginson, 4 Dall. 12, 14 (1800). dispute finding Appeals reverse transaction consummated month began. since when rendered verdict, inappropriate. agreed. 174 (2002). acknowledged general purposes determining existence jurisdiction, be determined reference they Id., 170. However, relying our decision 61 (1996), following conditions are satisfied: 5 "(1) [A]n removed constitutional and/or statutory requirements met, (2) neither nor judge raise rendered, dispositive ruling made (3) issued, cured." 3d, 174. 6 strictly follows: "If point prior ruling, issue raised, must apply regardless subsequent changes citizenship." Ibid. 7 present having verdict; composition (in view) defect; reversed remanded instructions enter judgment Atlas. We certiorari. 540 944 (2003). II 8 "the things brought." Mollan Torrance, 9 Wheat. 537, 539 (1824). hornbook law (quite literally2) taught first-year students basic course civil procedure. measures all challenges filing—whether challenge brought shortly even first appeal. (Challenges raised final judgment. Capron Van Noorden, Cranch 126 (1804).) have costs imposes. For example, Anderson Watt, 138 694 (1891), executors estate, claiming New York citizens, diversity-based defendants Florida citizens. When later developed plaintiffs sought save revoking letters testamentary one executor remaining fact British rejected attempted salvage operation, included Yorker. 708. dismissed want though about 5½ years earlier, entered decree ordering land sold sale made, exceptions overruled, come appeal order confirming sale. 698. Writing Chief Justice Fuller principle set forth (1829), "jurisdiction "[J]urisdiction," he reasoned, "could more given amendment than if sued another subsequently give removing State." 708.3 10 uncontested application require dismissal, contends "should accept very principle." Brief Respondents 2. rely Caterpillar, supra, overwhelming." unquestionably provided ratio decidendi 11 broke ground, diversity. That "[T]he always is, should be, objection taken reason some parties, indispensable their interests severable without prejudice rights may retained them." Horn Lockhart, 17 Wall. 570, 579 (1873). Federal Rule Civil Procedure 21 provides "[p]arties dropped added own initiative stage such terms just." By now, "it well settled invests district courts authority allow dispensable nondiverse time, rendered." Newman-Green, Alfonzo-Larrain, 490 826, 832 (1989). Indeed, Newman-Green appeals dismissing party. 837. 12 involved unremarkable established exception. Complete lacking removal shared Kentucky defendants. Almost denied remand, diversity-destroying defendant out dismissed. proceeded resulting Lewis. unanimously complete case. 13 sum analysis approving acknowledgment Lewis's admission "complete judgment." 73. explain why solved problem oversight, nothing novel explain. postsettlement just done Newman-Green. cases, less-than-complete subsisted throughout converted Horn, 579. While recognizing "technically" distinguishable reasoned "this factor heart analysis. ." F.3d, 172-173. crux analysis, according Circuit, 75. indeed different issue. related defect, namely, comply requirement statute, 1441(a), removal.4 argument directed took starting "ultimate satisfaction ought swallow up antecedent violations." 74 therefore, defect—"Caterpillar's meet 1441(a) fit adjudication petition filed," id., 73—did once longer defect. III 15 To knowledge, articulated Marshall 1829 Conolly, Pet., Unless manufacture brand-new rule, purported arose action, continuing Withdrawal single artificial entity remained True, consequently citizenship, changed. But allowing Conolly.5 decline do today what refused past 175 16 scope. cabin "[i]f [absence filing] limitation unsound certain ignored practice. basis logic preverdict eliminated Either (because time) does irrelevant). If former, then inappropriate; latter, retention postverdict 18 Only escapes dilemma mind, satisfactory. First, might say cures remains unnoticed end trial. so much logical explanation restatement illogic produces dilemma. There conceivable deficiency continues despite suddenly disappear rendering verdict. Second, cure, failed object forfeited his objection. enough, comes principle, reaffirmed earlier Term, "a court's expanded account parties' litigation conduct." Kontrick Ryan, 443, 456 (2004). "A litigant generally same initially highest appellate instance." 455. Circuit's makes casualty either jurisprudence, principled way defend it. 19 not, sure discarded 8% concluded 2003 actually went median disposition nearly Administrative Office Courts, Statistics Diversity Filings Terminations Courts Calendar Year (on file Clerk Court). environment, focuses efficiency possibly line drawn Appeals. As Garza observed dissent: 20 "[T]here difference moment retires. Nor, matter, large mid-way through complicated requiring great deal discovery, often expend tremendous resources goes trial." 177. IV rests principal propositions: (1) partnership; refusing recognize wastes resources, while creating not. discuss turn. 22 Unlike dissent, turn here least "minimal diversity."6 Regardless how characterizes ways could conclude acknowledge treat like never, former; dissent suggests case.7 diverges adopting latter approach, stating seems indistinguishable action." Post, 591 (internal quotation marks omitted). 23 equation partner flatly inconsistent Carden. "real controversy" determine counted majority reasoning "[t]he presented various considered multiple respondents one: called partnership." 188, n. 1. Today's counters "[w]hile characterized entity, exists looks several persons composing [the entity]." 591, citations true "looks to" purpose compose treated parties. Carden, ("[W]hat we decide determined"); 195 ("[W]e reject contention determine, purposes, consult less entity's members").8 24 beginning plaintiff (Atlas), which, sole (Dataflux). Thus, fails "two adverse [who] co-citizens." Farm Fire & Casualty Co. Tashire, 386 523, 531 (1967). Contrary dissent's characterization, then, "party lineup simply trimmed down ever-present core met requirement." 591. Rather, changed changing internal composition. 25 incompatibility attempt revealed curious anomaly: unlike every dropping (such dismiss) necessary get spoilers possible: hardly "dismissed" jurisdiction.9 B 26 now consideration conceptual difficulties practical consequences. precisely change, constant response wasteful. applies establish (and protect destruction), lacks prevent perfect jurisdiction). 583-584. destruction perfection issue, policy goal minimizing thwarted whenever announced, arousing hopes further future. Cf. Dretke Haley, ante, 394-395 (recognizing creation judge-made procedural rules will enmesh testing boundaries exception). litigation-fostering effect particularly strong derived expandable concept "efficiency" rationale relied dissent. 27 argues essential uphold similar followed refiling condemns "an replay with, likelihood, ultimate outcome." 595. expect outcome," waste slogging They settle, supplying range award. settlement instead retrial probably occur outcome. stakes remain players shown other's cards, likely play hand sake game. finally, run "relitigation 1997," 598, "waste" great. Having pretrial current most proceed promptly Looked overall effect, merely sunk proposed Absent uncertainty (which readiness preserve future), obvious course, whose Atlas's was, immediately did, prejudice. Had second pursued one, little doubt resolved merits now. Putting aside passed today, wasted reversal dismissal—time spent litigating (or engaging serious talks) 29 thus far litigated 6½ years, including 3½ conceded Compared her attention, counsels strongly impair certainty thereby encourage 30 31 endorse pedigree centuries. Uncertainty regarding undesirable, stability time-tested weighs heavily approval deviation. 32 ordered. Notes: Title 1332(a)(2) provides: "The shall original actions where matter controversy exceeds $75,000, exclusive interest costs, "citizens subjects state." See,e. g., Friedenthal, M. Kane, Miller, (3d ed. 1999); Wright Law 173 (6th 2002). 13B Wright, E. Cooper, Practice 3608, 452 (1984). asserts thatAnderson "not altogether tune Newman-Green," (opinion J.), easily harmonized. suggests, refuse diversity-perfecting independent party; alteration coexecutorship into lone executorship—much partners. provides, relevant part: "Except otherwise expressly Act Congress, defendants, division embracing place pending." acknowledges applied [Chief Justice] Marshall's categorically woulddestroy jurisdiction," 583-584, "[i]n contrast, similarly steady lineup, alterations previously defective 584. authorities call particular aspect case— (quoted text) identifies five permitted Every them identify answer diversity" straightforward suggests. understand mean leastone side extraconstitutional required lacking. possible, clear, opposing two-party cocitizens, yet minimal Article Although said requires co-citizens," (1967), multiple-citizenship situation. clear 185 (1990), Constitution. 588-590. corporation incorporated business." 1332(c)(1). inquiry hypothetically rewriting, whatever Constitution support laws bearing question. Whether subconstitutional partnership—and leads conclusion cocitizens. appears leave open possibility crossed future contrastingCaterpillar involving polar extreme moves minimally 590. These statements fromCarden rebut assertion association aggregating citizenships members" "[w]ith equal plausibility `aggregation' composed members, `entity' comprising members." 590, 6. think evident decisively adopted understanding "entity," rather "aggregation," An additional anomaly, individual whom treatslike enabling withdrawal personally Dataflux's add counterclaim. 13(h), "[p]ersons those (Emphasis added.) 33 BREYER join, dissenting. 34 lawsuit incomplete among parties: Group 98a; (Dataflux), business Mexico, 18a. completed September 2000 unrelated lawsuit, Mexican-citizen withdrew 98a, 122a-123a. commenced existed. favorable moving draw initial flaw attention. holds "still burden[s] run[s] case," 70 (1996); see 572-576; consequently, entire nullified. my view, here—the absence diversity—"is fatal ensuing adjudication." 64. accord I intact results six-day completely expose "exorbitant cost" relitigation, 77. 35 Marshall, pathmarking 1824 539, instructed "that brought, vesting, ousted events." He extract text. complete-diversity text 1789 Judiciary Act, stated Strawbridge Curtiss, 267 (1806). Compare 530-531 (1967) (complete-diversity statutory), (2d 1984) (time-of-filing "represents decision"). 36 destroy See, e. Gwaltney Smithfield, Ltd. Chesapeake Bay Foundation, Inc., 484 49, 69 (1987) (SCALIA, concurring part judgment); St. Paul Mercury Indemnity Red Cab Co., 303 283, 289-290 (1938); Mollan, Wheat., 539-540. consistently applied, sensible refusal losing summary assert bets off ground originally present, thereafter divested. 37 Keene Corp. States, 508 200, 207-208 (1993) (dismissing suit); Minneapolis Louis R. Peoria Pekin Union 270 580, 586 (1926) (same); 694, 707-708 (1891) (same), 64 (not 837-838 (1989) Mullaney Anderson, 342 415, 416-417 (1952) (1873) (1829) (same). Instead, recognized "untimely compliance," Lexecon Milberg Weiss Bershad Hynes Lerach, 523 26, 43 (1998), announced operate resolution resolution, 38 background fuller detail, respondent Delaware-citizen partner,1 federal-court Mexico. 169-170 (CA5 2002); 18a-19a, Petitioner 3. Seeking recovery meruit claims, erroneously asserted 1332(a). 169-170; 18a-19a.2 admitted though, fact, exist Atlas' 170; 35a; 195-196 (1990) (federal look partnership's limited, general, diversity). addition, arguably ranked 585, 39 weeks suit, partnership. 14a, 122a-123a, 126a-128a; Appellants 01-20245 (CA5), 7. reorganization, disputed, 2; 40 Prevailing gained $750,000. raising, original, pretrial-cured, 42a-49a. motion; simultaneously, "ordered statute limitations [be] stayed date filed, ten days [December 6, 2000], refile appropriate forum." Cert. 20a-22a (capitalization court. 173-174. Viewing 826 (1989), "instructive," "compel[ling]," unnecessary inappropriate "erase result verdict] parties] relitigate claims." 171-174. 41 decisions closely point. citizen, corporate defendants—Caterpillar Illinois, Whayne Supply Company, 64-65. Several months later, Liberty Mutual, Massachusetts intervened plaintiff, asserting 65. Lewis Supply, notice removal. remand Mutual claim Supply's presence defeated 65-66. Lewis' remand. 66. settled, suit. 42 yielded corresponding Caterpillar. 66-67. Sixth prevailed. 67. Observing removal, incomplete, obligatory. turn, Appeals' judgment: "[A] failing improperly removed," unanimously, "is entered." concerned Illinois Venezuelan four domiciled Venezuela. 828. partial appealed. Sua sponte, Seventh inquired Venezuela-domiciled spoiled 828-829.3 three-judge panel plaintiff's drop citing 21. 829.4 full empaneled en banc, authority. 830-831. determination. courts, held, "posses[s] grant parties." 836.5 44 within III's compass start. Const., Art. III, 2, cl. ("The Power extend Cases State, Citizens thereof, Subjects."); ("Article poses obstacle legislative extension founded co-citizens."). flaw—in case—was governing commenced, proceedings. 573 (describing judgment"). 45 bears clarification common onset involves spoiler individual. 587-588 page. qualification sue 1332, partner, attributed 195-196. 46 Notably, however, suggest adequate some, all, "single entity," 1, share contrary, emphasized Congress could, "by legislation," "wide assortment entities possessing powers characteristics entitled `citizen' members' consulted." 197. disarmed making determinations—for legislating counts 1332 purposes—if itself commanded partner's alike, inescapably adheres entity. ibid.; cf. Steelworkers H. Bouligny, 382 145, 153 (1965) (assimilating unincorporated labor unions status corporations counting member's "suited branch"). Just dictate decision, plainly character. 47 maintains, agrees, 573-574, properly bracketed subtraction diversity; instead, aligned post-commencement litigation, State. 12-14, 9, 23-24; Tr. Oral Arg. 8-11. ranks equivalent 48 "if sue[d] state, [could not] himself, becoming 565.6 files semblance move manufactures outset. minimally, completely, proceedings 64-65; 828; 587-589. postcommencement requirement.7 49 No moved. essence, me Ante, 575.8 correctly states, disagreement lies "treat 578. draws distinction enterprise persons, members exit. 575 [in case] party."). Resisting far-from-inevitable alignment, bracket multimember partially membership together multiparty joined drop. rulings generally, questions adjudicatory particular, operations ordinarily preferable wrecking ball. C 50 sees court-ordered dismissals 173-174; 23, 26-27; Reply 11; 15-16. attention attracted But, observed, these [not] exact scenarios." 173. odd, indeed, hold, flaws nonetheless tolerable exercised. Removal totally dependent ("any [a] States"). "considerations central treatment satisfy [complete-diversity] 1441(a)," 574 omitted), force appraising "statutory defect" ibid. original), i. e., 51 Moreover, route arrives obligation counsel alert requirements. Bender Williamsport Area School Dist., 475 534, (1986) ("every special lower review, prepared concede it" (quoting Mitchell Maurer, 293 237, 244 (1934))); Republic Ins. Receivership Chase Manhattan Bank, 315 170-171 (CA2 2003) ("We threshold ."); California Edison 300 Supp. 2d 964, 972 (ED Cal. 2004) (district "independent address [subject-matter jurisdiction] sua sponte" omitted)); Trawick Asbury MS Gray-Daniels, LLC, 697, 699 (SD Miss. (criticizing amount research" 580 rigidly "no case"). equally applicable 52 short, comprehended teaching Newman-Green: displaced "jurisdictional requiremen[t] [is] [typically, judgment] dispositive] 174.9 D 53 "overwhelming" undiluted 75; 836-837. Friends Earth, Laidlaw Environmental Services (TOC), 528 167, 191-192, (2000) (noting stricter standing mootness view "sunk costs" "case litigated"). rigid insistence elimination 837.10 Similarly unquestioned expected "simply [to] Court" rerun ibid.11 prescription, cut loose court-made sense, accounts order. 54 hypothesizes settle avoid fresh costs. 581. majority's forecast, ignores history Knowing occasions missed opportunities settle: reversal. "waste[d] resources," Even favor, weigh jurors, tactical knowledge gleaned yield outcome around. too, prevailed committed 582, cost rational ignore, but, practice, hard sideline. settlement, estimate outcomes, guaranteed. 55 respects, stronger departure 587 (discussing Caterpillar). loser timely fruitlessly objected defendant's improper 74. acknowledged, "all removal." Though mindful "antecedent violatio[n]," declined disturb merits. 74-75. erase resembles except diverse. thing objections persists, 455 (2004); (1804), quite tolerate disappeared 56 sustains outcomes: prompt resistance garnered forum selected, nevertheless judgment; incorrectly conceding answer, 35a, leaving record uncorrected favored allowed return square unburdened irony juxtaposition, charge manipulation 57 Nor affirmance entail significant risk cases. Rarely, ever, bring invoking exist, hope jurisdiction-perfecting event. Such anticipation swift detection impediment. Furthermore, risks sanctions displeasure invoked." 77-78. fears "litigation-fostering effect" 581, appear imaginary real. wave likely, courts' experience shows. 58 Also distinguishing "satisfied day spare take year lawsuit's commencement." 65 (citing 1446(b)). pending one-year barred Nothing briefing precipitously outpacing fast-running period; rested events occurred 18a, 22a-23a, fell comfortably bar.12 determinative de facto period. 459. 59 sum, effectively returns relitigation 1997. lost once, gets unmerited chance, mind "just along way." 837, burdening task replaying kind fully fairly tried. Neither demands installs. 60 invokes "175 years" 575, endorsing sound. point, united. class divide—cases multi-member partnership—the impelling today's approves. precedent provide disposition, fashioned just, speedy, inexpensive determination [of cases]," immutable instant articulation. adjustable light constantly gain handling troop them. Great-West Life Annuity Knudson, 534 204, 233 (2002) (GINSBURG, dissenting); Mexicano Desarrollo, Alliance Bond Fund, 527 308, 336-337, (1999) part) (recognizing, contemporary English decisions, dynamic quality equity jurisprudence evolving social commercial needs). affirm faithfully sensibly path marked At comprised Bahia Management, C., liability company (LLC), members; Capital Financial Partner, corporation; HIL Holdings, citizenship; (4) Francisco Llamosa, citizen; (5) Oscar Robles, 3; 98a. arguably, ruled member LLC purposes. GMAC Commercial Credit Dillard Dept. Stores, 357 827, 829 (CA8 2004); Cosgrove Bartolotta, 150 729, 731 (CA7 1998). withdrew. Section 1332(a) "(a) value between— States; "(2) state; "(3) parties; "(4) defined section 1603(a) title, "For section, 1335, 1441, alien permanent residence deemed domiciled." domicil stateless person 1332(a)(3), providing suits parties," 1332(a)(2), authorizing State" SeeNewman-Green, 21, "Parties CourtNewman-Green, 734 1470, 1472 (ND Ill. 1990). InConolly, "was struck bill court." 564. Since variety during pendency 584; 5. resembling hand, members. plausibility, "aggregation" "entity" 571-572, coexecutors benefit estate. 703. One coexecutors, turned out, adjudication, coexecutor withdraw lineup. harmonize attributing aggregate, coexecutors. 572, characterization preordained. If, me, plausible, preserving hold sway. entity,"Carden "to entity]," Great Proof Hotel Jones, 177 449, (1900). I. side. 585-586. According majority, "unsound practice" rulingAnte, 575-576. Declining justified theory [or ruling] objection." 576 (2004)). court-created 583; incumbent define contours rule's application. forfeiture theory; rather, accurately reflected underpinnings observes, concerns pressing adjudicated disposition. 576-577. system," 192, (2000), "overwhelming," 75 (1996). advanced underinclusive make "illogic[al]," 576; readily manageable. inapplicable abjures mechanical responding underlying justifications indisputably present. stark contrast seeante, 580-582, said: dismissed, submit materials already hand. compelled jump [such] hoops hypertechnical purity." unlikely bar repeat performance representation [Texas] savings assuming applies, 22; seeid., 31. 22a (District staying case"); 586. citation saving note provision State's Tex. Prac. Rem. Code Ann. 16.064 (1997), covering wrong forum: period suspends running if" "lack jurisdiction." described "remedial nature," "liberally construed." Vale 809 W. 324, 326 (Tex. 1991). Counsel suggested apply. 22, would. N. Y. 205(a) (West ("If terminated," commence six months. ."). oral argument, indicated supply andquantum Laubach Trust/The Georgetown Corp./W. Trust, 80 149, 160 2002) ("Breach limitations." 16.004 (1986))); Mann Jack Roach Bissonnet, 623 716, 718 1981) ("[The] recover species debt," debt 16.004.). allows actions. re Kliment Frances Halsband, Architects, Div. 143, 147, 770 329, 332 (1st Dept., six-year Eisen Feder, 307 817, 818, 763 279, 280 (a actions, 213.2 2003)).

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