Legal Document

498 U.S. 426 111 S.Ct. 858 112 L.Ed.2d 951 FREEPORT-McMoRAN, INC., et al.v.K N ENERGY, INC. No. 90-655. Feb. 19, 1991. PER CURIAM. 1 Petitioners seek review of a decision the United States Court Appeals for Tenth Circuit, holding that Federal District lacked jurisdiction to entertain their diversity action because they added nondiverse party after filing complaint. We grant certiorari and reverse Appeals. 2 Petitioners, McMoRan Oil Gas Company (McMoRan) its parent company, Freeport-McMoRan Inc. (Freeport), sued respondent K Energy, (K N) breach contract in Colorado. claimed had failed pay price natural gas agreed upon contract, sought both declaratory relief establish damages past underpayments. based federal citizenship. At all times up including complaint, Freeport were Delaware corporations with principal places business Louisiana. was is Kansas corporation place 3 After suit filed, petitioner transferred interest limited partnership, FMP Operating (FMPO), reasons unrelated instant litigation. FMPO's partners included citizens Accordingly, before trial commenced, petitioners leave amend complaint substitute FMPO as plaintiff under Rule 25(c) Rules Civil Procedure. The permitted add but did not remove party. bench trial, held favor petitioners, appealed. reversed directed be dismissed want jurisdiction. court "although complete present when filed," addition destroyed 907 F.2d 1022, 1024 (1990). our Carden v. Arkoma Associates, 494 185, 110 1015, 108 157 explained "Carden establishes [FMPO's] real destroys district court's jurisdiction." F.2d, at 1025. 4 Our last Term considered whether citizenship must taken into account determining exists an brought by partnership. original partnership; jurisdiction, then, depended existed time commenced. But nothing suggests any change well-established rule assessed filed. have consistently if such may divested subsequent events. Mollan Torrance, 9 Wheat. 537, 6 L.Ed. 154 (1824); Clarke Mathewson, 12 Pet. 164, 171, 1041 (1838); Wichita Railroad & Light Co. Public Util. Comm'n Kansas, 260 48, 54, 43 51, 53, 67 124 (1922) ("Jurisdiction once acquired . parties. Much less defeated intervention, court, whose presence essential controversy between parties" (citations omitted)). 5 opinions plaintiffs defendants diverse breach-of-contract arose proceedings also confirm "indispensable" filed; fact, it no whatsoever outcome litigation until sometime cases require more than this. Diversity established, action. A contrary could well effect deterring normal transactions during pendency what might lengthylitiga tion. Such way required accomplish purposes Respondent relies on Owen Equipment Erection Kroger, 437 365, 98 2396, 57 274 (1978), support result reached There we ancillary extend entertaining claim against third-party defendant impleaded pursuant Procedure 14(a). casts doubt principle established previously cited lawsuit 7 motion American Mining Congress file brief amicus curiae granted. petition writ granted, judgment 8 Reversed. Justice SOUTER took part consideration or this case.

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