Today, the Eleventh Circuit reversed dismissal of a diversity-and-RICO case for lack of subject matter jurisdiction over claims that non-diverse subsidiary corporations assigned to their diverse parent.  The court did uphold the dismissal to the extent it tossed out the civil RICO counts for failure to state a viable claim, but it went on to conclude that the pre-suit assignment didn’t defeat diversity of citizenship jurisdiction.  The court refused to apply a presumption that the subsidiary-to-parent assignment involved collusion for the purpose of creating diversity.  Ambrosia Coal & Construction Co. v. Morales, No. 05-14255 (11th Cir. Apr. 2, 2007).

Barry Barnett

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