United Steelworkers of Am. v. R. H. Bouligny, Inc. - 382 U.S. 145, 86 S. Ct. 272 (1965)

Rule:

28 U. S. C. § 1332 (c), providing that: "For the purposes of this section and section 1441 of this title, a corporation shall be deemed a citizen of any State by which it has been incorporated and of the State where it has its principal place of business."

Facts:

Respondent North Carolina corporation brought an action in state court against petitioner unincorporated labor union. The union removed the case to federal court claiming diversity of citizenship on the ground that its principal place of business was in Pennsylvania. The corporation sought to have the case remanded to state court and contended that its complaint raised no federal questions and that an unincorporated association's citizenship was that of each of its members. The district judge retained jurisdiction and noted a trend to treat unincorporated associations in the same manner as corporations and to treat them as citizens of the state wherein the principal office was located. On interlocutory appeal, the appellate court reversed. 

Issue:

Should an unincorporated labor union be treated as a citizen for purposes of federal diversity jurisdiction?

Answer:

Yes.

Conclusion:

In affirming the court of appeals, the Court held that the citizenship of an unincorporated labor union, for purposes of federal diversity jurisdiction, is that of each of its members, and that a change of this settled rule is properly a matter for consideration by Congress, and not by the courts.