The Appointment of an Out-of-State Administrator for the Sole Purpose of Creating Diversity of Citizenship Between the Parties of a Lawsuit in Order To Invoke the Jurisdiction of the Federal Courts Is “Improper” and “Collusive” Under Title 28, Section 1359, United States Code

Examines the United States Fifth Circuit Court of Appeals’ case Bass v. Texas Power & Light Company. In a wrongful death action, the Fifth Circuit held that appointment of Bass, an out-of-state administrator of the estate, for the sole purpose of manufacturing diversity of citizenship for the invokement of federal jurisdiction was “improper” or “collusive,” and in violation of United States Code Title 28, Section 1359. This cemented the recent trend of courts looking into the motive of out-of-state appointments and placing the burden of proof on the issue of jurisdiction on the administrator. The author believes that this “new interpretation has accomplished the legislative purpose behind the enactment of section 1359 . . . [the] effective limitation on federal diversity.”