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Supreme Court limits diversity citizenship for banks

[JURIST] In addition to its ruling [JURIST report] in the Oregon assisted suicide case, the US Supreme Court [official website] on Tuesday limited the citizenship of a bank to the state in which its main office is located for purposes of diversity jurisdiction. The Court in Wachovia Banks v. Schmidt [Duke Law case backgrounder], 04-1186, reversed a Fourth Circuit decision [PDF text] that no diversity jurisdiction existed to support a petition for arbitration by Wachovia [corporate website] in federal court. In an 8-0 opinion [text] authored by Justice Ginsburg, the Court held that banks' citizenship was limited under 28 U.S.C. § 1348 [text], otherwise federally chartered banks would have limited access to federal courts compared to state banks. Justice Thomas did not participate in the case.

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