28 U.S.C. § 1359 – Paul Mollica's Federal Courts Blog

Fifth Circuit Holds That 28 U.S.C. § 1359 Precludes Appointment of a “Sham” Trustee to Create Diversity Jurisdiction

In Fugedi v. Initram, Inc., No. 24-40283 (5th Cir. Sept. 9, 2025), the Fifth Circuit affirms dismissal of a case for lack of diversity jurisdiction, holding that appointment of a supposedly diverse trustee was a sham in violation of 28 U.S.C. § 1359. Section 1359 provides that “A district court shall not have jurisdiction ofContinue reading “Fifth Circuit Holds That 28 U.S.C. § 1359 Precludes Appointment of a “Sham” Trustee to Create Diversity Jurisdiction”