Login

Login

To access this feature, please Log In or Register for your Casebriefs Account.

Add to Library

Add

Search

Login
Register

Zambelli Fireworks Mfg. Co., Inc. v. Wood

    Brief Fact Summary.

    Zambelli Fireworks Mfg. Co., Inc. (Zambelli) sued Wood and Pyrotecnico F/X LLC (Pyrotecnico) for enforcement of a restrictive covenant under diversity jurisdiction, claiming that Zambelli was a citizen of Pennsylvania, Wood was a citizen of Florida, and Pyrotecnico as a citizen of Nevada.

    Synopsis of Rule of Law.

    The citizenship of a limited liability company is determined by the citizenship of each of their members for the purposes of diversity of citizenship.

    Facts.

    Zambelli Fireworks Mfg. Co., Inc. (Zambelli) is a Pennsylvania Company with its principal place of business in Pennsylvania. Wood, a Florida resident, signed an employment agreement with Zambelli that included a two-year covenant not to compete. Nevertheless, Wood went to work for Pyrotecnico F/X LLC (Pyrotecnico), a limited liability company with its principal place of business in Nevada, shortly after leaving Zambelli. Pyrotecnico’s only member was in Louisiana. Zambelli sued Wood and Pyrotecnico for enforcement of a restrictive covenant under diversity jurisdiction, claiming that Zambelli was a citizen of Pennsylvania, Wood was a citizen of Florida, and Pyrotecnico as a citizen of Nevada. The managing member of Pyrtecnico Louisiana, however, testified that he resided and worked in Pyrotecnico’s Pennsylvania headquarters.

    Issue.

    Whether the citizenship of a limited liability company is determined by the citizenship of each of their members for the purposes of diversity of citizenship?

    Held.

    Yes. Pyrotecnico is dismissed as a party within the suit. Pyrotecnico is a Pennsylvania citizen and no diversity exists with Zambelli. Citizenship of Pyrotecnico is traced through Pyrotecnico’s managing member.

    Discussion.

    The citizenship of a limited liability company is determined by the citizenship of each of their members for the purposes of diversity of citizenship.


    Create New Group

      Casebriefs is concerned with your security, please complete the following