What is the Assignee Clause? A Comprehensive Overview
Definition & meaning
An assignee clause is a provision that historically prevented a litigant without diversity of citizenship from assigning their claim to another party who does have the required diversity. This clause originated from the Judiciary Act of 1789. However, in 1948, it was replaced by 28 U.S.C. § 1359, which denies federal jurisdiction when a party is improperly or collusively joined, either through assignment or other means, solely to invoke federal jurisdiction.
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The assignee clause is primarily relevant in civil litigation, particularly in cases involving federal jurisdiction. It is essential for ensuring that claims are not assigned merely to create diversity of citizenship in order to access federal courts. Users may encounter this term when dealing with legal claims and assignments, and they can utilize legal templates from US Legal Forms to manage related paperwork effectively.
Key Legal Elements
Real-World Examples
Here are a couple of examples of abatement:
Example 1: A plaintiff in a state court with no diversity of citizenship attempts to assign their claim to a friend in another state to bring the case to federal court. This would violate the assignee clause.
Example 2: A litigant with a valid claim decides to assign it to a party solely to manipulate jurisdiction. This action would be scrutinized under 28 U.S.C. § 1359 for potential collusion. (hypothetical example)
Relevant Laws & Statutes
The primary statute governing the assignee clause is 28 U.S.C. § 1359, which addresses the issue of improper or collusive joining of parties to invoke federal jurisdiction. This law serves as the modern framework replacing the original assignee clause from the Judiciary Act of 1789.
Comparison with Related Terms
Term
Definition
Difference
Assignment of Claims
The transfer of a claim from one party to another.
Can occur legally unless it violates the assignee clause.
Diversity Jurisdiction
The ability of federal courts to hear cases where parties are from different states.
Assignee clause restricts assignments to create diversity.
Common Misunderstandings
What to Do If This Term Applies to You
If you are involved in a legal matter where an assignee clause may apply, it is crucial to understand the implications of claim assignments. Consider consulting with a legal professional to navigate the complexities of jurisdiction. Additionally, you can explore US Legal Forms for templates that may assist you in preparing necessary documents.
Quick Facts
Applies primarily in civil litigation.
Relevant statute: 28 U.S.C. § 1359.
Focuses on preventing collusion for jurisdictional purposes.
Key Takeaways
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FAQs
An assignee clause is a legal provision that restricts the assignment of claims to prevent manipulation of jurisdiction in federal courts.
This statute replaced the original assignee clause and addresses the issue of collusive joining of parties to invoke federal jurisdiction.
Not if the assignment is solely to create diversity of citizenship for federal jurisdiction, as this would violate the law.
