## Facts

- R. H. Bouligny, Inc., a North Carolina corporation, sued the United Steelworkers of America, AFL-CIO in North Carolina state court for defamation arising from a unionization campaign.
- The complaint sought $200,000 in damages.
- The union, an unincorporated labor organization alleged to have its principal place of business in Pennsylvania, removed the case to federal court.
- The union asserted federal-question jurisdiction and diversity jurisdiction, arguing it should be treated as a single citizen of Pennsylvania despite having members in North Carolina.
- Bouligny moved to remand, arguing no federal question was presented and that an unincorporated association’s citizenship is determined by the citizenship of each member.
- The federal district court denied remand, reasoning that unincorporated associations should be treated like corporations for diversity purposes.
- On interlocutory appeal, the Fourth Circuit reversed and ordered remand for lack of diversity jurisdiction.
- The Supreme Court granted certiorari to decide whether an unincorporated labor union may be treated as a single citizen for diversity jurisdiction.

## Issues

1. Whether an unincorporated labor union may be treated as a single “citizen” (analogous to a corporation) for purposes of diversity jurisdiction, without regard to the citizenship of its members.
2. Whether complete diversity is defeated when any member of an unincorporated labor union shares citizenship with the opposing party.

## Decision

- The Supreme Court affirmed the Fourth Circuit’s judgment directing remand to state court.
- The Court held that an unincorporated labor union is not a “citizen” for purposes of 28 U.S.C. § 1332.
- The union’s citizenship for diversity purposes is the citizenship of each of its members.
- Because some union members were citizens of North Carolina like the plaintiff, complete diversity was absent and federal diversity jurisdiction did not exist.
- The Court declined to change the rule by judicial decision, stating that any expansion of diversity jurisdiction in this area is for Congress.

## Legal Principles

- For diversity jurisdiction under 28 U.S.C. § 1332, an unincorporated association takes the citizenship of all its members, not a principal-place-of-business citizenship.
- Corporate citizenship rules (including statutory recognition of principal place of business) do not apply to unincorporated labor unions absent congressional action.
- Prior precedent treating unincorporated associations as non-citizens for diversity purposes remains controlling; altering this jurisdictional framework is a legislative question.

## Conclusion

The Court held that an unincorporated labor union cannot be treated as a single citizen for diversity jurisdiction; instead, it shares the citizenship of each member, requiring remand when any member destroys complete diversity, and leaving any change to Congress.


United Steelworkers of Am., AFL-CIO v. R. H. Bouligny, Inc., 382 U.S. 145 (1965)