Abe Fortas

“ It held that although plaintiff was endowed by New York with capacity to sue, it could not be considered a 'citizen' for diversity purposes. 129 U.S., at 682, 9 S.Ct., at 427. [7]
In recent years courts and commentators have reflected dissatisfaction with the rule of Chapman v. Barney. [8] The distinction between the 'personality' and 'citizenship' of corporations and that of labor unions and other unincorporated associations, it is increasingly argued, has become artificial and unreal. The mere fact that a corporation is endowed with a birth certificate is, they say, of no consequence. ”

“ In truth and in fact, they point out, many voluntary associations and labor unions are indistinguishable from corporations in terms of the reality of function and structure, and to say that the latter are juridical persons and 'citizens' and the former are not is to base a distinction upon an inadequate and irrelevant difference. ”

“ Extending diversity jurisdiction to unions, says petitioner, would make available the advantages of federal procedure, Article III judges less exposed to local pressures than their state court counterparts, juries selected from wider geographical areas, review in appellate courts reflecting a multistate perspective, and more effective review by this Court. ”

“ Accordingly, a sociedad, although recognized as a citizen of Puerto Rico in Russell, could not avail itself of the general diversity statute.↑ See note 4, supra.↑ The American Law Institute has proposed that for diversity purposes unincorporated associations be deemed citizens of the States in which their principal places of business are located, but that they be disabled from initiating diversity litigation in States where they maintain 'local establishments.' ALI, Study of the Division of Jurisdiction Between State and Federal Courts, Proposed Final Draft No. ”

“ ALI, Study, supra; 3 Moore, Federal Practice 17.25 (2d ed., 1964) ; Note, Unions as Juridical Persons, 66 Yale L.J. 712 (1957) . Cf. 78 Stat. 445 (1964) , which amended 28 U.S.C. § 1332 (c) to confer citizenship upon insurers, 'whether incorporated or unincorporated,' involved in direct-action suits ”