By Andrew McClain (June 6, 2018, 1:10 PM EDT) -- A recent Third Circuit opinion confirms the test of citizenship for traditional trusts for diversity purposes and highlights the importance of fully and accurately determining the citizenship of litigants. In GBForefront LP v. Forefront Management Group LLC,[1] the U.S. Court of Appeals for the Third Circuit held that, for purposes of diversity jurisdiction, the citizenship of a traditional trust — in contrast to the citizenship of a business trust — is determined solely on the citizenship of the trustee and not on the citizenship of the beneficiaries. The Third Circuit based its holding on the U.S. Supreme Court's decision in Americold Realty Trust v. Conagra Foods Inc.,[2] which differentiated between traditional trusts and business trusts for purposes of diversity jurisdiction. In Americold, the court held that the citizenship of a business trust includes the citizenship of all its members. In GBForefront, the Third Circuit held that the citizenship of a traditional trust is based solely on the citizenship of the trustee....
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