Purchasing Power, LLC v. Bluestem Brands, Inc.

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In December 2011, Purchasing Power filed suit against Bluestem in Georgia state court. Bluestem, a citizen of Minnesota and Delaware, sought to remove the case to federal court based on diversity jurisdiction. Burr & Forman (B&F) was the law firm representing Purchasing Power. In 2014, the district court granted summary judgment for Bluestem. On appeal, this court noted that the pleadings did not allege Purchase Power's citizenship. B&F had failed to realize, and no one bothered to investigate, that Falcon, one of the LLCs, did not own an interest in Holdings directly. This missing piece of information was essential in destroying diversity jurisdiction because Falcon was incorporated in Delaware, of which Bluestem was a citizen. The district court subsequently found that B&F misrepresented to either the district court or Bluestem on five occasions that diversity of citizenship existed. In this appeal, B&F challenged the district court's sanctions order. The court reversed the district court's imposition of sanctions, concluding that, while the requirements of diversity jurisdiction were complicated, no party in this case acted with bad intentions. View "Purchasing Power, LLC v. Bluestem Brands, Inc." on Justia Law