Also known as: FRCP 17(b) · Fed. R. Civ. P. 17(b) · Rule 17(b) · capacity to sue
Written by attorneys · grounded in primary & secondary sources — see below
A procedural rule in the Federal Rules of Civil Procedure that determines a party's capacity to sue or be sued by reference to state law. Capacity of an individual is governed by the law of the individual's domicile. Capacity of a corporation is governed by the law of the state of incorporation.
Foxfire Biotech, an LLC organized under Delaware law, faces a contract suit in the District of New Jersey. The company maintains its principal place of business in New Jersey and conducts regular sales there. Because Foxfire Biotech possesses capacity to sue and be sued under applicable law, it is deemed to reside in the district for venue purposes.
Flagship Logistics, an LLC formed in State A, hires independent contractors to fulfill delivery contracts. After a customer refuses payment, Flagship Logistics files suit in its own name in federal court. State law grants the LLC capacity to sue and be sued, allowing the action to proceed without joining members.
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Fulton Shipping LP, a limited partnership formed to operate a fleet, alleges a supplier breached an equipment contract. The partnership files suit in its own name. Under governing law the limited partnership holds capacity to sue and be sued, so the court denies a motion to dismiss for lack of capacity.
Textile workers represented by a national union sue their employer for breach of a collective bargaining agreement. The union appears as plaintiff in its own name. Federal law recognizes the union's capacity to sue, permitting the action to advance on the merits.
Executors appointed in Pennsylvania commence wrongful-death actions there. After transfer to Massachusetts the defendants challenge the plaintiffs' capacity. The court examines whether the representatives possess capacity under the law of their domicile at the time suit was filed.
The Bank of the United States sues state officials in federal court to recover seized funds. The bank asserts capacity under its federal charter. The Court recognizes that the charter confers capacity to sue, establishing federal jurisdiction over the controversy.
The rule refers to state law. Under the Uniform Limited Partnership Act a limited partnership possesses capacity to sue and be sued in its own name.
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Capacity is determined by the law of the state of organization. Suspension for nonpayment of taxes may render the LLC incompetent to maintain suit under that state's rules.
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Yes. The partnership holds statutory capacity to sue on contracts arising from its activities and affairs regardless of which affiliate handled day-to-day operations.
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Federal Rule 17(b) directs courts to the law of the state under which the corporation was organized.
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…candidly admits that the action against Piper and Hartzell was filed in the United States because its laws regarding liability, capacity to sue, and damages are more favorable to her position than are those of Scotland. Scottish law does not recognize strict liability in tort. Moreover, it permits wrongful-death actions only when…