Sheenan v. Gustafson

967 F.2d 1214 (8th Cir. 1992)

Facts:

  • Plaintiff claims he had an oral agreement with defendant for proceeds of the sale of the Tropicana Hotel and Casino.

Procedural History:

  • Plaintiff files action for breach of oral contract in Minnesota federal court
  • Defendant moved to dismiss for lack of subject matter jurisdiction
  • Motion granted because plaintiff did not meet burden of proving that defendant was citizen of Minnesota
  • Plaintiff appeals

Affirmed.

Contentions of parties:

Plaintiff: Defendant is a citizen of Minnesota

Issue:

Whether a Minnesota federal court has subject matter jurisdiction over a defendant who has a presence in both Nevada and Minnesota.

Holding:

A Minnesota federal court has subject matter jurisdiction over a defendant who has a presence in both Nevada and Minnesota only if there is a (1) presence in Minnesota and (2) defendant has indefinite plans to remain in Minnesota.

Rule:

Two-Part test for domicile:

(1) Presence

(2) Intention to remain indefinitely

Reasoning:

* Evidence of Minnesota domicile:

  1. Bank and investment accounts in state since 1991
  2. Ownership of property in state by corp. controlled by defendant
  3. Condominium address used in monthly report to probation officer
  4. Use of corp. vehicles while in state
  5. Secretary and office in Minneapolis (checks for messages & mail)
  6. Location of physician, dentist, and attorney
  7. Use of Minn. bank accounts for Nevada business

* Evidence of Nevada domicile:

  1. Nevada driver’s license since 1973
  2. Personal vehicles registered in the state
  3. Filing Minn. tax returns as non-resident since 1974, with permanent Nevada address
  4. Nevada voter’s registration since 1973
  5. Passport shows valid Nevada address
  6. Will stated permanent address in Nevada
  7. Parent’s address in Nevada as permanent address
  8. Construction of new home in Nevada.

Court’s Order:

Affirmed.