Diversity Jurisdiction and Limited Liability Companies Joe, a resident of New Jersey, wants to open.

Diversity Jurisdiction and Limited Liability Companies Joe,
a resident of New Jersey, wants to open a restaurant. He asks Kay, his friend,
an experienced attorney and a New Yorker, for her business and legal advice in
exchange for a 20 percent ownership interest in the restaurant. Kay helps Joe
negotiate a lease for the restaurant premises and advises Joe to organize the
business as a limited liability company (LLC). Joe forms Café Olé, LLC, and
with Kay’s help, obtains fi nancing. Then, the night before the restaurant
opens, Joe tells Kay that he is “cutting her out of the deal.” The restaurant
proves to be a success. Kay wants to fi le a suit in a federal district court
against Joe and the LLC. Can a federal court exercise jurisdiction over the
parties based on diversity of citizenship? Explain.