Client Alert: CMBS Trusts Maintain Access to Federal Courthouse After Americold

On Friday, February 3, Thompson & Knight received an opinion from the U.S. Fifth Circuit that significantly impacts the CMBS industry. In Hometown 2006-1 1925 Valley View, LLC v. Prime Income Asset Management, LLC et al., the Fifth Circuit ruled that only the citizenship of the trustee of a CMBS Trust must be considered for purposes of diversity jurisdiction. The Fifth Circuit’s opinion is the first by a federal appellate court involving a CMBS Trust following the U.S. Supreme Court’s recent decision in Americold Realty Trust v. ConAgra Foods, Inc., in which the court held that all beneficiaries of a REIT must be diverse.