Notwithstanding the brouhaha engendered by Citizens United v. FEC, 558 U.S. 310, 394 (U.S. 2010) , the idea that corporations are “persons” can be found in numerous California statutes, including California Corporations Code Sections 18 (“‘Person’ includes a corporation as well as a natural person”); 15901.02(y) (“‘Person’ means an individual . . . corporation . . .”); and 25013 (“‘Person’ means an individual, a corporation . . .”). If a corporation is a “person” can it be a “citizen”?
Etymologically, a “citizen” is a city dweller. The word is derived from from the Anglo-French word citizen, also meaning someone who lives in town. Ultimately, the word is derived from the Latin civis, meaning, well, a citizen. The California Government Code provides the following definition:
The citizens of the State are:
(a) All persons born in the State and residing within it, except the children of transient aliens and of alien public ministers and consuls.
(b) All persons born out of the State who are citizens of the United States and residing within the State.
Cal. Gov’t Code § 241. If the verb “born” is given a literal meaning, this definition would exclude corporations. See Waste Management of Alameda County, Inc. v. County of Alameda, 79 Cal. App. 4th 1223 (2000) (“‘Citizens’ are natural persons who are born and/or reside within a community . . . .”) disapproved of in Save the Plastic Bag Coalition v. City of Manhattan Beach, 52 Cal. 4th 155 (2011) (“the fact that a corporation is not technically a “citizen” for most purposes . . . . . does not necessarily affect its standing to pursue a ‘citizen suit.'”).
It should be noted that the California Government Code does not determine the question of corporate citizenship for all purposes. The federal courts, for example, have original jurisdiction of all civil actions when the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs, and is between, among others, citizens of different States. 28 U.S.C. § 1332(a)(1). For purposes of this federal statute, a corporation is deemed to be a citizen of every state and foreign state by which it has been incorporated and of the state or foreign state where it has its principal place of business. 28 U.S.C. § 1332(c)(1) (a special rule applies to direct actions against insurance companies).
