What is the likely outcome when a company incorporated in State A sues a partnership in State B?

In determining the outcome when a company incorporated in State A sues a partnership in State B, the focus should be on the concept of diversity jurisdiction under federal law. Diversity jurisdiction requires that the parties involved in a lawsuit must be citizens of different states for the federal court to have jurisdiction over the case.

In this scenario, the company is incorporated in State A, while the partnership is in State B. Since an incorporated entity is considered a citizen of its incorporating state, the company is a citizen of State A. However, determining the citizenship of a partnership is a bit different, as partnerships are treated as citizens of all the states where their partners are citizens.

If all partners in the partnership are citizens of State B, then there would be no complete diversity between the parties, as both would essentially be from State B. This lack of diversity would typically prevent the case from being heard in a federal court based on diversity jurisdiction.

Given this context, the reasoning behind the correct choice being the granting of the motion due to lack of diversity directly supports the conclusion that the federal court would not have jurisdiction to hear the case because of the absence of complete diversity. The other options either suggest moving the case to another court without addressing the fundamental issue of jurisdiction or dismiss