Assignee Clause Law and Legal Definition

Assignee clause is a provision of the Judiciary Act of 1789. According to this clause a litigant without diversity of citizenship is prevented from assigning a claim to another who did have the required diversity. However, in 1948 the assignee clause was replaced by 28 USCA § 1359. 28 USCA § 1359 denies federal jurisdiction when a party is improperly or collusively joined, by assignment or otherwise, merely to invoke jurisdiction.