This section contains the nature of the case and procedural background.

P, a Nevada citizen, sued Gustafson (D) in diversity alleging breach of an oral contract involving the proceeds of the sale of the Tropicana Hotel and Casino in Las Vegas, Nevada. P asserted that diversity jurisdiction was proper under 28 U.S.C. § 1332(a) (1988), because D was a citizen of Minnesota. D moved to dismiss the complaint for lack of subject matter jurisdiction. D had been a citizen of Minnesota. But in 1973, D moved to Nevada. From 1984-1987, D was incarcerated in Minnesota. The court found that D Gustafson maintained business contacts, bank and investment accounts, and business addresses in Minnesota. But it also found that D’s driver's license, registration, tax returns, voter registration, and passport were in Nevada. The court found that D used Nevada as his permanent address. D also had drafted a will that stated his domicile was Nevada. Further, D was constructing a new home on his ranch in Nevada. The district court found that D was domiciled in Nevada. P appealed.

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