Branch Banking and Trust Company v. E&D Properties, L.L.C. et al

Filing 7

ORDER that the plaintiff has until January 24, 2013, to amend the complaint to allege § 1332 jurisdiction sufficiently, see 28 U.S.C. § 1653; otherwise, this cause shall be dismissed without prejudice. Signed by Honorable Judge Myron H. Thompson on 1/16/2013. (jg, )

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IN THE DISTRICT COURT OF THE UNITED STATES FOR THE MIDDLE DISTRICT OF ALABAMA, NORTHERN DIVISION BRANCH BANKING AND TRUST COMPANY, Plaintiff, v. E&D PROPERTIES, L.L.C., RODNEY A. DECKER, and DAVID L. EARNEST, Defendants. ) ) ) ) ) ) ) ) ) ) ) ) CIVIL ACTION NO. 2:12cv1093-MHT (WO) ORDER The allegations of the complaint in this case are insufficient to invoke this court's original jurisdiction under 28 U.S.C. § 1332 (diversity of citizenship). To invoke original jurisdiction based on diversity, the complaint must distinctly and affirmatively allege each party's citizenship. See McGovern v. American Airlines, Inc., 511 F. 2d 653, 654 (5th Cir. 1975) (per curiam). The allegations must show that the citizenship of each plaintiff is different from that of each defendant. See 28 U.S.C. § 1332; see also 2 James Wm. Moore, et al., Moore's Federal Practice § 8.03[5][b] at 8-16 (3d ed. 2006). The complaint here is insufficient because it does not indicate the citizenship of a party that is a ‘limited liability company’: defendant E&D Properties, L.L.C. “[L]ike a limited partnership, a limited liability company is a citizen of any state of which a member of the company is a citizen.” Rolling Greens MHP, L.P. v. Comcast SCH Holdings L.L.C., 374 F.3d 1020, 1022 (11th Cir. 2004). The complaint must therefore allege “the citizenships of all the members of the limited liability company.” Id. (And if the entity consists of several the complaint entities, must reflect the citizenship, or citizenships, of each and every entity based on the nature of that entity.) Also, 28 U.S.C. § 1332(c) provides that a corporation shall be deemed a citizen, first, of all States by which it has been incorporated and, second, of the State where it has its principal place of business. 2 To invoke jurisdiction based on diversity in a case in which a corporation is a party, it is thus necessary to allege distinctly and affirmatively all the States by which the corporation has been incorporated and the State in which the corporation has its principal place of business. American Motorists Ins. Co. v. American Employers' Ins. Co., 600 curiam). F.2d The 15, 16 and plaintiff's n.1 (5th complaint Cir. 1979) fails to (per allege sufficiently the citizenship of plaintiff Branch Banking and Trust Company. *** It is therefore the ORDER, JUDGMENT, and DECREE of the court that the plaintiff has until January 24, 2013, to amend the complaint to allege § 1332 jurisdiction sufficiently, see 28 U.S.C. § 1653; otherwise, this cause shall be dismissed without prejudice. DONE, this the 16th day of January, 2013. /s/ Myron H. Thompson UNITED STATES DISTRICT JUDGE

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