Jose de Anda et al v. Alexandra Investments Inc et al
Filing
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ORDER TO SHOW CAUSE WHY ACTION SHOULD NOT BE DISMISSED FOR LACK OF JURISDICTION by Magistrate Judge Ralph Zarefsky. Response to Order to Show Cause due by 3/24/2014. (See document for details). (ib)
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UNITED STATES DISTRICT COURT
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CENTRAL DISTRICT OF CALIFORNIA
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JOSE AND LAURA DE ANDA,
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Plaintiffs,
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vs.
ALEXANDRA INVESTMENTS, ET AL.,
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Defendants.
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CASE NO. CV 14-1176 RZ
ORDER TO SHOW CAUSE WHY
ACTION SHOULD NOT BE
DISMISSED FOR LACK OF
JURISDICTION
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Plaintiffs are suing over a car collision in Las Vegas in 2012. The Court
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issues this Order To Show Cause because it appears that the Court may lack subject matter
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jurisdiction.
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Federal courts are courts of limited jurisdiction, and if subject matter
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jurisdiction does not affirmatively appear, federal courts are presumed to lack jurisdiction.
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National Treasury Employees Union v. Federal Labor Relations Authority, 112 F.3d 402,
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403 (9th Cir. 1997), citing General Atomic Co. v. United Nuclear Corp., 655 F.2d 968,
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968-69 (9th Cir. 1981). The two plaintiffs ground jurisdiction on diversity of citizenship
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under 28 U.S.C. § 1332. In that context, they allege that they “reside in this district” in
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California and were “residents of the County of Los Angeles” at all relevant times. Comp.
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¶ 2. They similarly allege where one of the defendants, Rimon Elia Hormez, resides
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without alleging the state in which Hormez is a citizen. Comp. ¶ 5. But residence is not
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the same as citizenship. Kanter v. Warner-Lambert Co., 265 F.3d 853, 857-58 (9th Cir.
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2001); Jeffcott v. Donovan, 135 F.2d 213 (9th Cir. 1943). Because the allegation of
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residence is not sufficient to establish citizenship, the diversity of the parties does not
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affirmatively appear from the Complaint.
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The foregoing flaw may be curable, but the following one may not be.
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Plaintiffs must establish complete diversity to support this federal court’s jurisdiction.
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Strawbridge v. Curtiss, 7 U.S. 267, 3 Cranch 267, 2 L.Ed. 435 (1806). Even if every party
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were a citizen of the state in which Plaintiffs allege they reside (or, as to corporate
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defendants, the states in which they are incorporated and have their principal places of
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business), the Californian Plaintiffs are suing a Californian defendant, Alexandra
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Investments, in addition to two Nevadans.
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Accordingly, Plaintiffs shall show cause in writing not later than March 24,
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2014 why the action should not be dismissed for lack of jurisdiction. If, before March 24,
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2014, Plaintiffs file an amended complaint curing the jurisdictional defect, the Court will
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discharge the Order to Show Cause.
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Before closing, the Court notes another concern, namely venue. Plaintiffs are
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suing a Nevadan driver of a partially Californian-owned car for crashing into the Plaintiffs’
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car in Las Vegas.
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involved, other than that Alexandra co-owned the car that Hormez was driving.) Although
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the Court makes no ruling at this time, it appears that venue may properly lie solely in
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Nevada – and, unless the jurisdictional defects noted can be cured, in a state court there
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rather than a federal one.
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(Plaintiffs do not allege how Alexandra Investments is at fault or
DATED: February 25, 2014
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RALPH ZAREFSKY
UNITED STATES MAGISTRATE JUDGE
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