YDM Management, Inc. v. United Healthcare Insurance Company, et al

Filing 6

MINUTE ORDER IN CHAMBERS by Magistrate Judge Ralph Zarefsky: The Court ORDERS Defendant TO SHOW CAUSE in writing, within seven (7) days, why this action should not be dismissed or remanded for lack of subject matter jurisdiction. (See document for further details). (ib)

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES - GENERAL
Case No.

CV 14-5248 RZ

Title

YDM MANAGMENT v. UNITED HEALTHCARE INS. CO., ET AL.

Present: The Honorable

Date

July 11, 2014

RALPH ZAREFSKY, U.S. MAGISTRATE JUDGE

Ilene Bernal

N/A

Deputy Clerk

Court Reporter / Recorder

Attorney Present for Plaintiff:

Attorneys Present for Defendants:

N/A

N/A

Proceedings:

In Chambers –
ORDER TO SHOW CAUSE RE DIVERSITY JURISDICTION

Defendant United Healthcare (UHC) removed this action based on diversity jurisdiction. The
Notice Of Removal clearly states UHC’s states of citizenship and that the amount in controversy
exceeds $75,000. It also notes Plaintiff YDM’s state of incorporation. But neither the Notice nor
the underlying Complaint indicate in what state Plaintiff has its principal place of business. See 28
U.S.C. §§ 1332(a)(1), (c)(1). It is possible that that state is also one of UHC’s two states of
citizenship. If so, the Court lacks subject matter jurisdiction. “It is best,” Circuit Judge Frank
Easterbrook has advised,
to attend to this issue at the outset, before unpleasant discoveries about jurisdictional
facts require the parties and the judge to bemoan the waste of time and money
invested in the litigation.
McMahon v. Bunn-O-Matic Corp., 150 F.3d 651, 654 (7th Cir. 1998) (Easterbrook, Circuit J.).
Accordingly, the Court ORDERS Defendant TO SHOW CAUSE in writing, within seven
(7) days, why this action should not be dismissed or remanded for lack of subject matter jurisdiction.
The Court anticipates discharging this show-cause order if, by the deadline, Defendant files an
Amended Notice Of Removal curing the shortcoming noted.
IT IS SO ORDERED.
:
Initials of Preparer

CV-90 (10/08)

CIVIL MINUTES - GENERAL

igb

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