Home Safety Association of America, LLC v. Universal Administrators Services, Inc. et al

Filing 13

ORDER TO SHOW CAUSE RE: SUBJECT MATTER JURISDICTION by Judge Beverly Reid O'Connell. The Court ORDERS Removing Defendants to show cause as to why this case should not be dismissed for lack of subject matter jurisdiction. Removing Defendants' response shall be filed by no later than Friday, February 27, 2015, at 4:00 p.m. (rfi)

LINK:
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES – GENERAL
Case No.

CV 15-00838 BRO (JEMx)

Title

HOME SAFETY ASSOCIATION OF AMERICA, LLC V. UNIVERSAL
ADMINISTRATORS SERVICES, INC. ET AL

Date

February 25, 2015

Present: The Honorable

BEVERLY REID O’CONNELL, United States District Judge

Renee A. Fisher

Not Present

N/A

Deputy Clerk

Court Reporter

Tape No.

Attorneys Present for Plaintiffs:

Attorneys Present for Defendants:

Not Present

Not Present

Proceedings:

(IN CHAMBERS)

ORDER TO SHOW CAUSE RE: SUBJECT MATTER JURISDICTION
Plaintiff Home Safety Association of America, LLC (“Plaintiff”) initiated this
action in the Superior Court of California, County of Los Angeles. (See Notice of
Removal Ex. 1.) Defendants Universal Administrators Services, Inc. and Jack
Wainwright (collectively, “Removing Defendants”) removed the matter on February 5,
2015, invoking this Court’s diversity jurisdiction. (Id. ¶ 5.)
A federal court must determine its own jurisdiction even if there is no objection.
Rains v. Criterion Sys., Inc., 80 F.3d 339, 342 (9th Cir. 1996). Because federal courts are
of limited jurisdiction, they possess original jurisdiction only as authorized by the
Constitution and federal statute. See Kokkonen v. Guardian Life Ins. Co. of Am., 511
U.S. 375, 377 (1994). Original jurisdiction may be established pursuant to 28 U.S.C.
§ 1332(a)(1). Under the complete diversity rule, a plaintiff must meet the diversity
statute’s requirements with respect to each defendant. See Newman-Green, Inc. v.
Alfonzo-Larrain, 490 U.S. 826, 829 (1989) (citing Strawbridge v. Curtiss, 3 Cranch 267
(1806)). For purposes of diversity jurisdiction, a limited liability company is deemed to
be a citizen of every state of which its owners or members are citizens. See Johnson v.
Columbia Props. Anchorage, LP, 437 F.3d 894, 899 (9th Cir. 2006).
The Notice of Removal does not demonstrate complete diversity of citizenship
among the parties in this case. Removing Defendants allege that Plaintiff and Defendant
Septic Protection Plan, LLC are limited liability companies with a principal place of
business in California and Florida, respectively. (Notice of Removal ¶¶ 6, 9.) These
allegations are insufficient to establish the citizenship of these parties. See Johnson, 437
CV-90 (06/04)

CIVIL MINUTES – GENERAL

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LINK:
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES – GENERAL
Case No.

CV 15-00838 BRO (JEMx)

Title

HOME SAFETY ASSOCIATION OF AMERICA, LLC V. UNIVERSAL
ADMINISTRATORS SERVICES, INC. ET AL

Date

February 25, 2015

F.3d at 899. To demonstrate that complete diversity exists, Removing Defendants must:
(1) identify each member or owner of Plaintiff and Defendant Septic Protection Plan,
LLC, and (2) allege every state in which each owner or member is a citizen.
Accordingly, the Court ORDERS Removing Defendants to show cause as to why
this case should not be dismissed for lack of subject matter jurisdiction. Removing
Defendants’ response shall be filed by no later than Friday, February 27, 2015, at
4:00 p.m.
:

IT IS SO ORDERED.
Initials of Preparer

rf

CV-90 (06/04)

CIVIL MINUTES – GENERAL

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