Travelers Property Casualty Company of America v. Techno Legend, LLC et al

Filing 11

ORDER TO SHOW CAUSE RE SUBJECT MATTER JURISDICTION by Judge Beverly Reid O'Connell. Plaintiff is ORDERED to show cause as to why this case should notbe dismissed for lack of subject matter jurisdiction. An appropriate response will properly identify and indicate the citizenship of each of Techno Legend, LLC's owners or members. Defendants shall file their response to this Order no later than Thursday, November 10, 2016, at 4:00 p.m. (rfi)

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

CV 16-07911 BRO (MRWx)

Title

TRAVELERS PROPERTY CASUALTY COMPANY OF AMERICA V. TECHNO
LEGED, LLC ET AL.

Date

November 7, 2016

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 Travelers Property Casualty Company of America (“Plaintiff”) brought
this action in on August 23, 2016, against Defendants Techno Legend, LLC and Saleh
Shalomi. (See Dkt. No. 1 (hereinafter, “Compl.”).) In its Complaint, Plaintiff alleges
that this Court has diversity jurisdiction pursuant to 28 U.S.C. § 1332.1 (Compl. ¶ 1.) A
federal court must determine its own jurisdiction, even where there is no objection to it.
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).
Under § 1332, the Court has federal subject matter jurisdiction so long as all
plaintiffs are diverse from all defendants and the amount in controversy is, at minimum,
$75,000. See 28 U.S.C. § 1332(a). Here, Defendants’ Removal sufficiently alleges that
Plaintiff is a Connecticut corporation with its principal place of business in Connecticut,
that Defendant Saleh Shalomi is a California resident, and that the amount in controversy
is $600,000. (See Compl. ¶¶ 3, 5, 36.) However, Plaintiff’s allegations regarding the

1

Plaintiff also alleges that the Court has jurisdiction pursuant to the Declaratory Judgment Act, 28
U.S.C. § 2201. (Compl. ¶ 1.) “The Declaratory Judgment Act merely creates a remedy in cases
otherwise within the court’s jurisdiction; it does not constitute an independent basis for jurisdiction.”
Morongo Band of Mission Indians v. Cal. State Bd. of Equalization, 858 F.2d 1376, 1382–83 (9th Cir.
1988). Therefore, Plaintiff must rely on § 1332 to establish jurisdiction.

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 16-07911 BRO (MRWx)

Title

TRAVELERS PROPERTY CASUALTY COMPANY OF AMERICA V. TECHNO
LEGED, LLC ET AL.

Date

November 7, 2016

citizenship of Defendant Techno Legend, LLC is not satisfactory. Plaintiff alleges that
Techno Legend, LLC is a limited liability company with its principal place of business in
California. (Compl. ¶ 4.) However, for establishing diversity jurisdiction, a limited
liability company “is a citizen of every state of which its owners/members are citizens.”
Johnson v. Columbia Props. Anchorage, LP, 437 F.3d 894, 899 (9th Cir. 2006). Plaintiff
provides no information regarding the identity or citizenship of Techno Legend, LLC’s
members or owners.

Accordingly, Plaintiff is ORDERED to show cause as to why this case should not
be dismissed for lack of subject matter jurisdiction. An appropriate response will
properly identify and indicate the citizenship of each of Techno Legend, LLC’s owners or
members. Defendants shall file their response to this Order no later than Thursday,
November 10, 2016, at 4:00 p.m.

:

IT IS SO ORDERED.
Initials of Preparer

rf

CV-90 (06/04)

CIVIL MINUTES – GENERAL

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