International Information Systems, Inc. v. ESI Ergonomic Solutiions, LLC, et al

Filing 12

MINUTES (IN CHAMBERS) by Judge Andrew J. Guilford Re: ORDER TO SHOW CAUSE Re: Subject Matter Jurisdiction. Accordingly, the Court ORDERS Defendant to show cause in writing within 14 days of this Order explaining why this action should not be remanded. Defendant's filing should show that complete diversity exists. Plaintiff may submit a response within seven days of Defendant's filing. Alternatively, Defendant may stipulate to remand. (see document for details). (dro)

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

SACV 15-1027 AG (JEMx)

Title

INTERNATIONAL INFORMATION SYSTEMS v. ESI ERGONOMIC SOLUTIONS, LLC

Present: The Honorable

Date

July 13, 2015

ANDREW J. GUILFORD

Lisa Bredahl

Not Present

Deputy Clerk

Court Reporter / Recorder

Attorneys Present for Plaintiffs:
Proceedings:

Tape No.

Attorneys Present for Defendants:

[IN CHAMBERS] ORDER TO SHOW CAUSE RE SUBJECT MATTER JURISDICTION

Plaintiff International Information Systems (APlaintiff@) filed a complaint in state court seeking to allege claims for
breach of contract, misappropriation of trade secrets, and unjust enrichment concerning an agreement between
Plaintiff and ESI Ergonomic Solutions, LLC (ADefendant@). (AComplaint,@ Dkt. No. 1-1, at 1.)
Courts have diversity jurisdiction over cases where there is complete diversity of parties and the amount in
controversy exceeds $75,000. See 28 U.S.C. ' 1332. A defendant may remove an action to federal court on the basis
of diversity jurisdiction Aprovided that no defendant >is a citizen of the State in which such action is brought.@=
Caterpillar Inc. v. Lewis, 519 U.S. 61, 68 (1996) (quoting 28 U.S.C. ' 1441(b)). If a defendant is a limited liability
company (ALLC@), it Ais a citizen of every state of which its owners/members are citizens.@ Johnson v. Columbia
Properties Anchorage, LP, 437 F.3d 894, 899 (9th Cir. 2006). Defendant is an LLC but fails to provide the citizenship of
its members.
Defendant asserts that it is a citizen of Arizona because its two members are Aresidents@ of the state. (Notice of
Removal, Dkt. No. 4, at 4.) But a Anatural person=s state citizenship is
. . . determined by her state of domicile, not her state of residence.@ Kanter v. Warner-Lambert Co., 265 F.3d 853, 857
(9th Cir. 2001). Defendant must establish the citizenship of its members before the Court can determine whether
diversity jurisdiction exists.
CIVIL MINUTES - GENERAL

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

SACV 15-1027 AG (JEMx)

Date

July 13, 2015

Title

INTERNATIONAL INFORMATION SYSTEMS v. ESI ERGONOMIC SOLUTIONS, LLC

Accordingly, the Court ORDERS Defendant to show cause in writing within 14 days of this Order explaining why this
action should not be remanded. Defendant=s filing should show that complete diversity exists. Plaintiff may submit a
response within seven days of Defendant=s filing. Alternatively, Defendant may stipulate to remand.
:
Initials of Preparer

CIVIL MINUTES - GENERAL

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