NexRep, LLC v. ALIPHCOM

Filing 19

ORDER directing Plaintiff TO SHOW CAUSE as to the citizenship of its members. Show Cause Response due by 3/3/2017. Signed by Judge Jacqueline Scott Corley on February 24, 2017. (jsclc1, COURT STAFF) (Filed on 2/24/2017)

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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NEXREP, LLC,

Case No. 16-cv-06647-JSC

Plaintiff,
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v.

ORDER TO SHOW CAUSE RE:
JURISDICTION

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ALIPHCOM,
Defendant.

United States District Court
Northern District of California

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Plaintiff NexRep, LLC filed this action alleging breach of contract and unjust enrichment

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against Defendant Aliphcom, d.b.a. Jawbone on November 16, 2016. (Dkt. No. 1.) Now pending

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before the Court is Plaintiff’s motion for default judgment. (Dkt. No. 16.)

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When a party seeks entry of default judgment, courts have a duty to examine their own

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jurisdiction—both subject matter and personal. In re Tuli, 172 F.3d 707, 712 (9th Cir. 1999).

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Indeed, at all times the Court has an independent responsibility to ensure it has federal subject

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matter jurisdiction. Valdez v. Allstate Ins. Co., 372 F.3d 1115, 1116 (9th Cir. 2004); see

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also Gonzalez v. Thaler, 132 S. Ct. 641, 648 (2012) (“When a requirement goes to subject-matter

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jurisdiction, courts are obligated to consider sua sponte issues that the parties have disclaimed or

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have not presented . . . . Subject-matter jurisdiction can never be waived or forfeited”) (internal

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citation omitted). Plaintiff asserts the Court has jurisdiction over Plaintiff’s claims based on

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federal diversity jurisdiction pursuant to 28 U.S.C. § 1332. Diversity jurisdiction requires that

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“the parties be in complete diversity and the amount in controversy exceed $75,000.” Matheson v.

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Progressive Specialty Ins. Co., 319 F.3d 1089, 1090 (9th Cir. 2003). Complete diversity means

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that “each of the plaintiffs must be a citizen of a different state than each of the defendants.”

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Allstate Ins. Co. v. Hughes, 358 F.3d 1089, 1095 (9th Cir. 2004). Further, the party asserting

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diversity jurisdiction bears the burden of proof. Resnik v. La Paz Guest Ranch, 289 F.2d 814, 819

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(9th Cir. 1961).

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Here, NexRep is a limited liability company (“LLC”) organized and existing under the

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laws of the State of Delaware, and Jawbone is a California corporation with its principal place of

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business in California. (Dkt. No. 16-2 ¶¶ 2-3.) Generally, an LLC is a “citizen of every state in

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which its members are citizens.” Johnson v. Columbia Props. Anchorage, LP, 437 F.3d 894, 899

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(9th Cir. 2006). However, Plaintiff has failed to include any allegations as to the citizenship of its

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members.

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United States District Court
Northern District of California

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Accordingly, Plaintiff is ORDERED to SHOW CAUSE as to the citizenship of its
members. Plaintiff shall file a written response to the Court’s Order by March 3, 2017.
IT IS SO ORDERED.
Dated: February 24, 2017
______________________________________
JACQUELINE SCOTT CORLEY
United States Magistrate Judge

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