GCCFC 2005-GG5 Hegenberger Retail Limited Partnership v. Arce et al

Filing 15


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1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 8 GCCFC 2005-GG5 HEGENBERGER RETAIL LIMITED PARTNERSHIP, Plaintiff, 9 v. Case No. 17-cv-03854-SI ORDER TO PLAINTIFF RE: DIVERSITY JURISDICTION 10 11 GEORGE A. ARCE, et al., United States District Court Northern District of California Defendants. 12 13 Plaintiff GCCFC 2005-GG5 Hegenberger Retail Limited Partnership filed this breach of 14 15 16 17 18 guaranty action against defendants George Arce, Raquel Remedios, and Leslie Tuttle on June 7, 2017. In the complaint, plaintiff alleges that the Court has subject matter jurisdiction under 28 U.S.C. § 1332(a)(1). Compl. (Dkt. No. 1) ¶ 4. Jurisdiction founded on diversity of citizenship “requires that the parties be in complete diversity and the amount in controversy exceed $75,000.” Matheson v. Progressive Specialty Ins. Co., 319 F.3d 1089, 1090 (9th Cir. 2003). Complete 19 diversity means that “each of the plaintiffs must be a citizen of a different state than each of the 20 defendants.” Allstate Ins. Co. v. Hughes, 358 F.3d 1089, 1095 (9th Cir. 2004). 21 Plaintiff alleges that the parties are of diverse citizenship. See Compl. ¶¶ 5-13. Plaintiff 22 alleges that defendants are citizens of California and Missouri. Id. ¶¶ 11-12. Plaintiff alleges that, 23 as a general partnership, its citizenship is that of its partners. Id. ¶ 5. This much is correct. See 24 Carden v. Arkoma Associates, 494 U.S. 185, 195 (1990); accord Johnson v. Columbia Props. 25 Anchorage, LP, 437 F.3d 894, 899 (9th Cir. 2006). Plaintiff then alleges that one partner is a 26 Delaware Limited Liability Company, and the other partner is a trust, which is a citizen of Ohio. 27 See id. ¶¶ 7-9. Plaintiff does not, however, allege whether there are other owner/partners in the 28 LLC and, if so, what their citizenship is. An LLC is not treated like a corporation for purposes of 1 diversity jurisdiction. In the Ninth Circuit, “like a partnership, an LLC is a citizen of every state 2 of which its owners/members are citizens.” Johnson, 437 F.3d at 899 (9th Cir. 2006); accord 3 NewGen LLC v. Safe Cig, LLC, 840 F.3d 606, 611 (9th Cir. 2016). Plaintiff has not adequately 4 pled the basis for subject matter jurisdiction, because it states only that its general partner, GCCFC 5 2005-GG5 Hegenberger Retail GP, LLC, is “a Delaware limited liability company.” Compl. ¶ 7. 6 Plaintiff must allege the citizenship of each member of GCCFC 2005-GG5 Hegenberger 7 Retail GP, LLC in order to establish a basis for this Court’s jurisdiction. Plaintiff is ORDERED to 8 do so on or before August 4, 2017. If plaintiff fails to establish diversity jurisdiction by the 9 deadline, the Court will dismiss this case for lack of subject matter jurisdiction. 10 United States District Court Northern District of California 11 12 13 14 IT IS SO ORDERED. Dated: July 27, 2017 ______________________________________ SUSAN ILLSTON United States District Judge 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2

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