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

Filing 15

ORDER TO PLAINTIFF RE: DIVERSITY JURISDICTION (Illston, Susan) (Filed on 7/27/2017)

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