Holman Building Associates, LP v. AMCO Insurance Company

Filing 6

ORDER TO SHOW CAUSE REGARDING SUBJECT MATTER JURISDICTION. Re: Dkt. No. 1 . Response due by 3/3/2017. Signed by Judge Nathanael Cousins on 2/24/2017. (lmh, COURT STAFF) (Filed on 2/24/2017)

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1 2 3 4 5 6 7 UNITED STATES DISTRICT COURT 8 NORTHERN DISTRICT OF CALIFORNIA 9 10 11 HOLMAN BUILDING ASSOCIATES, LP, United States District Court Northern District of California Plaintiff, 12 v. 13 14 AMCO INSURANCE COMPANY, Case No. 17-cv-00899 NC ORDER TO SHOW CAUSE REGARDING SUBJECT MATTER JURISDICTION Re: Dkt. No. 1 Defendant. 15 16 17 Defendant AMCO Insurance Company removed this case from Monterey County 18 Superior Court on February 22, 2017, on the basis of diversity jurisdiction. Dkt. No. 1. 19 AMCO is an Iowa corporation, and plaintiff Holman Building Associates, LP, is a limited 20 partnership. Id. at 3. 21 The federal courts are courts of “limited jurisdiction” and only have jurisdiction as 22 authorized by the Constitution and Congress. Owen Equip. & Erection Co. v. Kroger, 437 23 U.S. 365, 374 (1978). The Court must presume a lack of jurisdiction until the party 24 asserting jurisdiction establishes otherwise. Scott v. Breeland, 792 F.2d 925, 927 (9th Cir. 25 1986). The asserted source of subject matter jurisdiction here is diversity jurisdiction. 26 “Diversity jurisdiction” is assessed under 28 U.S.C. § 1332. The court considers the 27 citizenship of each party to the lawsuit, and there must be “total diversity” of citizenship 28 between each plaintiff and each defendant and the amount in controversy must exceed Case No. 17-cv-00899 NC 1 $75,000. In determining whether diversity jurisdiction exists, the Court must consider the 2 citizenship of all partners in a limited partnership. Carden v. Arkoma Assocs., 494 U.S. 3 185, 195 (1990); Grupo Dataflux v. Atlas Glob. Grp., L.P., 541 U.S. 567, 569 (2004). 4 Here, based on the removal papers, it is unclear that all of the partners in the 5 Holman partnership are diverse from AMCO, an Iowa corporation, with its principal place 6 of business in Iowa. There is no question regarding the amount in controversy. Dkt. No. 1 7 at 3. Thus, the Court ORDERS AMCO to respond to this order, presenting facts to the 8 Court demonstrating that each member of the Holman limited partnership is diverse from 9 AMCO. This response must be filed by March 3, 2017. 10 United States District Court Northern District of California 11 IT IS SO ORDERED. 12 13 Dated: February 24, 2017 14 _____________________________________ NATHANAEL M. COUSINS United States Magistrate Judge 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Case No. 17-cv-00899 NC 2

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