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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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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HOLMAN BUILDING ASSOCIATES,
LP,

United States District Court
Northern District of California

Plaintiff,
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v.
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AMCO INSURANCE COMPANY,

Case No. 17-cv-00899 NC
ORDER TO SHOW CAUSE
REGARDING SUBJECT MATTER
JURISDICTION
Re: Dkt. No. 1

Defendant.
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Defendant AMCO Insurance Company removed this case from Monterey County

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Superior Court on February 22, 2017, on the basis of diversity jurisdiction. Dkt. No. 1.

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AMCO is an Iowa corporation, and plaintiff Holman Building Associates, LP, is a limited

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partnership. Id. at 3.

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The federal courts are courts of “limited jurisdiction” and only have jurisdiction as

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authorized by the Constitution and Congress. Owen Equip. & Erection Co. v. Kroger, 437

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U.S. 365, 374 (1978). The Court must presume a lack of jurisdiction until the party

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asserting jurisdiction establishes otherwise. Scott v. Breeland, 792 F.2d 925, 927 (9th Cir.

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1986). The asserted source of subject matter jurisdiction here is diversity jurisdiction.

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“Diversity jurisdiction” is assessed under 28 U.S.C. § 1332. The court considers the

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citizenship of each party to the lawsuit, and there must be “total diversity” of citizenship

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between each plaintiff and each defendant and the amount in controversy must exceed
Case No. 17-cv-00899 NC

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$75,000. In determining whether diversity jurisdiction exists, the Court must consider the

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citizenship of all partners in a limited partnership. Carden v. Arkoma Assocs., 494 U.S.

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185, 195 (1990); Grupo Dataflux v. Atlas Glob. Grp., L.P., 541 U.S. 567, 569 (2004).

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Here, based on the removal papers, it is unclear that all of the partners in the

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Holman partnership are diverse from AMCO, an Iowa corporation, with its principal place

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of business in Iowa. There is no question regarding the amount in controversy. Dkt. No. 1

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at 3. Thus, the Court ORDERS AMCO to respond to this order, presenting facts to the

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Court demonstrating that each member of the Holman limited partnership is diverse from

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AMCO. This response must be filed by March 3, 2017.

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United States District Court
Northern District of California

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IT IS SO ORDERED.

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Dated: February 24, 2017

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_____________________________________
NATHANAEL M. COUSINS
United States Magistrate Judge

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Case No. 17-cv-00899 NC

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