Charter Asset Management Fund, L.P. v. Indiana College Preparatory School, Inc. et al

Filing 7

Order to show cause re: subject-matter jurisdiction signed by Magistrate Judge Howard R. Lloyd on 6/27/2017. Show Cause Response due by 7/5/2017. (hrllc3S, COURT STAFF) (Filed on 6/27/2017)

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E-filed 6/27/2017 1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 CHARTER ASSET MANAGEMENT FUND, L.P., 8 Plaintiff, 9 10 United States District Court Northern District of California 11 12 13 Case No.17-cv-03577-HRL ORDER TO SHOW CAUSE RE: SUBJECT-MATTER JURISDICTION v. INDIANA COLLEGE PREPARATORY SCHOOL, INC., et al., Defendants. Defendants Massa Financial Solutions, LLC, and Christopher David Massa removed this 14 action to federal court on June 21, 2017. Dkt. No. 1. Jurisdiction is premised on diversity of 15 citizenship. The notice of removal asserts that Defendants are citizens of Ohio and Indiana and 16 that “Plaintiff is a citizen of both Delaware and California” because it is organized under the laws 17 of the former and has its principal place of business in the latter. Dkt. No. 1, ¶¶ 6-12. 18 Limited partnerships, however, are treated as citizens of every jurisdiction in which their 19 partners are citizens for the purpose of diversity of citizenship. Johnson v. Columbia Properties 20 Anchorage, LP, 437 F.3d 894 (9th Cir. 2006). Additionally, “like a partnership, an LLC is a 21 citizen of every state of which its owners/members are citizens.” Id. The notice of removal does 22 not identify the citizenship of all of the limited partners of Plaintiff Charter Asset Management 23 Fund, LP, or of all of the owners/members of Defendant Massa Financial Solutions, LLC. As a 24 result, the court cannot determine whether subject-matter jurisdiction exists on the basis of 25 diversity of citizenship. 26 Defendants are therefore ordered to show cause why this matter should not be dismissed 27 for lack of subject-matter jurisdiction. A response to this order to show cause is due July 5, 2017. 28 Defendants’ response requires evidence, via a declaration or otherwise, that all of the partners of 1 the limited partnership are diverse in citizenship from the Defendants (including all of the 2 owners/members of the LLC). Failure to timely provide such evidence will result in remand to the 3 state court for lack of subject-matter jurisdiction. 4 5 IT IS SO ORDERED. Dated: 6/27/2017 6 7 HOWARD R. LLOYD United States Magistrate Judge 8 9 10 United States District Court Northern District of California 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2

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