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)

E-filed 6/27/2017

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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CHARTER ASSET MANAGEMENT
FUND, L.P.,

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Plaintiff,

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United States District Court
Northern District of California

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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

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action to federal court on June 21, 2017. Dkt. No. 1. Jurisdiction is premised on diversity of

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citizenship. The notice of removal asserts that Defendants are citizens of Ohio and Indiana and

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that “Plaintiff is a citizen of both Delaware and California” because it is organized under the laws

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of the former and has its principal place of business in the latter. Dkt. No. 1, ¶¶ 6-12.

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Limited partnerships, however, are treated as citizens of every jurisdiction in which their

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partners are citizens for the purpose of diversity of citizenship. Johnson v. Columbia Properties

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Anchorage, LP, 437 F.3d 894 (9th Cir. 2006). Additionally, “like a partnership, an LLC is a

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citizen of every state of which its owners/members are citizens.” Id. The notice of removal does

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not identify the citizenship of all of the limited partners of Plaintiff Charter Asset Management

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Fund, LP, or of all of the owners/members of Defendant Massa Financial Solutions, LLC. As a

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result, the court cannot determine whether subject-matter jurisdiction exists on the basis of

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diversity of citizenship.

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Defendants are therefore ordered to show cause why this matter should not be dismissed

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for lack of subject-matter jurisdiction. A response to this order to show cause is due July 5, 2017.

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Defendants’ response requires evidence, via a declaration or otherwise, that all of the partners of

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the limited partnership are diverse in citizenship from the Defendants (including all of the

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owners/members of the LLC). Failure to timely provide such evidence will result in remand to the

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state court for lack of subject-matter jurisdiction.

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IT IS SO ORDERED.
Dated: 6/27/2017

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HOWARD R. LLOYD
United States Magistrate Judge

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United States District Court
Northern District of California

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