Cardenas v. Caliber Home Loans, Inc. et al

Filing 5

ORDER TO SHOW CAUSE RE SUBJECT MATTER JURISDICTION. Show Cause Response due by 8/14/2017. Signed by Magistrate Judge Howard R. Lloyd on 8/4/2017. (hrllc2S, COURT STAFF) (Filed on 8/4/2017)

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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SAN JOSE DIVISION

United States District Court
Northern District of California

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IRENE CARDENAS,
Plaintiff,

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Case No.5:17-cv-04382-HRL
ORDER TO SHOW CAUSE RE
SUBJECT MATTER JURISDICTION

v.
CALIBER HOME LOANS, INC., et al.,
Defendants.

Defendants Rushmore Loan Management Services, LLC (Rushmore) and U.S. Bank

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National Association (as trustee for RMAC Trust Series 2016-CTT) removed this action here on

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August 2, 2017, asserting diversity jurisdiction, 28 U.S.C. § 1332. The notice of removal asserts,

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among other things, that Rushmore “is headquartered in and a resident of Delaware,” and that

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defendant Summit Management Company, LLC “was and is incorporated in Delaware with its

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headquarters in Texas.” (Dkt. 1, Notice of Removal ¶¶ 6, 9). The notice goes on to conclude that

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complete diversity exists because “Plaintiffs reside in California; and the Defendants in this

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action, are headquartered in or residents of Delaware.” (Id. ¶ 10).

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For purposes of diversity jurisdiction, LLCs are treated like partnerships. Johnson v.

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Columbia Properties Anchorage, LP, 437 F.3d 894, 899 (9th Cir. 2006). Thus, “like a partnership,

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an LLC is a citizen of every state of which its owners/members are citizens.” Id. Defendants’

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notice of removal does not identify the citizenship of all of the owners/members of Rushmore or

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Summit Management Company, LLC. Thus, the court cannot determine whether subject-matter

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jurisdiction exists on the basis of 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 August 14,

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2017. Defendants’ response requires evidence, via a declaration or otherwise, that all of the

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owners/members of the LLCs are diverse in citizenship from plaintiff. Failure to timely provide

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such evidence will result in remand to the state court for lack of subject matter jurisdiction.

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SO ORDERED.

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Dated: August 4, 2017

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United States District Court
Northern District of California

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HOWARD R. LLOYD
United States Magistrate Judge

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5:17-cv-04382-HRL Notice has been electronically mailed to:

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Clarisse Jien-Yee Chung

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Michael James Yesk

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Peter James Van Zandt [e-mail], [e-mail],
[e-mail]

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[e-mail]

[e-mail], [e-mail]

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United States District Court
Northern District of California

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