Lai v. Allstate Insurance Corporation
Filing
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ORDER TO SHOW CAUSE. Show Cause Response due by 12/4/2017. Signed by Judge Edward J. Davila on 11/28/2017. (ejdlc1S, COURT STAFF) (Filed on 11/28/2017)
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UNITED STATES DISTRICT COURT
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NORTHERN DISTRICT OF CALIFORNIA
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SAN JOSE DIVISION
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SHARON LAI,
Case No. 5:17-cv-05125-EJD
Plaintiff,
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ORDER TO SHOW CAUSE
v.
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ALLSTATE INSURANCE
CORPORATION,
Defendant.
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Plaintiff Sharon Lai commenced the instant action directly in this court against Defendant
United States District Court
Northern District of California
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Allstate Insurance Corporation and asserts claims arising only under California state law. As is its
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obligation, the court has reviewed the Complaint to determine whether Plaintiff included
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allegations sufficient to establish federal jurisdiction and has been guided by the principles that
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govern such an inquiry. See Henderson v. Shinseki, 562 U.S. 428, 434 (2011) (“[F]ederal courts
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have an independent obligation to ensure that they do not exceed the scope of their jurisdiction,
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and therefore they must raise and decide jurisdictional questions that the parties either overlook or
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elect not to press.”); see also Mashiri v. Dep’t of Educ., 724 F.3d 1028, 1031 (9th Cir. 2013)
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(“[F]ederal courts have a continuing, independent obligation to determine whether subject matter
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jurisdiction exists.”). The court has also reviewed the record of this action to determine whether
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Plaintiff has accomplished service consistent with Federal Rule of Civil Procedure 4. In short,
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Plaintiff has neither established subject matter jurisdiction nor service of process on Defendant.
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I.
SUBJECT MATTER JURISDICTION
To begin, the court is mindful that, in contrast to state courts, “[f]ederal courts are courts of
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limited jurisdiction.” Kokkonen v. Guardian Life Ins. Co of Am., 511 U.S. 375, 377 (1994).
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Federal jurisdiction can generally arise in two ways: (1) from the presence of a federal question, or
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(2) from diversity of the parties. 28 U.S.C. §§ 1331, 1332.
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Since the Complaint does not raise a federal question, subject matter jurisdiction may only
Case No.: 5:17-cv-05125-EJD
ORDER TO SHOW CAUSE
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arise on the basis of diversity under § 1332. For that to occur, “there must be complete diversity
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of citizenship between the parties opposed in interest.” Kuntz v. Lamar Corp., 385 F.3d 1177,
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1181 (9th Cir. 2004). The amount in controversy must also exceed $75,000. Naffe v. Frey, 789
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F.3d 1030, 1039 (9th Cir. 2015). For jurisdictional purposes, individuals are citizens of their
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states of domicile. Kanter v. Warner-Lambert Co., 265 F.3d 853, 857 (9th Cir. 2001) (“The
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natural person’s state citizenship is [] determined by her state of domicile, not her state of
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residence.”). In contrast, “[a] corporation is a citizen of (1) the state under whose laws it is
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organized or incorporated; and (2) the state of its ‘principal place of business.’” Davis v. HSBC
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Bank Nev., N.A., 557 F.3d 1026, 1028 (9th Cir. 2008). “Absent unusual circumstances, a party
seeking to invoke diversity jurisdiction should be able to allege affirmatively the actual citizenship
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United States District Court
Northern District of California
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of the relevant parties” in order to confirm that all parties are diverse. Kanter, 265 F.3d at 857.
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In addition, the court observes that it must look to the Complaint’s jurisdictional
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allegations because “[a] party invoking the federal court’s jurisdiction has the burden of proving
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the actual existence of subject matter jurisdiction.” Thompson v. McCombe, 99 F.3d 352, 353
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(9th Cir. 1996). To that end, Federal Rule of Civil Procedure 8 requires the plaintiff to provide “a
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short and plain statement of the grounds for the court’s jurisdiction.”
Here, Plaintiff alleges she is a California citizen, and that Defendant “is a company doing
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business in the State of California . . . .” Compl., at ¶¶ 1, 2. Although it is not made clear, it
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appears that Plaintiff alleges Defendant is a corporation. If so, missing from the Complaint are
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allegations providing Defendant’s state of incorporation and the location of its principal place of
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business. Such allegations are required to establish subject matter jurisdiction on the basis of
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diversity. See Davis, 557 F.3d at 1028.
Furthermore, there are no allegations confirming the amount in controversy exceeds
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$75,000, which information is also required to establish diversity jurisdiction. See Naffe, 789
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F.3d at 1039.
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II.
SERVICE OF PROCESS
Plaintiff filed the Complaint initiating this action on September 1, 2017. To date, however,
Case No.: 5:17-cv-05125-EJD
ORDER TO SHOW CAUSE
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the docket does not contain a proof of service or waiver of service for Defendant, and Defendant
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has not appeared in this action.
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Rule 4(m) of the Federal Rules of Civil Procedure provides in pertinent part:
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If a defendant is not served within 90 days after the complaint is
filed, the court - on motion or on its own after notice to the plaintiff
- must dismiss the action without prejudice against that defendant or
order that service be made within a specified time. But if the
plaintiff shows good cause for the failure, the court must extend the
time for service for an appropriate period.
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The 90-day period for service provided by Rule 4(m) expires on November 30, 2017.
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III.
ORDER
As indicated, the Complaint does not establish federal jurisdiction. Nor has Plaintiff
United States District Court
Northern District of California
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shown that service of process was accomplished on Defendant. Accordingly, the court issues an
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order to show cause why this action should not be dismissed for lack of jurisdiction or,
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alternatively, for lack of service. If Plaintiff does not, by December 4, 2017, do the following:
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(1) file a written response that demonstrates the basis for this court’s subject matter
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jurisdiction in a manner consistent with the discussion above; and
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(2) file documents to show proof of service of the Summons and Complaint on Defendants
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or otherwise explain in writing why service has not been accomplished in a manner
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establishing good cause under Rule 4(m);
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the court will dismiss this action without prejudice. No hearing will be held on the Order to Show
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Cause unless ordered by the court.
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IT IS SO ORDERED.
Dated: November 28, 2017
______________________________________
EDWARD J. DAVILA
United States District Judge
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Case No.: 5:17-cv-05125-EJD
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