Reynoso v. Gateway Mortgage Group, LLC

Filing 5

ORDER TO SHOW CAUSE re Subject Matter Jurisdiction. Show Cause Response due by 11/27/2017. Signed by Magistrate Judge Howard R. Lloyd on 11/17/2017. (hrllc2S, COURT STAFF) (Filed on 11/17/2017)

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1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 NORTHERN DISTRICT OF CALIFORNIA 10 SAN JOSE DIVISION United States District Court Northern District of California 11 12 GUILLE REYNOSO, Plaintiff, 13 14 15 16 Case No.5:17-cv-06616-HRL ORDER TO SHOW CAUSE RE SUBJECT MATTER JURISDICTION v. GATEWAY MORTGAGE GROUP, LLC, Defendant. 17 18 Defendant Gateway Mortgage Group, LLC (Gateway) removed this action here on 19 November 16, 2017, asserting diversity jurisdiction, 28 U.S.C. § 1332. The notice of removal 20 asserts that “Gateway is incorporated in Oklahoma and has its principal place of business in Jenks, 21 Oklahoma, and is, therefore, a citizen of Oklahoma for diversity purposes.” (Dkt. 1, Notice of 22 Removal ¶ 17). The notice goes on to conclude that “[b]ecause Plaintiff is a citizen of California 23 and Gateway is a citizen of Oklahoma, complete diversity exists between the parties.” (Id. ¶ 19). 24 For purposes of diversity jurisdiction, LLCs are treated like partnerships. Johnson v. 25 Columbia Properties Anchorage, LP, 437 F.3d 894, 899 (9th Cir. 2006). Thus, “like a partnership, 26 an LLC is a citizen of every state of which its owners/members are citizens.” Id. Defendant’s 27 notice of removal does not identify the citizenship of all of the owners/members of Gateway. 28 Thus, the court cannot determine whether subject-matter jurisdiction exists on the basis of 1 diversity of citizenship. 2 Gateway is therefore ordered to show cause why this matter should not be dismissed for 3 lack of subject matter jurisdiction. A response to this order to show cause is due November 27, 4 2017. Defendant’s response requires evidence, via a declaration or otherwise, that all of the 5 owners/members of the LLCs are diverse in citizenship from plaintiff. Failure to timely provide 6 such evidence will result in remand to the state court for lack of subject matter jurisdiction. 7 8 SO ORDERED. Dated: November 17, 2017 9 10 HOWARD R. LLOYD United States Magistrate Judge 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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