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)

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