Tradin Organics USA LLC v. The Ocean Bazar LLC et al

Filing 5

ORDER FOR PLAINTIFF to Show Cause Establishing Diversity Jurisdiction. Re: ECF 1 . Plaintiff's response in writing is due by 9/26/2024. Signed by Judge Nathanael M. Cousins on 8/29/2024. (lmh, COURT STAFF) (Filed on 8/29/2024)

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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TRADIN ORGANICS USA LLC,

United States District Court
Northern District of California

Plaintiff,
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v.
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THE OCEAN BAZAR LLC, et al.,

Case No. 24-cv-06087-NC
ORDER FOR PLAINTIFF TO
SHOW CAUSE ESTABLISHING
DIVERSITY JURISDICTION
Re: ECF 1

Defendants.
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Plaintiff Tradin Organics USA LLC filed a complaint against Defendants The

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Ocean Bazar LLC and SAF USA Co. on August 28, 2024. ECF 1. The complaint alleges

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common law claims arising out of alleged contracts between Plaintiff and each Defendant.

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Because federal courts are courts of limited jurisdiction, a plaintiff must adequately

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allege that a court has subject matter jurisdiction to hear their case. To do so, a complaint

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must meet the requirements for either (1) federal question jurisdiction or (2) diversity

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jurisdiction. 28 U.S.C. §§ 1331, 1332. Diversity jurisdiction requires that parties are

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citizens of different states and the amount in controversy exceeds $75,000. 28 U.S.C. §

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1332(a). For purposes of diversity jurisdiction, “a corporation is a citizen only of (1) the

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state where its principal place of business is located, and (2) the state in which it is

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incorporated.” Johnson v. Columbia Props. Anchorage, LP, 437 F.3d 894, 899; 28 U.S.C.

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§ 1332(c)(1). In contrast, “an LLC is a citizen of every state of which its owners/members

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are citizens.” Id.
Here, the complaint alleges subject matter jurisdiction based on diversity, and

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alleges the state of incorporation and principal place of business for each party. ECF 1 ¶¶

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1, 3, 5, 8. However, Tradin and Ocean Bazar are both LLCs, whose citizenship depends

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on that of each of its members. Because the complaint does not include information on the

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citizenship of each LLC’s members, Plaintiff is ordered to show cause in writing by

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September 26, 2024, providing sufficient information to establish diversity jurisdiction.

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IT IS SO ORDERED.

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United States District Court
Northern District of California

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Dated: August 29, 2024

_____________________________________
NATHANAEL M. COUSINS
United States Magistrate Judge

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