Tervon, LLC et al v. Jani-King of California, Inc. et al
Filing
23
ORDER Remanding Action For Lack Of Subject Matter Jurisdiction. Dfts have failed to meet their burden of establishing the Court's jurisdiction under 28 USC 1332. Court remands this action to San Diego Superior Court for lack of subject matter jurisdiction. Signed by Judge Cynthia Bashant on 9/25/2014. (jah)(Modified on 9/25/2014 - Certified copy of this Order mailed to San Diego Superior Court.)(jah)(jrd)
1
2
3
4
5
6
7
8
9
10
UNITED STATES DISTRICT COURT
11
SOUTHERN DISTRICT OF CALIFORNIA
12
13
Plaintiffs,
14
15
16
17
18
Case No. 14-cv-00367-BAS(JMA)
TERVON, LLC, ET AL.,
ORDER REMANDING ACTION
FOR LACK OF SUBJECT
MATTER JURISDICTION
v.
JANI-KING OF CALIFORNIA, INC.,
ET AL.,
Defendants.
19
20
21
On January 15, 2014, plaintiffs Tervon, LLC, Sunyata Little, Eleanor Little,
22
and Mario Gutierrez (“Plaintiffs”) commenced this action in San Diego Superior
23
Court asserting claims for fraud, breach of contract, breach of implied covenant of
24
good faith and fair dealing, violation of California Business & Professions Code §§
25
17200, et seq., intentional infliction of emotional distress, as well as a claim for
26
declaratory relief. On February 17, 2014, Defendants Jani-King of California and
27
Jani-King International, Inc. removed the matter to federal court based on diversity
28
of citizenship under 28 U.S.C. §§ 1332, 1441, and 1446.
–1–
14-cv-00367
For the following reasons, the Court finds that Defendants’ Notice of
1
2
Removal is deficient and REMANDS this action to the San Diego Superior Court.
3
I.
LEGAL STANDARD
4
“Federal courts are courts of limited jurisdiction.” Kokkonen v. Guardian
5
Life Ins. Co. of Am., 511 U.S. 375, 377 (1994). “They possess only that power
6
authorized by Constitution and statute, which is not to be expanded by judicial
7
decree.” Id. (internal citations omitted). “It is to be presumed that a cause lies
8
outside this limited jurisdiction, and the burden of establishing the contrary rests
9
upon the party asserting jurisdiction.” Id. (internal citations omitted); see also
10
Abrego Abrego v. The Dow Chem. Co., 443 F.3d 676, 684 (9th Cir. 2006).
11
Consistent with the limited jurisdiction of federal courts, the removal statute
12
is strictly construed against removal jurisdiction. Gaus v. Miles, Inc., 980 F.2d
13
564, 566 (9th Cir. 1992); see also Sygenta Crop Prot. v. Henson, 537 U.S. 28, 32
14
(2002); O’Halloran v. Univ. of Wash., 856 F.2d 1375, 1380 (9th Cir. 1988). “The
15
‘strong presumption’ against removal jurisdiction means that the defendant always
16
has the burden of establishing that removal is proper.” Gaus, 980 F.2d at 566
17
(citations omitted); see also Nishimoto v. Federman-Bachrach & Assoc., 903 F.2d
18
709, 712 n.3 (9th Cir. 1990); O’Halloran, 856 F.2d at 1380. “Federal jurisdiction
19
must be rejected if there is any doubt as to the right of removal in the first
20
instance.” Gaus, 980 F.2d at 566.
21
It is well-established that “a district court’s duty to establish subject matter
22
jurisdiction is not contingent upon the parties’ arguments.” See United Investors
23
Life Ins. Co. v. Waddell & Reed Inc., 360 F.3d 960, 966 (9th Cir. 2004). Courts
24
may consider the issue sua sponte. Demery v. Kupperman, 735 F.2d 1139, 1149
25
n.8 (9th Cir. 1984). Indeed, the Supreme Court has emphasized that “district
26
courts have an ‘independent obligation to address subject-matter jurisdiction sua
27
sponte.’” Grupo Dataflux v. Atlas Global Grp., L.P., 541 U.S. 567, 593 (2004)
28
(quoting United States v. S. Cal. Edison Co., 300 F. Supp. 2d 964, 972 (E.D. Cal.
–2–
14-cv-00367
1
2004)).
2
II.
ANALYSIS
3
In order to invoke this Court’s diversity jurisdiction, Defendants must
4
demonstrate there is complete diversity of citizenship between the parties and that
5
the amount in controversy exceeds $75,000. Caterpillar Inc. v. Lewis, 519 U.S. 61,
6
68 (1996); Cohn v. Petsmart, Inc., 281 F.3d 837, 839 (9th Cir. 2002); 28 U.S.C. §
7
1332. “When an action is removed based on diversity, complete diversity must exist
8
at removal.” Gould v. Mut. Life Ins. Co. of New York, 790 F.2d 769, 773 (9th Cir.
9
1986) (citing Miller v. Grgurich, 763 F.2d 372, 373 (9th Cir.1985)). “Federal courts
10
look only to a plaintiff's pleadings to determine removability.” Id. (citing Self v.
11
Gen. Motors Corp., 588 F.2d 655, 657 (9th Cir.1978). “Diversity is generally
12
determined from the face of the complaint.” Id. (citation omitted).
13
Here, Defendants have failed to meet their burden of demonstrating there is
14
complete diversity of citizenship, specifically in regards to Plaintiff Tervon, LLC.
15
The citizenship of a limited liability company (“LLC”) is determined by the
16
citizenship of all of its members. Johnson v. Columbia Properties Anchorage, LP,
17
437 F.3d 894, 899 (9th Cir. 2006). “[A]n LLC is a citizen of every state of which its
18
owners/members are citizens.”
19
members of Tervon, LLC nor alleges their citizenship. (ECF No. 1, Appendix at
20
p.2.) The complaint simply states “Tervon, LLC…is a California limited liability
21
company with its princip[al] place of business in San Diego, California.” (Id.) In
22
their Notice of Removal, Defendants assert that “Plaintiff Tervon, LLC is now, and
23
was at the commencement of this action, a California corporation with its principal
24
place of business in California.” (ECF No. 1 at p. 2 (emphasis added).) Not only
25
does this statement fail to reflect the allegations in the complaint, but it does not
26
sufficiently allege Tervon, LLC’s citizenship. Defendants have therefore failed to
27
satisfy their burden of showing complete diversity between the parties.
28
///
Id.
Plaintiff’s complaint neither identifies the
–3–
14-cv-00367
1
III. CONCLUSION & ORDER
2
Defendants have failed to meet their burden of establishing this Court’s
3
jurisdiction under 28 U.S.C. § 1332. Therefore, this Court REMANDS this action
4
to the San Diego Superior Court for lack of subject matter jurisdiction. See 28
5
U.S.C. § 1447(c) (“If at any time before final judgment it appears that the district
6
court lacks subject matter jurisdiction, the case shall be remanded.”).
7
IT IS SO ORDERED.
8
9
DATED: September 25, 2014
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
–4–
14-cv-00367
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?