Evanston Insurance Company v. Bachman Flats, LLC et al

Filing 4

ORDER DISMISSING CASE. Court dismisses Plaintiff's Complaint with leave to amend. Plaintiff may file an Amended Complaint properly alleging the citizenship of Bachman Flats, LLC by 4/17/2017. Signed by Judge Cynthia Bashant on 4/10/2017. (jah)

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UNITED STATES DISTRICT COURT

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SOUTHERN DISTRICT OF CALIFORNIA

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EVANSTON INSURANCE
COMPANY,

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Case No. 17-cv-00712-BAS-RBB
Plaintiff,

ORDER DISMISSING
COMPLAINT WITHOUT
PREJUDICE

v.
BACHMAN FLATS, LLC, a
California limited liability company,
and BACHMAN FLATS
HOMEOWNERS ASSOCIATION, a
California non-profit mutual benefit
corporation,
Defendants.

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On April 7, 2017, Plaintiff Evanston Insurance Company brought this claim for

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declaratory relief against Defendants Bachman Flats, LLC and Bachman Flats

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Homeowners Association (“BFHOA”). (ECF No. 1, “Compl.”) According to the

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Complaint, Defendant Bachman Flats, LLC is a California LLC, while Defendant

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BFHOA is a California nonprofit corporation. Id. ¶¶ 2–3. Evanston invokes diversity

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jurisdiction under 28 U.S.C. § 1332.

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“In civil cases, subject matter jurisdiction is generally conferred upon federal

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district courts either through diversity jurisdiction, 28 U.S.C. § 1332, or federal

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question jurisdiction, 28 U.S.C. § 1331.” Peralta v. Hispanic Bus. Inc., 419 F.3d 1064,
–1–

17cv712

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1068 (9th Cir. 2005). To invoke a district court’s diversity jurisdiction, there must be

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complete diversity of citizenship between the parties and the amount in controversy

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must exceed $75,000. See Strawbridge v. Curtiss, 7 U.S. (3 Cranch) 267 (1806); 28

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U.S.C § 1332(a). Complete diversity exists when “the citizenship of each plaintiff is

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diverse from the citizenship of each defendant.” Caterpillar Inc. v. Lewis, 519 U.S.

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61, 68 (1996). The party seeking to invoke diversity jurisdiction has the burden of

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both pleading and proving such jurisdiction. NewGen, LLC v. Safe Cig, LLC, 840 F.3d

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606, 613–14 (9th Cir. 2016) (citation omitted).

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Here, Plaintiff alleges that Bachman Flats, LLC “is a limited liability company

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organized and existing under the laws of the State of California with its principal place

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of business in San Diego County, California.” (Compl. ¶ 2.) This allegation is

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insufficient to allege diversity jurisdiction. For purposes of diversity jurisdiction, “an

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LLC is a citizen of every state of which its owners/members are citizens.” Johnson v.

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Columbia Props. Anchorage, LP, 437 F.3d 894, 899 (9th Cir. 2006). Here, Plaintiff

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alleges the state in which Defendant Bachman Flats, LLC was formed and does

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business, but makes no allegations regarding the citizenship of the LLC’s constituent

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members. Therefore, Plaintiff has not sufficiently pled complete diversity, and the

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Court lacks subject matter jurisdiction over this case.

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For these reasons, the Court DISMISSES Plaintiff’s Complaint with leave to

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amend. Plaintiff may file an Amended Complaint properly alleging the citizenship of

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Bachman Flats, LLC no later than April 17, 2017.

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IT IS SO ORDERED.

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DATED: April 10, 2017

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–2–

17cv712