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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1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 11 EVANSTON INSURANCE COMPANY, 12 13 14 15 16 17 18 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. 19 20 On April 7, 2017, Plaintiff Evanston Insurance Company brought this claim for 21 declaratory relief against Defendants Bachman Flats, LLC and Bachman Flats 22 Homeowners Association (“BFHOA”). (ECF No. 1, “Compl.”) According to the 23 Complaint, Defendant Bachman Flats, LLC is a California LLC, while Defendant 24 BFHOA is a California nonprofit corporation. Id. ¶¶ 2–3. Evanston invokes diversity 25 jurisdiction under 28 U.S.C. § 1332. 26 “In civil cases, subject matter jurisdiction is generally conferred upon federal 27 district courts either through diversity jurisdiction, 28 U.S.C. § 1332, or federal 28 question jurisdiction, 28 U.S.C. § 1331.” Peralta v. Hispanic Bus. Inc., 419 F.3d 1064, –1– 17cv712 1 1068 (9th Cir. 2005). To invoke a district court’s diversity jurisdiction, there must be 2 complete diversity of citizenship between the parties and the amount in controversy 3 must exceed $75,000. See Strawbridge v. Curtiss, 7 U.S. (3 Cranch) 267 (1806); 28 4 U.S.C § 1332(a). Complete diversity exists when “the citizenship of each plaintiff is 5 diverse from the citizenship of each defendant.” Caterpillar Inc. v. Lewis, 519 U.S. 6 61, 68 (1996). The party seeking to invoke diversity jurisdiction has the burden of 7 both pleading and proving such jurisdiction. NewGen, LLC v. Safe Cig, LLC, 840 F.3d 8 606, 613–14 (9th Cir. 2016) (citation omitted). 9 Here, Plaintiff alleges that Bachman Flats, LLC “is a limited liability company 10 organized and existing under the laws of the State of California with its principal place 11 of business in San Diego County, California.” (Compl. ¶ 2.) This allegation is 12 insufficient to allege diversity jurisdiction. For purposes of diversity jurisdiction, “an 13 LLC is a citizen of every state of which its owners/members are citizens.” Johnson v. 14 Columbia Props. Anchorage, LP, 437 F.3d 894, 899 (9th Cir. 2006). Here, Plaintiff 15 alleges the state in which Defendant Bachman Flats, LLC was formed and does 16 business, but makes no allegations regarding the citizenship of the LLC’s constituent 17 members. Therefore, Plaintiff has not sufficiently pled complete diversity, and the 18 Court lacks subject matter jurisdiction over this case. 19 For these reasons, the Court DISMISSES Plaintiff’s Complaint with leave to 20 amend. Plaintiff may file an Amended Complaint properly alleging the citizenship of 21 Bachman Flats, LLC no later than April 17, 2017. 22 IT IS SO ORDERED. 23 24 DATED: April 10, 2017 25 26 27 28 –2– 17cv712

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