Peterman Investments LLC v. Auto Owners Insuance Company

Filing 8

ORDER TO SHOW CAUSE: returnable by Defendant. SHOW CAUSE why this case should not be remanded from where it was removed due to this Courts lack of subject matter jurisdiction. Show Cause Response due by 10/27/2017. ORDERED by Judge Raymond P. Moore on 10/17/2017. (cthom, )

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLORADO
Judge Raymond P. Moore
Civil Action No. 1:17-cv-02475-RM
PETERMAN INVESTMENTS LLC, a Colorado corporation,
Plaintiff,
v.
AUTO-OWNERS INSURANCE COMPANY, a Michigan corporation,
Defendant.
______________________________________________________________________________
ORDER
______________________________________________________________________________
This matter is before the Court sua sponte upon consideration of the Notice of Removal
(ECF No. 1). Defendant removed this action from the District Court, Adams County, Colorado
alleging diversity jurisdiction. Diversity jurisdiction requires that the amount in controversy
exceeds $75,000.00 and diversity of citizenship between the parties. 28 U.S.C. § 1332. Here,
Defendant alleges the parties are diverse based on the following: (1) Plaintiff, an LLC, is a
citizen of the State of Colorado as that is where it is incorporated and has its principal place of
business (ECF No. 1, ¶6); and (2) Defendant, a corporation, is a citizen of the State of Michigan
as that is where it is incorporated and has its principal place of business (ECF No. 1, ¶6.) Such
allegations, however, are insufficient. Specifically, Plaintiff is a not a corporation. Instead,
Plaintiff is an LLC, and “an LLC, as an unincorporated association, takes the citizenship of all its
members.” Siloam Springs Hotel, L.L.C. v. Century Sur. Co., 781 F.3d 1233, 1234 (10th Cir.
2015) (citations omitted). But, Defendant fails to allege the identity or citizenship of any of
Plaintiff’s members. And, its supporting Exhibit E also does not disclose this information.

Accordingly, the Court is unable to determine the citizenship of the LLC and that complete
diversity of citizenship exists.
It is therefore ORDERED that on or before Friday, October 27, 2017, Defendant shall
SHOW CAUSE why this case should not be remanded from where it was removed due to this
Court’s lack of subject matter jurisdiction.
DATED this 17th day of October, 2017.
BY THE COURT:

____________________________________
RAYMOND P. MOORE
United States District Judge

2