Palmer Steel Supplies, Inc. v. AIM Steel International, Inc. et al

Filing 22

ORDER that Plaintiff Palmer Steel Supplies, Inc. must file, on or before May 20, 2016, and amended complaint that adequately alleges the citizenship of the parties. Signed by Judge William S. Duffey, Jr on 5/9/2016. (anc)

any party.” Arbaugh v. Y&H Corp., 546 U.S. 500, 501 (2006). The Eleventh
Circuit consistently has held that “a court should inquire into whether it has subject
matter jurisdiction at the earliest possible stage in the proceedings. Indeed, it is
well settled that a federal court is obligated to inquire into subject matter
jurisdiction sua sponte whenever it may be lacking.” Univ. of S. Ala. v. Am.
Tobacco Co., 168 F.3d 405, 410 (11th Cir. 1999). In this case Plaintiff’s
Complaint raises only questions of state law and the Court only could have
diversity jurisdiction over this matter.
Diversity jurisdiction exists where the amount in controversy exceeds
$75,000 and the suit is between citizens of different states. 28 U.S.C § 1332(a).
“Diversity jurisdiction, as a general rule, requires complete diversity—every
plaintiff must be diverse from every defendant.” Palmer Hosp. Auth. of Randolph
Cty., 22 F.3d 1559, 1564 (11th Cir. 1994). “Citizenship for diversity purposes is
determined at the time the suit is filed.” MacGinnitie v. Hobbs Grp., LLC,
420 F.3d 1234, 1239 (11th Cir. 2005). “The burden to show the jurisdictional fact
of diversity of citizenship [is] on the . . . plaintiff.” King v. Cessna Aircraft Co.,
505 F.3d 1160, 1171 (11th Cir. 2007) (alteration and omission in original) (quoting
Slaughter v. Toye Bros. Yellow Cab Co., 359 F.2d 954, 956 (5th Cir. 1966)). A
limited liability company, unlike a corporation, is a citizen of any state of which

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one of its members is a citizen, not of the state where the company was formed or
has it principal office. See Rolling Greens MHP, L.P. v. Comcast SCH Holdings
L.L.C., 374 F.3d 1020, 1022 (11th Cir. 2004). “To sufficiently allege the
citizenships of these unincorporated business entities, a party must list the
citizenships of all the members of the limited liability company . . . .” Id.
The Complaint states that the LLC is “a Delaware corporation with its
principal place of business located at 820 Shades Creek Parkway, Birmingham,
Alabama 35209.” (Compl. ¶ 4). This allegation is insufficient to allege the LLC’s
citizenship, because a limited liability company, unlike a corporation, is a citizen
of any state of which one of its members is a citizen, not of the state where the
company was formed or has it principal office. See Rolling Greens, 374 F.3d at
1022. “To sufficiently allege the citizenships of these unincorporated business
entities, a party must list the citizenships of all the members of the limited liability
company . . . .” Id.
To determine whether the Court has jurisdiction over this action, the
Complaint must allege more specific information regarding the LLC’s citizenship.
Accordingly, Plaintiff is required to file an amended complaint properly alleging
the LLC’s citizenship. The Court notes that it is required to dismiss this action
unless Plaintiff provides the required supplement alleging sufficient facts to show

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the Court’s jurisdiction. See id. at 1268-69 (holding that the district court must
dismiss an action for lack of subject matter jurisdiction unless the pleadings or
record evidence establishes jurisdiction).
For the foregoing reasons,
IT IS HEREBY ORDERED that Plaintiff Palmer Steel Supplies, Inc. must
file, on or before May 20, 2016, and amended complaint that adequately alleges
the citizenship of the parties.

SO ORDERED this 9th day of May, 2016.

_______________________________
WILLIAM S. DUFFEY, JR.
UNITED STATES DISTRICT JUDGE

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