BMN Enterprises, LLC et al. v. Proove Biosciences, Inc.

Filing 6

ORDER REGARDING SUBJECT MATTER JURISDICTION 1 . Signed by JUDGE DERRICK K. WATSON on 7/13/2016. - Plaintiffs are directed to identify all of the owners and/or members of BMN Enterprises, LLC and to specify their citizenship by Augu st 12, 2016. If any of the members of BMN Enterprises, LLC are themselves LLCs and/or unincorporated associations, Plaintiffs shall identify those entities and specify their citizenship as well. If Plaintiffs fail to respond to this Order by August 12, 2016, the court will find that Plaintiffs have not carried their burden of establishing this court's jurisdiction. (ecs, )CERTIFICATE OF SERVICEParticipants registered to receive electronic notifications received this document electronically at the e-mail address listed on the Notice of Electronic Filing (NEF). Participants not registered to receive electronic notifications were served by first class mail on the date of this docket entry

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF HAWAI‘I

CIVIL NO. 16-00386 DKW-KJM

BMN ENTERPRISES, LLC, and
BOKI, INC.,
Plaintiffs,

ORDER REGARDING SUBJECT
MATTER JURISDICTION

vs.
PROOVE BIOSCIENCES, INC.,
Defendant.

ORDER REGARDING SUBJECT MATTER JURISDICTION
On July 11, 2016, Plaintiffs BMN Enterprises, LLC and Boki, Inc., filed this
action asserting subject matter jurisdiction based solely upon diversity of
citizenship, 28 U.S.C. § 1332. See Complaint ¶ 5. Section 1332(a)(1) provides
that “the district courts shall have original jurisdiction of all civil actions where the
matter in controversy exceeds the sum or value of $75,000, exclusive of interest and
costs, and is between . . . citizens of different States.” In order to satisfy the
requirements of Section 1332, there must be complete diversity of citizenship
between the opposing parties -- in other words, all of the plaintiffs must be citizens
of states different than those of all of the defendants. Exxon Mobil Corp. v.
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Allapattah Servs., Inc., 545 U.S. 546, 553 (2005) (“[Section] 1332 . . . requir[es]
complete diversity: In a case with multiple plaintiffs and multiple defendants, the
presence in the action of a single plaintiff from the same [s]tate as a single defendant
deprives the district court of original diversity jurisdiction over the entire action.”);
Kuntz v. Lamar Corp., 385 F.3d 1177, 1181 (9th Cir. 2004). The court may address
subject matter jurisdiction sua sponte. Fiedler v. Clark, 714 F.2d 77, 78 (9th Cir.
1983); Fed. R. Civ. P. 12(h)(3).
Plaintiff BMN Enterprises, LLC is a limited liability corporation. “[A]n
LLC is a citizen of every state of which its owners/members are citizens.” Johnson
v. Columbia Props. Anchorage, LP, 437 F.3d 894, 899 (9th Cir. 2006). Thus, to
establish diversity jurisdiction, the citizenship of all owners and/or members of an
LLC must be alleged. Id. The Complaint, however, does not indicate the identity
or citizenship of all the owners or members of BMN Enterprises, LLC, nor if any of
the owners or members are themselves LLCs and/or unincorporated associations.
The Complaint alleges only that BMN Enterprises, LLC “is a Hawaii, corporation.”
Complaint ¶ 2. Without additional information regarding the LLC’s members, the
court is unable to determine whether diversity jurisdiction exists.
Plaintiffs bear the burden of establishing subject matter jurisdiction.
Kokkonen v. Guardian Life Ins. Co., 511 U.S. 375, 377 (1994). At the pleading

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stage, Plaintiffs must allege sufficient facts to show a proper basis for the court to
assert subject matter jurisdiction over the action. Johnson, 437 F.3d at 899; Fed. R.
Civ. P. 8(a)(1).
Accordingly, Plaintiffs are directed to identify all of the owners and/or
members of BMN Enterprises, LLC and to specify their citizenship by August 12,
2016. If any of the members of BMN Enterprises, LLC are themselves LLCs
and/or unincorporated associations, Plaintiffs shall identify those entities and
specify their citizenship as well. If Plaintiffs fail to respond to this Order by
August 12, 2016, the court will find that Plaintiffs have not carried their burden of
establishing this court’s jurisdiction.
IT IS SO ORDERED.
DATED:

July 13, 2016 at Honolulu, Hawai‘i.

BMN Enters., LLC et al. v. Proove Biosciences, Inc.; Civil No. 16-00386
DKW-KJM; ORDER REGARDING SUBJECT MATTER JURISDICTION

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