Carestream Health, Inc. v. Hawaii Diagnostic Radiology Services, LLC

Filing 8

ORDER REGARDING SUBJECT MATTER JURISDICTION. Re: 1 Complaint filed by Carestream Health, Inc. Signed by JUDGE DERRICK K. WATSON on 11/15/2016. - Plaintiff is directed to file, by November 29, 2016, a juris dictional statement identifying the citizenship of all owners/members of Hawaii Diagnostic Radiology Services, LLC. If any members of the defendant LLC are themselves LLCs or LPs, Plaintiff shall identify those LLCs and LPs and specify their citizen ship as well. If the information described above is not available to Plaintiff upon the exercise of due diligence, then Plaintiff shall so inform the Court by November 29, 2016. (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

CARESTREAM HEALTH, INC.,

CIVIL NO. 16-00609 DKW-KJM

Plaintiff,
ORDER REGARDING SUBJECT
MATTER JURISDICTION

vs.
HAWAII DIAGNOSTIC
RADIOLOGY SERVICES, LLC,
Defendant.

ORDER REGARDING SUBJECT MATTER JURISDICTION
On November 14, 2016, Plaintiff Carestream Health, Inc. filed a Complaint
against Hawaii Diagnostic Radiology Services, LLC, asserting subject matter
jurisdiction based solely upon diversity of citizenship under 28 U.S.C. § 1332. See
Complaint ¶¶ 2-3. 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. Exxon Mobil
Corp. v. 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 sole named defendant is alleged to be a limited liability company
(“LLC”). “[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
owners or members of Hawaii Diagnostic Radiology Services, LLC, nor if any of
the owners or members are themselves LLCs and/or unincorporated associations.
Without such additional information regarding each LLC member, the Court is
unable to determine whether diversity jurisdiction exists.
Plaintiff bears the burden of establishing subject matter jurisdiction.
Kokkonen v. Guardian Life Ins. Co., 511 U.S. 375, 377 (1994). At the pleading
stage, Plaintiff 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). 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).

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Accordingly, Plaintiff is directed to file, by November 29, 2016, a
jurisdictional statement identifying the citizenship of all owners/members of Hawaii
Diagnostic Radiology Services, LLC. If any members of the defendant LLC are
themselves LLCs or LPs, Plaintiff shall identify those LLCs and LPs and specify
their citizenship as well. If the information described above is not available to
Plaintiff upon the exercise of due diligence, then Plaintiff shall so inform the Court
by November 29, 2016.
IT IS SO ORDERED.
Dated: November 15, 2016 at Honolulu, Hawai‘i.

Carestream Health, Inc. v. HDRS, LLC; Civil No. 16-00609 DKW-KJM; ORDER
REGARDING SUBJECT MATTER JURISDICTION

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