Chen et al v. Fusionone Electronic Healthcare Inc. et al

Filing 4

WRITTEN Opinion entered by the Honorable George M. Marovich on 10/23/2012: The Court sua sponte dismisses the complaint for want of jurisdiction. If plaintiffs believe that they can properly allege diversity jurisdiction, then they may file an amended complaint here within 28 days. Otherwise, plaintiffs may file their claims in state court. Mailed notices. (For further details see opinion).(pcs, )

Order Form (01/2005)

United States District Court, Northern District of Illinois
Name of Assigned Judge
or Magistrate Judge

George M. Marovich

CASE NUMBER

12 C 8213

CASE
TITLE

Sitting Judge if Other
than Assigned Judge

DATE

10/23/12

Chen, et.al v. Fusionone Electronic Healthcare, Inc., et.al

DOCKET ENTRY TEXT:

The Court sua sponte dismisses the complaint for want of jurisdiction. If plaintiffs believe that they can
properly allege diversity jurisdiction, then they may file an amended complaint here within 28 days.
Otherwise, plaintiffs may file their claims in state court.

O[ For further details see text below.]

Docketing to mail notices.

STATEMENT
A federal court must always assure itself that it has jurisdiction over a claim before it. Weaver v.
Hollywood Casino-Aurora, Inc., 255 F.3d 379, 381 (7th Cir. 2001). “The party invoking jurisdiction bears
the burden of establishing [jurisdiction] . . . with the manner and degree of evidence required at the
successive stages of the litigation.” Lujan v. Defenders of Life, 504 U.S. 555, 561 (1992). Plaintiffs, who
include no federal claims in their complaint, assert that this Court has diversity jurisdiction over this case.
This Court has jurisdiction over civil actions where the amount in controversy is greater than
$75,000 and is between citizens of different states. 28 U.S.C. § 1332(a)(1). The first problem with plaintiffs’
jurisdictional allegations is that they allege individuals’ residence, rather than their citizenship. “[I]n federal
law citizenship means domicile, not residence.” America’s Best Inns, Inc. v. Best Inns of Abilene, L.P., 980
F.2d 1072, 1074 (7th Cir. 1992) (“We have been told by authority we are powerless to question that when the
parties allege residence but not citizenship, the only proper step is to dismiss the litigation for want of
jurisdiction.”). Plaintiffs have alleged that plaintiff Zhenquan Chen is a resident of Florida, that plaintiff
Young Jin Hong is a resident of Illinois and that plaintiff Jerry Stanley is a resident New Jersey. Plaintiffs
have alleged that defendant Kress M. Stein is a resident of Illinois. Plaintiffs must allege the citizenship of
each of these parties.
The second problem is that plaintiffs have not alleged complete diversity. For more than two
centuries, “the diversity statute has been interpreted to require ‘complete’ diversity of citizenship (meaning
that none of the parties on either side of the litigation may be a citizen of a state of which a party on the other
side is a citizen).” Howell v. Tribune Entertainment Co., 106 F.3d 215, 217 (7th Cir. 1997). Plaintiffs allege
that defendant Fusionone Electronics Healthcare, Inc. is a Delaware corporation with its principal place of
business in Illinois. It is, therefore, a citizen of Illinois and Delaware. 28 U.S.C. § 1332(c)(1). Plaintiffs
allege that defendant Fusionone Inc. is an Illinois corporation with its principal place of business in Illinois.
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STATEMENT
It is, therefore, a citizen of Illinois. Although it is not clear from the complaint what states plaintiffs are
citizens of, if any is a citizen of either Delaware or Illinois, the Court would lack diversity jurisdiction.
Plaintiffs have failed to allege adequately that this Court has diversity jurisdiction over this case.
Accordingly, this case is dismissed for want of jurisdiction. Because it is not clear whether the defect can be
cured, the Court will grant plaintiffs 28 days to file an amended complaint if they think they can adequately
allege diversity jurisdiction. Alternatively, plaintiffs may file their claims in state court.

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