Jenkins et al v. Burkey et al

Filing 10

MEMORANDUM AND ORDER, re: jurisdiction defect. Amended complaint due by September 12, 2016. Signed by Judge J. Phil Gilbert on 8/29/2016. (jdh)

IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF ILLINOIS
SCOTT JENKINS and
RHONDA STEPHANIE ALEXANDROPOULOS,
Plaintiff,
v.

Case No. 16-792 JPG/SCW

BRUCE BURKEY, et al.,
Defendants.

MEMORANDUM AND ORDER
In light of Seventh Circuit Court of Appeals admonitions, see Foster v. Hill, 497
F.3d 695, 696-97 (7th Cir. 2007), the Court has undertaken a rigorous initial review of
pleadings to ensure that jurisdiction has been properly pled. See Hertz Corp. v. Friend,
559 U.S. 77, 94 (2010) (noting courts’ “independent obligation to determine whether
subject-matter jurisdiction exists, even when no party challenges it”). The Court has noted
the following defects in the jurisdictional allegations of the Complaint (Doc. 1) filed by
plaintiffs Scott Jenkins and Rhonda Stephanie Alexandropoulos:
Failure to allege the citizenship of each member of an unincorporated association.
To determine if complete diversity exists, the Court must examine the citizenship of
each member of a limited liability partnership. The citizenship of every investor
counts. See, e.g., Carden v. Arkoma Associates, 494 U.S. 185, 110 S.Ct. 1015, 108
L.Ed.2d 157 (1990) (limited partnership); Cosgrove v. Bartolotta, 150 F.3d 729 (7th
Cir.1998) (limited liability company); Guaranty National Title Co. v. J.E.G.
Associates, 101 F.3d 57 (7th Cir.1996) (essential to trace the citizenship of investors
through all levels, if, say, one LP invests in another). If even one investor in an LP or
LLC has the same citizenship as any party on the other side of the litigation, complete
diversity is missing and the suit must be dismissed. See, e.g., Indiana Gas Co. v.
Home Insurance Co., 141 F.3d 314, rehearing denied, 141 F.3d 320 (7th Cir.1998)
(ordering a suit against an insuring syndicate at Lloyd's of London dismissed for this
reason). But cf. Hoagland v. Sandberg, Phoenix & von Gontard, P.C., 385 F.3d 737
(7th Cir.2004) (a “professional corporation” is a corporation even though it has many
attributes of a partnership). White Pearl Inversiones S.A. (Uruguay) v. Cemusa, Inc.,
647 F.3d 684, 686 (7th Cir. 2011)

Plaintiffs list Joice Bass and Jennifer Hostetler as members of Lewis Roca
Rothgerber LLP and their citizenship and state that Lewis Roca Rothgerber LLP lists no
member on its website that resides east of the Colorado. This is not enough. Plaintiffs must
allege each member of Lewis Roca Rothgerber LLP and their citizenship.
The Court hereby ORDERS plaintiffs Scott Jenkins and Rhonda Stephanie
Alexandropoulos shall have up to and including September 12, 2016 to amend the faulty
pleading to correct the jurisdictional defect. See 28 U.S.C. § 1653. Failure to cure the
noted defect will result in dismissal of this case for lack of subject matter jurisdiction.
Amendment of the faulty pleading to reflect an adequate basis for subject matter
jurisdiction will satisfy this order. Plaintiffs are directed to consult Local Rule 15.1
regarding amended pleadings and need not seek leave of Court to file such amended
pleading.
IT IS SO ORDERED.
DATED: August 29, 2016
s/J. Phil Gilbert
J. PHIL GILBERT
DISTRICT JUDGE