HK Metal Recycling Holding LTD et al v. Gilbert et al
Filing
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OPINION AND ORDER directing Dfts to file an amended Notice of Removal on/bf 9/29/2011, properly alleging on personal knowledge the membership of HKRR LLC and the citizenship of Third Party Dft Hughes Chan a/k/a Chan Yu. Signed by Magistrate Judge Roger B Cosbey on 9/8/2011. (lns) Modified on 9/8/2011 (lns).
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF INDIANA
FORT WAYNE DIVISION
HK METAL RECYCLING HOLDING LTD; and, )
HKRR, LLC,
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Plaintiffs,
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v.
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STEVEN GILBERT; and
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GLOBAL RECYCLING, INC.,
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Defendants.
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_________________________________________ )
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STEVEN GILBERT; and
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GLOBAL RECYCLING, INC.,
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Counter-claim Plaintiffs/
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Third Party Plaintiffs,
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v.
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HK METAL RECYCLING HOLDING LTD,
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HKRR, LLC, and
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Counter-claim Defendants,
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v.
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HUGHES CHAN A/K/A CHAN YU
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Third Party Defendant.
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Case No: 1:11-CV-298
OPINION AND ORDER
This case was removed to this Court from the Allen Superior Court by
Defendants/Counter-claim and Third Party Plaintiffs, Steven Gilbert and Global Recycling, Inc.,
based on diversity jurisdiction pursuant to 28 U.S.C. § 1332(a). (Docket # 3.) The Notice of
Removal alleges that, upon information and belief, Third Party Defendant Hughes Chan a/k/a
Chan Yu is the sole member of HKRR, LLC. (Notice of Removal ¶ 5.) The Notice of Removal
further alleges that, upon information and belief, Third Party Defendant Hughes Chan is a citizen
of Hong Kong. (Notice of Removal ¶ 6.)
Defendant’s jurisdictional allegations, however, inadequately set forth the membership of
HKRR, LLC, and Chan’s citizenship. It is well-settled that “[a]llegations of federal subject
matter jurisdiction may not be made on the basis of information and belief, only personal
knowledge.” Yount v. Shashek, 472 F. Supp. 2d 1055, 1057 n.1 (S.D. Ill. 2006) (citing Am.’s Best
Inns, Inc. v. Best Inns of Abilene, L.P., 980 F.2d 1072, 1074 (7th Cir. 1992)); Ferolie Corp. v.
Advantage Sales & Mktg., LLC, No. 04 C 5425, 2004 WL 2433114, at *1 (N.D. Ill. Oct. 28,
2004); Hayes v. Bass Pro Outdoor World, LLC, No. 02 C 9106, 2003 WL 187411, at *2 (N.D.
Ill. Jan. 21, 2003); Multi-M Int’l, Inc. v. Paige Med. Supply Co., 142 F.R.D. 150, 152 (N.D. Ill.
1992). The membership of HKRR, LLC, is critical because a limited liability company’s
citizenship “for purposes of . . . diversity jurisdiction is the citizenship of its members.”
Cosgrove v. Bartolotta, 150 F.3d 729, 731 (7th Cir. 1998). As a member of HKRR, LLC,
Defendants must properly allege Chan’s citizenship as well. Therefore, the Court must be
advised of all the members of HKRR, LLC, and their citizenship to ensure that none of its
members share a common citizenship with the other parties. Hicklin Eng’g, L.C. v. Bartell, 439
F.3d 346, 347 (7th Cir. 2006). Moreover, citizenship must be “traced through multiple levels”
for those members of the limited liability company who are a partnership or a limited liability
company, as anything less can result in a dismissal or remand for want of jurisdiction. Mut.
Assignment & Indem. Co. v. Lind-Waldock & Co., LLC, 364 F.3d 858, 861 (7th Cir. 2004).
Merely alleging, upon information and belief, that Chan is the sole member of HKRR, LLC, and
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a citizen of Hong Kong is insufficient to establish diversity jurisdiction. Consequently, the
Defendants must amend their Notice of Removal with respect to its allegations that Chan is the
sole member of HKRR, LLC, and as to Chan’s citizenship.
Therefore, the Defendants are ORDERED to file an amended Notice of Removal on or
before September 29, 2011, properly alleging on personal knowledge the membership of HKRR,
LLC, and the citizenship of Third Party Defendant Hughes Chan a/k/a Chan Yu.
SO ORDERED.
Entered this 8th day of September, 2011.
/S/ Roger B. Cosbey
Roger B. Cosbey,
United States Magistrate Judge
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