Specialized Component Parts Limited Inc v. Surface Igniter LLC et al

Filing 4

OPINION AND ORDER re 2 NOTICE OF REMOVAL filed by Defendants George Hanna, Surface Igniter LLC. Defendants ORDERED to file an Amended Notice of Removal by 8/17/2012 as outlined in Order. Signed by Magistrate Judge Roger B Cosbey on 8/3/12. (cer)

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF INDIANA
FORT WAYNE DIVISION

SPECIALIZED COMPONENT PARTS
LIMITED, INC. d/b/a SCP LIMITED, INC.,

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Plaintiff,
v.
SURFACE IGNITER, LLC, and
GEORGE HANNA,
Defendants.

CAUSE NO. 1:12-CV-266

OPINION AND ORDER
This case was removed to this Court from the Dekalb Superior Court by Defendants
based on diversity jurisdiction pursuant to 28 U.S.C. § 1332(a). (Docket # 2.) The Notice of
Removal alleges that “Defendant Surface Igniter is and was . . . a corporation organized under
the laws of the Commonwealth of Puerto Rico with its principal place of business located in the
State of Ohio” and that Defendant George Hanna “is and was . . . a resident of the State of
Ohio.” (Notice of Removal ¶¶ 6-7.)
Defendants’ Notice of Removal, however, is inadequate because the “residency” of each
party is meaningless for purposes of diversity jurisdiction, as “citizenship is what matters.”
Guar. Nat’l Title Co. v. J.E.G. Assocs., 101 F.3d 57, 58-59 (7th Cir. 1996) (explaining that
statements concerning a party’s “residency” are not proper allegations of citizenship as required
by 28 U.S.C. § 1332); see 28 U.S.C. § 1332. “It is well-settled that when the parties allege
residence but not citizenship, the court must dismiss the suit.” Held v. Held, 137 F.3d 998, 1000
(7th Cir. 1998) (internal quotation marks and citation omitted)); see generally Smoot v. Mazda
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Motors of Am., Inc., 469 F.3d 675, 677-78 (7th Cir. 2006).
Therefore, the Court must be advised of each party’s citizenship, not residency. As to
Defendant Hanna, “[f]or natural persons, state citizenship is determined by one’s domicile.”
Dausch v. Rykse, 9 F.3d 1244, 1245 (7th Cir. 1993); see also Heinen v. Northrop Grumman
Corp., 671 F.3d 669, 670 (7th Cir. 2012) (“But residence may or may not demonstrate
citizenship, which depends on domicile—that is to say, the state in which a person intends to live
over the long run.”); Am.’s Best Inns, Inc. v. Best Inns of Abilene, L.P., 980 F.2d 1072, 1074 (7th
Cir. 1992) (“In federal law citizenship means domicile, not residence.”).
As to Defendant Surface Igniter, LLC, although the Defendants allege that Surface
Igniter is “a corporation organized under the laws of the Commonwealth of Puerto Rico”
(Notice of Removal ¶ 6 (emphasis added)), the Defendants also indicate that Surface Igniter is an
“LLC” in both the caption and introductory paragraph of their Notice of Removal. If Surface
Igniter is an LLC rather than a corporation, then the Notice of Removal is insufficient as 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).
Therefore, if Surface Igniter is actually an LLC, the Court must be advised of the citizenship of
all its members to ensure that none of its members share a common citizenship with Plaintiff.
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 Surface Igniter, LLC, 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).

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Therefore, Defendant is ORDERED to supplement the record by filing an Amended
Notice of Removal on or before August 17, 2012, properly alleging the citizenship of Defendant
Hanna, clarifying whether Defendant Surface Igniter is an LLC or corporation, and then making
the correct citizenship allegations based on Surface Igniter’s company form.
SO ORDERED.
Enter for this 3rd day of August, 2012.
/S/ Roger B. Cosbey
Roger B. Cosbey,
United States Magistrate Judge

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