Illinois Central School Bus LLC v. The Arc of Northwest Indiana

Filing 22

OPINION AND ORDER: Court sua sponte ORDERS Plaintiff Illinois Central School Bus, LLC, to submit, by 7/25/2016, a jurisdictional statement and supporting brief as outlined. Signed by Judge Theresa L Springmann on 7/15/2016. (tc)

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF INDIANA
ILLINOIS CENTRAL SCHOOL
BUS, LLC,
Plaintiff,
v.
THE ARC OF NORTHWEST INDIANA,
INC.
Defendant.

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CAUSE NO.: 2:15-CV-224-TLS

OPINION AND ORDER
This matter is before the Court sua sponte. The Court must continuously police its subject
matter jurisdiction. Hay v. Ind. State Bd. of Tax Comm’rs, 312 F.3d 876, 879 (7th Cir. 2002).
The Complaint alleges that the Court’s original subject matter jurisdiction is based on
diversity of citizenship under 28 U.S.C. § 1332. Diversity jurisdiction exists when the parties to
an action on each side are citizens of different states, with no defendant a citizen of the same
state as any plaintiff, and the amount in controversy exceeds $75,000. 28 U.S.C. § 1332(a)(1). In
this case, the amount in controversy exceeds $75,000.
As for diversity of citizenship, the Plaintiff is a limited liability company and the
Defendant is a corporation. A limited liability company is analogous to a partnership and takes
the citizenship of its members. Belleville Catering Co. v. Champaign Mkt. Place, LLC, 350 F.3d
691, 692 (7th Cir. 2003). If the members of the limited liability company are themselves limited
liability companies, the plaintiff must also plead the citizenship of those members as of the date
the complaint was filed. Thomas v. Guardsmark, LLC, 487 F.3d 531, 534 (7th Cir. 2007) (“[A]n
LLC’s jurisdictional statement must identify the citizenship of each of its members as of the date

the complaint or notice of removal was filed, and, if those members have members, the
citizenship of those members as well.”). A corporation, however, is deemed to be a citizen of
every state and foreign state in which it has been incorporated and the state or foreign state
where it has its principal place of business. 28 U.S.C. § 1332(c)(1). The term “principal place of
business” refers to the corporation’s “nerve center,” that is, the place where a corporation’s
officers direct, control, and coordinate the corporation’s activities. Hertz Corp. v. Friend, 559
U.S. 77, 92-93 (2010). Plaintiff Illinois Central School Bus, LLC, invoked this Court’s diversity
jurisdiction by filing Indiana state law claims in federal court. As the party seeking federal
jurisdiction, Illinois Central School Bus, LLC, has the burden of establishing that subject matter
jurisdiction exists. Smart v. Local 702 Int’l Bhd. of Elec. Workers, 562 F.3d 798, 802-03 (7th Cir.
2009).
There is insufficient information for the Court to determine the Plaintiff’s citizenship,
which is necessary to determine whether this case properly invokes this Court’s diversity jurisdiction.
28 U.S.C. § 1332. The Plaintiff “is a limited liability company organized and existing under the laws of
the State of Illinois with its principal place of business located [in] . . . Joliet, Illinois.” (Compl. 1.) The
“sole manager-member” of the Plaintiff is “North America Central School Bus Intermediate Holding
Company LLC, which is a limited liability company organized and existing under the laws of the State of
Delaware.” (Id.) The Plaintiff has not identified the members of North America Central School Bus
Intermediate Holding Company LLC, and this information is necessary to determine whether diversity of
citizenship exists. Wise v. Wachovia Sec., LLC, 450 F.3d 265, 267 (7th Cir. 2006).
The Court will also highlight that it is not the residency of an individual or a limited liability
company that matters, but rather the citizenship of the individual or limited liability company. See
Meyerson v. Harrah’s E. Chi. Casino, 299 F.3d 616, 617 (7th Cir. 2002) (per curiam). An individual’s
citizenship depends on his or her domicile. See id. Domicile is the place one intends to remain. Dakuras v.

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Edwards, 312 F.3d 256, 258 (7th Cir. 2002). As noted above, the citizenship of a limited liability
company is the citizenship of each of its members, which in turn may be another limited liability
company, an individual, or a corporation.

Therefore, the Court ORDERS Plaintiff Illinois Central School Bus, LLC, to submit, on
or before, July 25, 2016, a jurisdictional statement and supporting brief providing:
(1) the members of North America Central School Bus Intermediate Holding Company LLC;
and
(2) the citizenship of the members of North America Central School Bus Intermediate Holding
Company LLC.

SO ORDERED on July 15, 2016.
s/ Theresa L. Springmann
THERESA L. SPRINGMANN
UNITED STATES DISTRICT COURT
FORT WAYNE DIVISION

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