SJB Group, LLC et al v. TBE Group, Inc.

Filing 6

ORDER: IT IS ORDERED, pursuant to 28 U.S.C. §1653, that, on or before 5/10/2012, the plaintiff shall file an amended complaint providing its citizenship, by setting forth all citizenship particulars required to sustain federal diversity jurisdiction.. Signed by Magistrate Judge Docia L Dalby on 4/24/2012. (CMM)

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UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF LOUISIANA SJB GROUP, LLC, ET AL CIVIL ACTION VERSUS NO. 12-181-BAJ-DLD TBE GROUP, INC. ORDER The court sua sponte notes the potential insufficiency of the plaintiff’s allegation of the citizenship of the parties as follows; 1. A party invoking diversity jurisdiction must allege the citizenship rather than mere residence of an individual. In addition, see 28 U.S.C. §1332(c)(2) for infants, minors and an incompetent. The citizenship of __ is not provided. 2. A party invoking diversity jurisdiction must allege both the state of incorporation and principal place of business of each corporate party. See, e.g., Illinois Central Gulf Railroad Co. v. Pargas, Inc., 706 F.2d 633 (5th Cir. 1983). The state of incorporation and principal place of business of _______________ is not provided.1 3. ____ A party invoking diversity jurisdiction must allege both the state of incorporation and principal place of business of each corporate party. See, e.g., Illinois Central Gulf Railroad Co. v. Pargas, Inc., 706 F.2d 633 (5th Cir. 1983). Even when a liability insurer takes on its insured’s citizenship under 28 U.S.C. § 1332(c)(1), its own citizenship still is considered in determining whether complete diversity exists. The state of incorporation and principal place of business of ________ is not provided.2 4. X A party invoking diversity jurisdiction must properly allege the citizenship of a limited liability company. The citizenship of a limited liability company for diversity purposes is determined by the citizenship of its members. The citizenship of all of the members of a limited liability company must be 1 The phrase “principal place of business” in §1332(c)(1) refers to the place where a corporation’s high level officers direct, control, and coordinate the corporation’s activities, i.e., its “nerve center,” which will typically be found at its corporate headquarters. Hertz Corp. v. Friend, 130 S.Ct. 1181, 175 L.Ed.2d 1029 (2010) 2 See footnote 1. properly alleged. In the event a member of a limited liability company is another limited liability company, the members of that limited liability company must be properly alleged as well. See Harvey v. Grey Wolf Drilling Co., 542 F.3d 1077, 1080 (5th Cir. 2008). The complete citizenship of plaintiff, SJB GROUP, LLC, is not provided. 5. A party invoking diversity jurisdiction must properly allege the citizenship of a general partnership and a limited liability partnership. For a general partnership, case law suggests that a partnership has the citizenship of each one of its partners. See International Paper Co. v. Denkmann Assoc., 116 F.3d 134, 137 (5th Cir. 1997). A limited liability partnership or L.L.P. also has the citizenship of each one of its partners, both general and limited. See Carden v. Arkoma Associates, 494 U.S. 185, 110 S.Ct. 1014, 108 L.Ed.2d 157 (1990). The citizenship of ____ is not provided. 6. ____ A party invoking diversity jurisdiction must properly allege the citizenship of Underwriters at Lloyd's, London. The citizenship of Underwriters at Lloyd's, London has not been provided. See Corfield v. Dallas Glen Hills LP, 355 F.3d 853 (5th Cir. 2003), cert. denied, 541 U.S. 1073, 124 S.Ct. 2421, 158 L.Ed.2d 983 (2004). 7. ____ A party invoking diversity jurisdiction must properly allege the citizenship of a sole proprietorship. A business entity cannot be both a corporation and sole proprietorship; therefore the court seeks to clarify the identity of plaintiff/defendant. Case law suggests that the citizenship of a sole proprietorship for diversity purposes is determined by the citizenship of its members and/or owners. See Linder Enterprises v. Martinringle, 2007 WL 3095382 (N.D. Tex.). The citizenship of ________ is not provided. Accordingly, IT IS ORDERED, pursuant to 28 U.S.C. §1653, that, on or before May 10, 2012, the plaintiff shall file an amended complaint providing its citizenship, by setting forth all citizenship particulars required to sustain federal diversity jurisdiction. Signed in Baton Rouge, Louisiana, on April 24, 2012. MAGISTRATE JUDGE DOCIA L. DALBY

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