Coastal Industries LLC v. Arkel Constructors, LLC et al
Filing
22
ORDER: Defendants, The Leffler Group Consulting Structural Engineers, Inc. d/b/a The Leffler Group and Smith LaRock Architecture P.C., shall have 7 days from the date of this Order to file an amended Notice of Removal without further leave of Court properly setting forth the citizenship particulars required to establish that the Court has diversity jurisdiction over the case. Signed by Magistrate Judge Erin Wilder-Doomes on 10/14/2016. (LLH)
UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF LOUISIANA
COASTAL INDUSTRIES, LLC
CIVIL ACTION
VERSUS
NO. 16-480-JJB-EWD
ARKEL CONSTRUCTORS, LLC, ET AL.
ORDER
Before the Court is a Motion to Remand and for Expedited Consideration, filed by plaintiff
Coastal Industries, LLC.1 Plaintiff asserts that the matter should be remanded because the Notice
of Removal is procedurally defective under 28 U.S.C. § 1446 and because the Court lacks subject
matter jurisdiction under 28 U.S.C. § 1332 due to the lack of complete diversity between the
properly named parties.2
This case was removed by The Leffler Group Consulting Structural Engineers, Inc. d/b/a
The Leffler Group and Smith LaRock Architecture P.C. (collectively, “Defendants”), based upon
the Court’s diversity jurisdiction under 28 U.S.C. § 1332.3 The Notice of Removal makes the
following allegations regarding the citizenship of the parties:
2.
In its Petition plaintiff, Coastal Industries, LLC, alleges that it is a
Louisiana liability company [sic] domiciled in the Parish of East
Baton Rouge. Upon information and belief all of its members are
domiciled in and are citizens of the State of Louisiana. Therefore,
Coastal Industries, LLC is deemed to be a citizen of the State of
Louisiana for purposes of removal based upon diversity of
citizenship.
1
R. Doc. 7.
Id. at 1.
3
R. Doc. 1 at ¶ 14.
2
3.
The defendant, The Leffler Group Consulting Structural Engineers,
Inc. d/b/a The Leffler Group, is a Colorado Corporation with its
principal place of business in Arvada, Colorado and is therefore
deemed to be a citizen of the State of Colorado for purposes of
diversity and removal jurisdiction.
4.
The defendant, Smith LaRock Architecture P.C., is a professional
corporation incorporated in the State of Colorado with its principal
place of business in Denver, Colorado and is therefore deemed to be
a citizen of the State of Colorado for purposes of diversity and
removal jurisdiction.
5.
Upon information and belief the remaining co-defendant, Arkel
Constructors, LLC, is a citizen of the State of Louisiana. However,
its citizenship should be disregarded for purposes of removal
because this non-diverse party is improperly joined as a defendant
as there is no possibility of recovery by the plaintiff against Arkel
Constructors, LLC. See Flagg v. Stryker Corp., 819 F.3d 132 (5th
Cir. 3/24/2016) and Smallwood v. Ill. Cent. R.R. Co., 385 F.3d 568
(5th Cir. 9/10/2004).4
Proper information regarding the citizenship of all parties is necessary to establish the
court’s diversity jurisdiction, as well as to make the determination required under 28 U.S.C. § 1441
regarding whether the case was properly removed to this Court. In the Notice of Removal,
citizenship has not been adequately alleged. While the citizenship of the corporate defendants,
The Leffler Group Consulting Structural Engineers, Inc. d/b/a The Leffler Group and Smith
LaRock Architecture P.C., have been adequately alleged,5 the citizenship of Coastal Industries,
LLC and Arkel Constructors, LLC, has not been adequately alleged. The Notice of Removal
alleges that Coastal Industries, LLC is a Louisiana limited liability company “domiciled in the
44
5
Id. at 2-3.
Id. at 2.
2
Parish of East Baton Rouge. Upon information and belief all of its members are domiciled in and
are citizens of the State of Louisiana. Therefore, Coastal Industries, LLC is deemed to be a citizen
of the State of Louisiana for purposes of removal based upon diversity of citizenship.”6 The Notice
of Removal also alleges that “Arkel Constructors, LLC, is a citizen of the State of Louisiana.”7
The citizenship of a limited liability company is determined by the citizenship of all of its
members. Harvey v. Grey Wolf Drilling Co., 542 F.3d 1077, 1080 (5th Cir. 2008). Thus, the
Notice of Removal must identify each member of the limited liability companies and allege each
member’s individual citizenship. See, Richards v. Ocwen Loan Servicing, L.L.C., 2015 WL
1012988, at *2 (E.D. La. Mar. 5, 2015); Advocate Fin., L.L.C. v. Maher, 2010 WL 2522636, at *2
(M.D. La. June 15, 2010). See, Mas v. Perry, 489 F.2d 1396, 1399 (5th Cir. 1974) (“For diversity
purposes, citizenship means domicile; mere residence in the State is not sufficient.”). The Notice
of Removal neither identifies the members of Coastal Industries, LLC and Arkel Constructors,
LLC, nor does it state the citizenship of those members. Although Defendants assert that the
citizenship of Arkel Constructors, LLC should be disregarded as an improperly joined party, the
issue of improper joinder is currently before the Court in Plaintiff’s Motion to Remand.8 In order
for the Court to make a determination regarding whether removal was proper under 28 U.S.C. §
1441 and whether there is diversity jurisdiction under 28 U.S.C. § 1332, Defendants must properly
allege the citizenship of the parties.
Accordingly,
IT IS HEREBY ORDERED that Defendants, The Leffler Group Consulting Structural
Engineers, Inc. d/b/a The Leffler Group and Smith LaRock Architecture P.C., shall have 7 days
6
Id.
Id.
8
R. Doc. 7.
7
3
from the date of this Order to file an amended Notice of Removal without further leave of Court
properly setting forth the citizenship particulars required to establish that the Court has diversity
jurisdiction over the case.
Signed in Baton Rouge, Louisiana, on October 14, 2016.
S
ERIN WILDER-DOOMES
UNITED STATES MAGISTRATE JUDGE
4
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?