Crown Financial, LLC v. Wildcat Drilling, LLC et al

Filing 18

RULING AND ORDER OF DISMISSAL: Plaintiff's Complaint is DISMISSED without prejudice for failure to establish subject matter jurisdiction. Signed by Judge Shelly D. Dick on 11/6/2017. (LLH)

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF LOUISIANA

CROWN FINANCIAL, LLC

CIVIL ACTION

VERSUS
NO. 17-211-SDD-RLB
WILDCAT DRILLING, LLC, ET AL.

RULING AND ORDER OF DISMISSAL
This matter is before the Court sua sponte.
On April 4, 2017, Crown Financial LLC (“Plaintiff”) commenced this action against
Wildcat Drilling, LLC and Warhorse Oil & Gas, LLC, alleging that the Court has diversity
jurisdiction over the action under 28 U.S.C. § 1332.1 Plaintiff asserted that it is a citizen
of Louisiana, and the defendants are citizens of Texas, without identifying the members
of each of those limited liability companies.
On April 25, 2017, the Court issued a sua sponte order pursuant to 28 U.S.C. §
1653, requiring Plaintiff to file, on or before May 10, 2017, an amended complaint
identifying all of the parties’ members for the purpose of establishing that there is in fact
complete diversity between the parties.2 On May 5, 2017, the Clerk of Court entered a
default as to the two defendants.3 On May 31, 2017, Plaintiff moved for default judgment.4
On September 27, 2017, the Court ordered Plaintiff to comply with the April 25,
2017 order by filing an amended complaint on or before October 6, 2017.5 On October

1

Rec. Doc. No. 1.
Rec. Doc. No. 10.
3
Rec. Doc. No. 12.
4
Rec. Doc. No. 14.
5
Rec. Doc. No. 15.
2

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6, 2017, Plaintiff sought a 20-day extension of the deadline to file the amended
complaint.6 The Court granted the motion, effectively establishing a new deadline of
October 26, 2017 to file the required amended complaint.7

Plaintiff did not file an

amended complaint by the deadline.
When jurisdiction depends on citizenship, the citizenship of each party must be
“distinctly and affirmatively” alleged in accordance with § 1332(a) and (c).8 “Failure
adequately to allege the basis for diversity jurisdiction mandates dismissal.”9
“The burden of proving that complete diversity exists rests upon the party who
seeks to invoke the court’s diversity jurisdiction.”10 The citizenship of a limited liability
company is determined by the citizenship of each of its members, not the state under
whose laws it is organized, the location of its principal place of business, or its
authorization to do business in a certain state.11 When members are themselves limited
liability companies, the citizenship must be traced through however many layers of
members there may be.12
Despite the Court’s orders, Plaintiff has not filed an amended complaint providing
the citizenship of each member of the parties, each of which is a limited liability company.
Accordingly, Plaintiff has not established that the Court has diversity jurisdiction pursuant
to 28 U.S.C. § 1332.

6

Rec. Doc. No. 16.
Rec. Doc. No. 17.
8
Stafford v. Mobil Oil Corp., 945 F.2d 803, 804 (5th Cir. 1991) (quoting McGovern v. American Airlines,
Inc., 511 F.2d 653, 654 (5th Cir. 1975)).
9
Stafford, 945 F.2d at 805 (citing Patterson v. Patterson, 808 F.2d 357, 357 (5th Cir. 1986); McGovern,
511 F.2d at 654)).
10
Getty Oil Corp., a Div. of Texaco v. Ins. Co. of N. Am., 841 F.2d 1254, 1259 (5th Cir. 1988).
11
See Harvey v. Grey Wolf Drilling Co., 542 F.3d 1077, 1080 (5th Cir. 2008).
12
Turner Bros. Crane & Rigging, LLC v. Kingboard Chem. Holding Ltd., No. 06-88, 2007 WL 2848154, at
*4 (M.D. La. Sept. 24, 2007).
7

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Based on the foregoing,
Plaintiff’s Complaint is DISMISSED without prejudice for failure to establish
subject matter jurisdiction.
IT IS SO ORDERED.
Baton Rouge, Louisiana, this 6th day of November, 2017.

S

________________________________
SHELLY D. DICK, DISTRICT JUDGE
MIDDLE DISTRICT OF LOUISIANA

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