Beaulieu v. Watco Companies, L.L.C., et al

Filing 8

ORDER: Watco shall have seven (7) days from the date of this Order to file a comprehensive 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 9/5/2017. (LLH)

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF LOUISIANA

LARRY BEAULIEU

CIVIL ACTION

VERSUS

NO. 17-558-SDD-EWD

WATCO COMPANIES, L.L.C., ET AL.

ORDER
Before the Court is a Notice of Removal, filed by defendant Watco Companies, LLC
(“Watco”).1 Watco removed this matter from state court on August 15, 2017, asserting that this
Court has diversity jurisdiction pursuant to 28 U.S.C. § 1332.2 The Notice of Removal makes the
following allegations regarding the citizenship of the parties:
3. Citizenship of Plaintiff:
Beaulieu is, and was at the time the state-court action was
commenced, domiciled in the State of Louisiana and is a citizen of
Louisiana. 28 U.S.C. § 1332(c). See Petition, introductory
paragraph.
4. Citizenship of Defendant:
(a) At the time the action was filed, Watco was, and still is, a
Delaware corporation with its principal place of business in Kansas.
Its members are citizens of Delaware, Kansas, Texas, California,
and North Carolina. At the time that the action was commenced,
Watco was not, and still is not, a citizen of the State of Louisiana.
(b) Beaulieu further names American as a defendant, alleging that it
is “a domestic corporation” registered to do and doing business in
this state. But American’s citizenship is disregarded for purposes of
removal because Beaulieu has no viable cause of action against it on
the claims alleged.
(c) Complete diversity of citizenship exists in this case because the
only non-diverse defendant, American, has been improperly joined.
See, e.g., Burden v. General Dynamics Corp., 60 F.3d 213, 217 (5th
Cir. 1995). When the citizenship of the improperly joined party is
1
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R. Doc. 1.
Id. at ¶ 2.

disregarded, complete diversity exists between Beaulieu and the
remaining defendant, Watco. Id.3
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. Citizenship has not been
adequately alleged in the Notice of Removal. While the citizenship of Larry Beaulieu and Watco
has been adequately alleged,4 there is no allegation regarding the citizenship of American Interstate
Risk Services Incorporated (“American”). Watco asserts only that American, “is ‘a domestic
corporation’ registered to do and doing business in this state,” and that American is, “the only nondiverse defendant.”5 For purposes of diversity, “A corporation is a citizen of its place of
incorporation and its principal place of business.” 28 U.S.C. § 1332(c). See also, Getty Oil, Div.
of Texaco v. Ins. Co. of North America, 841 F.2d 1254, 1259 (5th Cir. 1988) (in diversity cases
involving corporations, “allegations of citizenship must set forth the state of incorporation as well
as the principal place of business of each corporation.”). Thus, to properly allege the citizenship
of a corporation, a party must identify the place of incorporation and the corporation’s principal
place of business in accordance with the requirements of 28 U.S.C. § 1332(c).
Accordingly,
IT IS HEREBY ORDERED that Watco shall have seven (7) days from the date of this
Order to file a comprehensive amended Notice of Removal without further leave of Court properly

3

Id. at ¶ 4.
With respect to Beaulieu, the Fifth Circuit has explained that, “For diversity purposes, citizenship means domicile;
mere residence in the State is not sufficient.” Mas v. Perry, 489 F.2d 1396, 1399 (5th Cir. 1974) (citations omitted).
With respect to Watco, for purposes of diversity, “A corporation is a citizen of its place of incorporation and its
principal place of business.” 28 U.S.C. § 1332(c). See also, Getty Oil, Div. of Texaco v. Ins. Co. of North America,
841 F.2d 1254, 1259 (5th Cir. 1988) (in diversity cases involving corporations, “allegations of citizenship must set
forth the state of incorporation as well as the principal place of business of each corporation.”).
5
R. Doc. 1 at ¶ 4(b) & (c).
4

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setting forth the citizenship particulars required to establish that the Court has diversity jurisdiction
over the case.
Signed in Baton Rouge, Louisiana, on September 5, 2017.

S
ERIN WILDER-DOOMES
UNITED STATES MAGISTRATE JUDGE

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