LaBorde et al v. Treadwell Restaurants of LA L L C

Filing 8

ORDER re 1 Notice of Removal filed by Zurich American Insurance Co, Treadwell Restaurants of LA L L C. Defendants are granted leave to file an amended Notice of Removal within the next fourteen days which establishes diversity jurisdiction. If defendants fail to so comply, or if subject matter jurisdiction is found lacking, then the matter will be remanded to state court. Signed by Magistrate Judge Karen L Hayes on 12/27/12. (crt,Yocum, M)

UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF LOUISIANA
MONROE DIVISION
RODNEY LABORDE AND LORI
LABORDE

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CIVIL ACTION NO. 12-2328

VERSUS

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JUDGE ROBERT G. JAMES

TREADWELL RESTAURANTS OF
LA, LLC, ET AL.

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MAG. JUDGE KAREN L. HAYES

ORDER
On September 6, 2012, defendants, Zurich American Insurance Company and Treadwell
Restaurants of LA, LLC (“Treadwell”), removed the instant case to federal court, apparently on
the basis of diversity jurisdiction. See Notice of Removal.1 A notice of removal, however, must
contain a short and plain statement setting forth the grounds for removal. 28 U.S.C. § 1446(a).
Furthermore, federal courts are courts of limited jurisdiction. Howery v. Allstate Ins. Co., 243
F.3d 912, 916 (5th Cir. 2001). The burden of establishing federal jurisdiction rests on the party
invoking the federal forum. Id. When jurisdiction depends on citizenship, “citizenship must be
‘distinctly and affirmatively alleged.’” Getty Oil, Div. Of Texaco v. Ins. Co. of North America,
841 F.2d 1254, 1259 (5th Cir. 1988) (citation omitted) (emphasis in citing source). This rule
requires “strict adherence.” Id.
In the case sub judice, the notice of removal alleges that removing defendant, Treadwell,
is a Missouri limited liability company, and that its sole member is a Missouri domiciliary. See

1

The Notice of Removal endeavored to set forth the citizenship of the parties, but did not
specifically invoke 28 U.S.C. § 1332. Id.

Notice of Removal.2 In its corporate disclosure statement, Treadwell states that its sole member
is “James M. Treadwell revocable Trust, of Christian City, Missouri” (the “Trust”). (Rule 7.1
Disclosure Statement [doc. # 2]). However, removing defendants fail to identify the trustee and
his or her citizenship. See Mullins, supra (citizenship of a trust is that of its trustee).3
Furthermore, the notice of removal does not contain a statement asserting (and
demonstrating) that the amount in controversy exceeded the jurisdictional minimum at the time
of removal. See 28 U.S.C. § 1446(c)(2).
Accordingly, within the next fourteen days from the date of this order, defendants are
granted leave of court to file an amended notice of removal which establishes diversity
jurisdiction. See 28 U.S.C. §1653. If defendants fail to so comply, or if subject matter
jurisdiction is found to be lacking, then the matter will be remanded to state court.
IT IS SO ORDERED.

2

For purposes of diversity, the citizenship of a limited liability company (“LLC”) is
determined by the citizenship of all of its members. Harvey v. Grey Wolf Drilling Co., 542 F.3d
1077, 1080 (5th Cir. 2008). Moreover, for each member of an LLC that is itself an LLC or
partnership, its members and their citizenship must be identified and traced up the chain of
ownership until one reaches only individuals and/or corporations. Lewis v. Allied Bronze, LLC,
2007 WL 1299251 (E.D. N.Y. May 2, 2007); see also Mullins v. TestAmerica, Inc., 564 F.3d
386, 397 (5th Cir. 2009) (suggesting that to discern the citizenship of an LLC, the court must trace
citizenship “down the various organizational layers”); Feaster v. Grey Wolf Drilling Co., 2007
WL 3146363, *1 (W.D. La. Oct. 25, 2007) (“citizenship must be traced through however many
layers of members or partners there may be”).
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As observed earlier, the notice of removal states that Treadwell’s sole member is
domiciled in Missouri. It remains unclear, however, whether removing defendants are referring
to the unnamed trustee, or simply concluding that the trust is domiciled in Missouri because that
it is where it was formed or its interests lie.
The court further notes that plaintiffs also sued “The Manager of Treadwell Restaurants
of LA, LLC d/b/a Kentucky Fried Chicken.” (Petition, ¶ 1). In a removed case, however,
fictitiously named defendants are disregarded for purposes of assessing diversity jurisdiction. 28
U.S.C. § 1441(b)(1).
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THUS DONE AND SIGNED, in chambers, at Monroe, Louisiana, this 27th day of
December 2012.

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