Johnson v. Magee et al

Filing 8

MEMORANDUM ORDER : Counsel for FedEx is directed to determine as soon as reasonably possible FedExs (1) state of incorporation and (2) the state where it has its principal place of business, and provide the information to counsel for Plaintiff so tha t this preliminary issue may be resolved without the need for discovery. Plaintiff is directed to take the necessary steps (which willinclude filing a motion for leave in accordance with LR 7.4.1) to file an Amended Complaint that sets forth with spe cificity the citizenship of Milton Magee and FedEx Freight, Inc. under the rules described above. The deadline for compliance with this order is October 31, 2011. If the amended pleading establishes diversity jurisdiction, a scheduling conference will be set. If jurisdiction is not established, the case may be subject to dismissal for lack of jurisdiction. Signed by Magistrate Judge Mark L Hornsby on 10/12/2011. (crt,Kennedy, T)

UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF LOUISIANA
SHREVEPORT DIVISION

NICHOLAS JOHNSON

CIVIL ACTION NO. 11-cv-1608

VERSUS

JUDGE HICKS

MILTON MAGEE, ET AL

MAGISTRATE JUDGE HORNSBY

MEMORANDUM ORDER
Nicholas Johnson (“Plaintiff”), a Louisiana citizen, alleges that he was seriously
injured in a traffic accident when he was struck by a FedEx Freight vehicle. He filed this
action based on an assertion of diversity of citizenship. As the party invoking the court’s
jurisdiction, Plaintiff bears the burden of articulating facts that justify its exercise. The
current pleadings do not satisfy that burden.
The first named defendant is Milton Magee, the driver of the truck. Plaintiff’s
complaint does not allege Magee’s citizenship, and Magee did not include that information
in his answer. The court must know the state in which Magee has his domicile or citizenship
before it can determine it has subject-matter jurisdiction.
The second named defendant is “Federal Express Corporation, also doing business as
Federal Express Freight.” An answer was filed by FedEx Freight, Inc., which alleged that
it is a separate and distinct corporation from Federal Express Corporation and that it is
“headquartered in Harrison, Arkansas.” Assuming FedEx Freight, Inc. is the proper
defendant, the record is lacking in the facts needed to determine its citizenship for purposes
of diversity jurisdiction.

A corporation is deemed to be a citizen of (1) the state in which it was incorporated
and (2) the state where it has its principal place of business. 28 U.S.C. § 1332(c)(1). To
establish diversity jurisdiction, a complaint must set forth “with specificity” a corporate
party’s state of incorporation and its principal place of business. Joiner v. Diamond M
Drilling Co., 677 F.2d 1035, 1039 (5th Cir. 1982). See also Getty Oil Corp. v. Insurance
Company of North America, 841 F.2d 1254, 1259 (5th Cir. 1988) (“In cases involving
corporations, allegations of citizenship must set forth the state of incorporation as well as the
principal place of business of each corporation”). The Fifth Circuit requires strict adherence
to these straightforward rules. Howery v. Allstate Ins. Co., 243 F.3d 912, 919 (5th Cir. 2001).
FedEx’s allegation that it is headquartered in Arkansas likely means that Arkansas is
the state of its principal place of business under the standard announced in Hertz Corp. v.
Friend, 130 S.Ct. 1181 (2010). FedEx does not provide any information regarding the state
in which it is incorporated.
Counsel for FedEx is directed to determine as soon as reasonably possible FedEx’s
(1) state of incorporation and (2) the state where it has its principal place of business, and
provide the information to counsel for Plaintiff so that this preliminary issue may be resolved
without the need for discovery. Plaintiff is directed to take the necessary steps (which will
include filing a motion for leave in accordance with LR 7.4.1) to file an Amended Complaint
that sets forth with specificity the citizenship of Milton Magee and FedEx Freight, Inc. under
the rules described above. The deadline for compliance with this order is October 31, 2011.
If the amended pleading establishes diversity jurisdiction, a scheduling conference will be
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set. If jurisdiction is not established, the case may be subject to dismissal for lack of
jurisdiction.
THUS DONE AND SIGNED in Shreveport, Louisiana, this 12th day of October,
2011.

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