U S Bank National Association v. Rancho Bossier S P L L C et al

Filing 35

MEMORANDUM ORDER: Plaintiff is directed to file by June 22, 2012 a Motion for Leave to Amend the Complaint and allege with specificity the identity and citizenship of the limited partners in Rancho Price Plaza, LP. ( Compliance Deadline set for 6/22/2012.) Signed by Magistrate Judge Mark L Hornsby on 6/4/12. (crt,Whidden, C)

UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF LOUISIANA
SHREVEPORT DIVISION

U.S. BANK NATIONAL ASSOCIATION

CIVIL ACTION NO. 12-cv-0320

VERSUS

JUDGE FOOTE

RANCHO BOSSIER SP, LLC, ET AL

MAGISTRATE JUDGE HORNSBY

MEMORANDUM ORDER
Plaintiff filed this action based on an assertion of diversity jurisdiction. The complaint
appears to adequately allege citizenship with respect to Plaintiff and one of the defendants,
but additional information is needed with respect to Rancho Bossier CP, LLC.
The complaint identifies that defendant as a limited liability company. The citizenship
of an LLC is determined by the citizenship of all of its members. If the members are
themselves partnerships, LLCs, corporations, or other form of entity, their citizenship must
be alleged in accordance with the rules applicable to that entity, and the citizenship must be
traced through however many layers of members or partners there may be. Burford v. State
Line Gathering System, LLC, 2009 WL 2487988 (W.D. La. 2009); D.B. Zwirn Special
Opportunities Fund, LP v. Mehrotra, 661 F.3d 124 (1st Cir. 2011).
Paragraph four of the complaint alleges that Rancho Bossier CP, LLC has two
members, one of which is a limited partnership and the other an LLC. Adequate information
regarding the LLC member is provided, but additional information about the limited

partnership member (Rancho Price Plaza, LP) is needed to ascertain the existence of diversity.
The citizenship of a limited partnership is that of all of its partners, both general and
limited. Carden v. Arkoma Associates, 110 S.Ct. 1015 (1990); Mullins v. Test America, Inc.,
300 Fed. Appx. 259 (5th Cir. 2008). The complaint identifies the general partner and
adequately alleges its citizenship, but it does not name any limited partners. Specific
allegations regarding the partners is required, even when there may be thousands of them.
Moran v. Gulf S. Pipeline Co., L.P., 2007 WL 276196 (W.D. La. 2007).
Plaintiff is directed to file by June 22, 2012 a Motion for Leave to Amend the
Complaint and allege with specificity the identity and citizenship of the limited partners
in Rancho Price Plaza, LP. Defendants are encouraged to promptly respond to any
request for information about the identity and citizenship of the limited partners so that
this preliminary issue may be resolved promptly and without undue expense. If the
amended complaint establishes the existence of diversity, the court will soon afterward
direct the exchange of initial disclosures and hold a scheduling conference.
THUS DONE AND SIGNED in Shreveport, Louisiana, this 4th day of June, 2012.

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