Jim Lupient Company v. General Motors LLC
Filing
4
ORDER re 1 Complaint filed by Jim Lupient Company (Written Opinion). Signed by Judge Joan N. Ericksen on February 4, 2014. (CBC)
UNITED STATES DISTRICT COURT
DISTRICT OF MINNESOTA
Jim Lupient Company,
Plaintiff,
v.
Civil No. 14-308 (JNE/FLN)
ORDER
General Motors, LLC,
Defendant.
Asserting violations of Minn. Stat. ch. 80E, Jim Lupient Company (Lupient)
brought this action against General Motors, LLC (GM), under the jurisdiction conferred
by 28 U.S.C. § 1332(a)(1) (2006 & Supp. V 2011). The Court has “an independent
obligation to determine whether subject-matter jurisdiction exists, even when no party
challenges it.” Hertz Corp. v. Friend, 559 U.S. 77, 94 (2010). Observing that Lupient
failed to allege GM’s citizenship, the Court grants Lupient an opportunity to file an
amended complaint.
A district court has original jurisdiction over a civil action where the matter in
controversy exceeds the sum or value of $75,000, exclusive of interest and costs, and is
between citizens of different states. 28 U.S.C. § 1332(a)(1). “When jurisdiction is based
on diversity of citizenship, the pleadings, to establish diversity, must set forth with
specificity the citizenship of the parties.” Barclay Square Props. v. Midwest Fed. Sav. &
Loan Ass’n of Minneapolis, 893 F.2d 968, 969 (8th Cir. 1990). As the party invoking
diversity jurisdiction, Lupient bears the burden of alleging each party’s citizenship. See
Walker v. Norwest Corp., 108 F.3d 158, 161 (8th Cir. 1997).
1
In its Complaint, Lupient alleged that it “is a corporation organized and existing
under the laws of Minnesota with its principal place of business in . . . Minnesota”; that
GM “is a limited liability company organized and existing under the laws of Delaware
with its principal place of business located in . . . Michigan”; and that “[a]ll of the
underlying LLC members are domiciled outside of the state of Minnesota.” Lupient
alleged that it is a citizen of Minnesota. See 28 U.S.C. § 1332(c)(1). It did not allege
GM’s citizenship.
For purposes of diversity jurisdiction, a limited liability company’s citizenship is
that of its members. OnePoint Solutions, LLC v. Borchert, 486 F.3d 342, 346 (8th Cir.
2007); GMAC Commercial Credit LLC v. Dillard Dep’t Stores, Inc., 357 F.3d 827, 829
(8th Cir. 2004). “When diversity jurisdiction is invoked in a case in which a limited
liability company is a party, the court needs to know the citizenship of each member of
the company.” Delay v. Rosenthal Collins Grp., LLC, 585 F.3d 1003, 1005 (6th Cir.
2009); see Rolling Greens MHP, L.P. v. Comcast SCH Holdings L.L.C., 374 F.3d 1020,
1022 (11th Cir. 2004) (per curiam) (“To sufficiently allege the citizenships of these
unincorporated business entities, a party must list the citizenships of all the members of
the limited liability company and all the partners of the limited partnership.”); cf. Barclay
Square Props., 893 F.2d at 969 (“Barclay Square Properties is a limited partnership, and
because its complaint did not allege the citizenship of each limited partner, the pleadings
were insufficient to establish diversity jurisdiction.”). “[B]ecause a member of a limited
liability company may itself have multiple members—and thus may itself have multiple
citizenships—the federal court needs to know the citizenship of each ‘sub-member’ as
2
well.” Delay, 585 F.3d at 1005. Lupient did not allege the citizenship of each member of
GM. See D.B. Zwirn Special Opportunities Fund, L.P. v. Mehrotra, 661 F.3d 124, 12527 (1st Cir. 2011) (per curiam); Lindley Contours, LLC v. AABB Fitness Holdings, Inc.,
414 F. App’x 62, 64-65 (9th Cir. 2011).
Having failed to allege the citizenship of the members of GM, Lupient has not
satisfied its burden of alleging diversity jurisdiction. Unless Lupient files by February
12, 2014, an amended complaint that alleges with specificity the citizenship of each party
at the time of this action’s commencement, see Grupo Dataflux v. Atlas Global Grp.,
L.P., 541 U.S. 567, 574-75 (2004), the Court will dismiss this action for lack of subjectmatter jurisdiction. See 28 U.S.C. § 1653 (2006) (“Defective allegations of jurisdiction
may be amended, upon terms, in the trial or appellate courts.”); Dubach v. Weitzel, 135
F.3d 590, 593 (8th Cir. 1998).
IT IS SO ORDERED.
Dated: February 4, 2014
s/Joan N. Ericksen
JOAN N. ERICKSEN
United States District Judge
3
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?