Deutsch, Kerrigan & Stiles, LLP v. U.S. Capital, Incorporated et al

Filing 39

ORDER DISMISSING CASE: lawsuit is dismissed without prejudice for lack of jurisdiction. Signed by District Judge Louis Guirola, Jr. on 1/5/09 (wld)

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF MISSISSIPPI SOUTHERN DIVISION D E U T S C H , KERRIGAN &STILES, LLP v. IK E THRASH and DAWN IN V E S T M E N T S , LLC U .S . CAPITAL, INC. § P L A I N T I F F /C O U N T E R - D E F E N D A N T § § C IV IL ACTION NO. 1:08CV196-LG-RHW § § § D E F E N D A N T S /C O U N T E R - P L A I N T I F F S § § D E F E N D A N T /C O U N T E R - C L A I M A N T § A N D THIRD PARTY DEFENDANT § § T H IR D -P A R T Y DEFENDANT

J O E L L. BLACKLEDGE

O R D E R DISMISSING CASE FOR LACK OF JURISDICTION T H IS MATTER IS BEFORE THE COURT sua sponte for the purpose of determining w h e th e r this Court has diversity jurisdiction in this matter.1 On December 9, 2008, this Court en tered an Order [34] suggesting that the Plaintiff, a Louisiana limited liability partnership, m aintained offices in Mississippi and that several "partners" were citizens of Mississippi. Since som e of the Defendants were alleged to be citizens of Mississippi, it appeared that there was a lack o f complete diversity. The Court ordered the parties to brief the issue. After careful consideration o f the arguments of the parties, the Court finds that this Court does not have jurisdiction over this l a w s u i t. D IS C U S S IO N P u r su an t to 28 U.S.C. § 1332, diversity jurisdiction exists over all civil actions in which the m atter in controversy exceeds the sum or value of $75,000.00, exclusive of interest and costs, and the dispute is between citizens of different states. For diversity purposes, a limited partnership is a

United States District Courts and Courts of Appeals have the responsibility to consider the q u estio n of subject matter jurisdiction sua sponte if it is not raised by the parties and to dismiss any action if such jurisdiction is lacking. FED. R. CIV. P. 12(h)(3); Matter of Kutner, 656 F.2d 1107, 11 10 (5th Cir.1981), cert. denied, 455 U.S. 945, 102 S.Ct. 1443, 71 L.Ed.2d 658 (1982).

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citiz en of each state in which its partners hold citizenship. Whalen v. Carter, 954 F.2d 1087, 1095 (5th Cir. 1992). The Fifth Circuit has specifically held that this rule applies to Louisiana limited partnersh ips. Whalen, 954 F.2d at 1095. P lain tiff essentially argues that a Louisiana LLP should be treated differently. With all due re sp ect to Plaintiff's arguments, this Court is unpersuaded. A similar argument was rejected in N ew po rt Ltd. v. Sears, Roebuck and Co., 941 F.2d 302 (5th Cir. 1991). Moreover, Plaintiff is u n ab le to cite any authority tending to show that the Louisiana legislature has crafted a corporate cr eatu re that, for purposes of determining federal diversity jurisdiction, must be treated differently th an an LLP in any other state. As noted by the court in Newport, any change in jurisdictional treatm ent accorded to artificial entities should be addressed to the Congress. Id. at 307. It is uncontested that the Plaintiff, Deutsch, Kerrigan & Stiles, LLP (DKS), is a Louisiana lim ited liability partnership, and one or more of its partners are citizens of Mississippi. The D efend ant, Ike Thrash, is a citizen of Mississippi. The Defendant, Dawn Investments, LLC, is a M ississip p i limited liability company. Therefore, under established precedent, DKS, Thrash, and D aw n Investments are citizens of Mississippi for diversity purposes. Absent complete diversity this Court does not have jurisdiction over this lawsuit. IT IS THEREFORE ORDERED AND ADJUDGED that this lawsuit is hereby D IS M I S S E D WITHOUT PREJUDICE for lack of jurisdiction.

S O ORDERED AND ADJUDGED this the 5 th day of January, 2009. s/

Louis Guirola, Jr.

LOUIS GUIROLA, JR. U N IT E D STATES DISTRICT JUDGE

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