Indian Harbor Insurance Company v. Municipal Mortgage & Equity, LLC et al

Filing 13

MEMORANDUM AND ORDER. (see order for details) IT IS HEREBY ORDERED that by November 15, 2013, plaintiff shall file an amended complaint that alleges facts establishing the citizenship of each defendant. IT IS FURTHER ORDERED that if plaintiff does not timely and fully comply with this order, this matter will be dismissed without prejudice for lack of subject matter jurisdiction. IT IS FURTHER ORDERED that all other proceedings in this case are STAYED pending further order of this Court. Signed by District Judge Catherine D. Perry on 11/05/2013. (CBL)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MISSOURI
EASTERN DIVISION
INDIAN HARBOR INS. CO.,
Plaintiff,
vs.
MUNICIPAL MORTGAGE &
EQUITY, LLC, et al.,
Defendants.

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Case No. 4:13CV1551 CDP

MEMORANDUM AND ORDER
This matter is before the Court on review of the file. The Eighth Circuit has
admonished district courts to “be attentive to a satisfaction of jurisdictional
requirements in all cases.” Sanders v. Clemco Indus., 823 F.2d 214, 216 (8th Cir.
1987). “In every federal case the court must be satisfied that it has jurisdiction
before it turns to the merits of other legal arguments.” Carlson v. Arrowhead
Concrete Works, Inc., 445 F.3d 1046, 1050 (8th Cir. 2006). “A plaintiff who seeks
to invoke diversity jurisdiction of the federal courts must plead citizenship
distinctly and affirmatively.” 15 James Wm. Moore, et al., Moore’s Federal
Practice § 102.31 (3d ed. 2013).
The Complaint in this case asserts that the Court has jurisdiction over the
action pursuant to 28 U.S.C. § 1332 because the lawsuit is between citizens of
different States and the matter in controversy exceeds the sum of $75,000. The

Complaint alleges that plaintiff Indian Harbor Insurance Company is a North
Dakota company with its principal place of business in Connecticut. It further
alleges that defendant Aaron Sullivan is a “resident of the state of Missouri.” It
also alleges that defendant Municipal Mortgage and Equity, LLC is a Delaware
limited liability company with its principal place of business in Maryland. The
complaint further alleges that defendant Whispering Lake, L.P. is a Maryland
limited partnership with its principal place of business in Missouri. These
allegations are insufficient for the Court to determine whether it has diversity
jurisdiction over this matter.
Plaintiff apparently assumes that a limited liability company is treated like a
corporation and thus is a citizen of its state of organization and its principal place
of business. See 28 U.S.C. §§ 1332(a), (c)(1); Sanders, 823 F.2d at 215 n.1. That
is incorrect. Limited liability companies are citizens of every state of which any
member is a citizen. See GMAC Commercial Credit, LLC v. Dillard Dep’t Stores,
Inc., 357 F.3d 827, 829 (8th Cir. 2004). Thus, for defendant Municipal Mortgage
and Equity, LLC, the Court must examine the citizenship of each member of the
limited liability company to determine whether diversity jurisdiction exists. The
Complaint contains no allegations concerning the members of Municipal Mortgage
and Equity, LLC, or their citizenship.

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Likewise, for diversity purposes, the citizenship of a limited partnership is
the citizenship of each of its partners, both general and limited. Buckley v. Control
Data Corp., 923 F.2d 96, 97 (8th Cir. 1991) (citing Carden v. Arkoma Assocs., 494
U.S. 185, 195 (1990)). The Complaint contains no allegations concerning the
partners of Whispering Lake, nor of their citizenship.
The Complaint also alleges that the individual defendant Sullivan resides in
Missouri, but does not allege facts concerning his citizenship. “A complaint that
alleges merely residency, rather than citizenship, is insufficient to plead diverse
citizenship.” 15 Moore’s Federal Practice § 102.31; see Sanders, 823 F.2d at 215
n.1.
The Court will grant plaintiff ten (10) days to file an amended complaint that
alleges facts showing the existence of the requisite diversity of citizenship of the
parties. If plaintiff fails to timely and fully comply with this Order, the Court will
dismiss this matter without prejudice for lack of subject matter jurisdiction.
Accordingly,
IT IS HEREBY ORDERED that by November 15, 2013, plaintiff shall
file an amended complaint that alleges facts establishing the citizenship of each
defendant.

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IT IS FURTHER ORDERED that if plaintiff does not timely and fully
comply with this order, this matter will be dismissed without prejudice for lack of
subject matter jurisdiction.
IT IS FURTHER ORDERED that all other proceedings in this case are
STAYED pending further order of this Court.

CATHERINE D. PERRY
UNITED STATES DISTRICT JUDGE
Dated this 5th day of November, 2013.

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