Hilbill Properties, LLC v. Seneca Specialty Insurance Company et al

Filing 6

MEMORANDUM AND ORDER: IT IS HEREBY ORDERED that, within ten days of the date of this Order, plaintiff shall file an amended complaint in accordance with this memorandum, setting forth the members of plaintiff Hilbill Properties, LLC and the citizens hip of each of those members. Additionally, the amended complaint shall include the place of incorporation and principal place of business for defendants Seneca Specialty Insurance Company, American International Group, Inc., and Lexington Insurance Company. IT IS FURTHER ORDERED that if plaintiff does not timely and fully comply with this order, this matter will be dismissed 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. Response to Court due by 4/28/2016. Signed by District Judge Stephen N. Limbaugh, Jr on 3/18/16. (CSG)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MISSOURI
EASTERN DIVISION
HILBILL PROPERTIES, LLC,
Plaintiff,
v.
SENECA SPECIALTY INSURANCE CO.,
AMERICAN INTERNATIONAL GROUP, INC.
LEXINGTON INSURANCE COMPANY,
Defendants.

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Case No. 4:16CV00328 SNLJ

MEMORANDUM AND ORDER
This matter is before the Court on review of the file following assignment to the
undersigned. The Eight 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. 2010).
The complaint in this action 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

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and the matter in controversy exceeds the sum of $75,000. Plaintiff, however, has failed
to plead sufficient facts to establish diversity jurisdiction.
The complaint alleges that plaintiff is a Missouri limited liability company. The
Eighth Circuit has held that limited liability companies are citizens of every state of
which any member is a citizen. GMAC Commercial Credit, LLC v. Dillard Dep’t Stores,
Inc., 357 F.3d 827, 829 (8th Cir. 2004). Thus, the Court must examine the citizenship of
each member of the limited liability company to determine whether diversity jurisdiction
exists. Id. The complaint contains no allegations concerning the citizenship of the
members of the plaintiff LLC.
Further, the complaint is deficient because it does not allege the corporate
defendants’ state of incorporation and principal place of business. “In order to
adequately establish diversity jurisdiction, a complaint must set forth with specificity a
corporate party's state of incorporation and its principal place of business. Where the
plaintiff fails to state the place of incorporation or the principal place of business of a
corporate party, the pleadings are inadequate to establish diversity.” Sanders, 823 F.2d at
216.
Plaintiff alleges that defendant Seneca Specialty Insurance Company is a foreign
insurance company with its home office in Phoenix, Arizona and its administrative office
in New York City, New York. Plaintiff alleges that defendant American International
Group, Inc. is a foreign corporation. Plaintiff alleges that defendant Lexington Insurance
Company’s main administrative office is located in Boston, Massachusetts. The
complaint includes an allegation that there is a corporate interrelationship between
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American International Group, Inc. and Lexington Insurance Company. These
allegations are insufficient to establish diversity jurisdiction, as the complaint fails to set
forth each corporate defendants’ state of incorporation and its principal place of business.
Accordingly,
IT IS HEREBY ORDERED that, within ten days of the date of this Order,
plaintiff shall file an amended complaint in accordance with this memorandum, setting
forth the members of plaintiff Hilbill Properties, LLC and the citizenship of each of those
members. Additionally, the amended complaint shall include the place of incorporation
and principal place of business for defendants Seneca Specialty Insurance Company,
American International Group, Inc., and Lexington Insurance Company.
IT IS FURTHER ORDERED that if plaintiff does not timely and fully comply
with this order, this matter will be dismissed 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.
Dated this 18th day of March, 2016.

_____________________________________
STEPHEN N. LIMBAUGH, JR.
UNITED STATES DISTRICT JUDGE

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