Rangeline Capital, LLC v. Preston et al

Filing 56

MEMORANDUM AND ORDER..IT IS HEREBY ORDERED that, by May 23, 2018, defendants shall file an amended notice of removal that shall allege facts establishing the citizenship of the plaintiffs limited liability company members. IT IS FURTHER ORDERED that if defendants do not timely and fully comply with this order, this matter will be remanded for lack of subject matter jurisdiction Response to Court due by 5/23/2018.. Signed by District Judge Stephen N. Limbaugh, Jr on 5/9/18. (MRS)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MISSOURI
EASTERN DIVISION
RANGELINE CAPITAL, LLC,
Plaintiff,
v.
FORREST L. PRESTON, LC
HEALTHCARE HOLDING
COMPANY, LLC, and LIFE CARE
CENTERS OF AMERICA, INC.,
Defendants.

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Case No. 4:16-CV-1428-SNLJ

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). Because this action has been removed from state court to this
Court, defendants are seeking to invoke diversity jurisdiction; thus, the defendants have
the burden of establishing federal subject matter jurisdiction. In re Business Men’s
Assur. Co. of America, 992 F.2d 181, 183 (8th Cir. 1993).
The Notice of Removal (#1) asserts that the Court has jurisdiction over the action
under 28 U.S.C. § 1332 because the lawsuit is between citizens of different states and the
matter in controversy exceeds $75,000. The Notice alleges “Plaintiff is a limited liability

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company organized under the laws of the State of Missouri with its principal place of
business located in St. Louis, Missouri. . . . David B. Weiss (“Mr. Weiss”) and entities
affiliated with Mr. Weiss serve as the sole members and manager of Plaintiff. . . . Mr.
Weiss is a citizen of the State of Missouri . . . . Therefore, Plaintiff is a citizen of the State
of Missouri.” (#1 at 2, ¶ 4.)
The Eighth Circuit has held that 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, the Court must examine the
citizenship of each member of the plaintiff, including “entities affiliated with Mr. Weiss.”
Plaintiff’s disclosure of organizational interests lists two members. (#12 at 2.) But one
member is a corporation, and its citizenship is listed as “Missouri,” without any reference
to its state or incorporation or principle place of business. In any event, it is the
defendants’ burden in this case to establish subject matter jurisdiction. In re Business
Men’s Assur. Co. of America, 992 F.2d at 183. As such, the Court will grant defendants
fourteen days to file an amended notice of removal that alleges facts showing the required
diversity of citizenship. If defendants fail to timely and fully comply with this Order, the
Court will remand the case for lack of subject matter jurisdiction.
Accordingly,
IT IS HEREBY ORDERED that, by May 23, 2018, defendants shall file an
amended notice of removal that shall allege facts establishing the citizenship of the
plaintiff’s limited liability company members.

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IT IS FURTHER ORDERED that if defendants do not timely and fully comply
with this order, this matter will be remanded for lack of subject matter jurisdiction.

So ordered this

9th

day of May 2018.

STEPHEN N. LIMBAUGH, JR.
UNITED STATES DISTRICT JUDGE

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