LaFountaine v. Holiday Al Management Sub

Filing 3

ORDERED: This case will be remanded to state court on October 4, 2017, unless Defendant files an amended notice of removal properly alleging jurisdiction on or before that date re 1 . Signed by Judge Sam E Haddon on 9/27/2017. (HEG)

FILED
SEP 2 7 2017
Clerk, U.S. District Court
District Of Montana
Helena

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MONTANA
HELENA DIVISION
CAROL LAFOUNTAINE, an
individual,
No. CV 17-95-H-SEH
Plaintiff,

ORDER

vs.
HOLIDAY AL MANAGEMENT SUB
LLC, d/b/a Holiday Retirement,
Defendant.

Defendant has removed this action from state court by Notice of Removal
filed September 26, 2017. Diversity jurisdiction is claimed. 1 However, the
requisite diversity of citizenship necessary to establish diversity jurisdiction is not
pleaded in this case.

1

Doc. 1 at~~ 3-5.
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Diversity of citizenship jurisdiction, if it exists, must be grounded in 28
U.S.C. § 1332. That statute provides in pertinent part:
(a) The district courts shall have original jurisdiction of
all civil actions where the matter in controversy exceeds
the sum or value of $75,000, exclusive of interest and
costs, and is between(1) citizens of different States;
28 U.S.C. § 1332 (a)(l) (2012).
It is fundamental that federal jurisdiction cannot be presumed. The diversity

statute requires complete diversity of citizenship between all plaintiffs and all
defendants. 15 JAMES WM. MOORE, ET AL., MOORE'S FEDERAL PRACTICE, §
102.12, at 102-28 (3d ed. 2016). It is to be strictly construed. See City of

Indianapolis v. Chase Nat. Bank of City ofNew York, 314 U.S. 63, 77 (1941)
(citing Healy v. Ratta, 292 U.S. 263, 270 (1934)). A defendant removing a case
from state to federal court has the burden of establishing federal jurisdiction.

Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir. 1992). Federal jurisdiction must
be rejected ifthere is any doubt as to the right of removal in the first instance. Id.
While a limited liability company (LLC) resembles both a partnership and a
corporation, tdfrhey are treated as "partnerships for the purposes of diversity
jurisdiction." Johnson v. Columbia Properties Anchorage, LP, 437 F.3d 894, 899

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(9th Cir. 2006). Therefore, "like a partnership, an LLC is a citizen of every state
of which its owners/members are citizens." Id.
Here, Defendant fails to allege the proper citizenship of Defendant Holiday
Al Management Sub LLC, d/b/a Holiday Retirement. The citizenship of each
individual member is not alleged. It is thus impossible for the Court to determine
whether complete diversity exists.
Fed. R. Civ. P. 12(h)(3) and applicable case law provide that "[t]he
objection that a federal court lacks subject-matter jurisdiction may be raised by a
party, or by a court on its own initiative, at any stage in the litigation, even after
trial and the entry of judgment." Arbaugh v. Y & H Corp., 546 U.S. 500, 506
(2006)( citation omitted).
ORDERED:
This case will be remanded to state court on October 4, 2017, unless
Defendant files an amended notice of removal properly alleging jurisdiction on or
before that date.
DATED this .:{ 'l

tiy

of September, 2017.

~(f?e1ni
United States District Judge
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