A Perfect Interval, LLC v. Sentinel Insurance Company, LTD.
ORDER by Magistrate Judge Stephan M. Vidmar DIRECTING Plaintiff to file a Notice, stating the citizenship of each of its members, no later than October 30, 2020. (rcf)
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEW MEXICO
A PERFECT INTERVAL, LLC,
No. 20-cv-0949 JAP/SMV
SENTINEL INSURANCE COMPANY, LTD,
ORDER DIRECTING PLAINTIFF TO FILE NOTICE OF CITIZENSHIP
THIS MATTER is before the Court on review of the entire record. The Court has a duty
to determine sua sponte whether subject-matter jurisdiction exists. See Arbaugh v. Y&H Corp.,
546 U.S. 500, 514 (2006); Tuck v. United Servs. Auto. Ass’n, 859 F.2d 842, 844 (10th Cir. 1988).
The Court, having considered the Notice of Removal [Doc. 1], the Complaint [Doc. 1-1] at 1–12,
the Answer [Doc. 6], other documents in the record, the applicable law, and being otherwise fully
advised in the premises, concludes that more facts are needed to determine the citizenship of
Plaintiff LLC to sustain diversity jurisdiction. Therefore, the Court will order Plaintiff to file a
Notice, stating the citizenship of each and every one of its members no later than October 30, 2020.
On September 17, 2020, Defendant removed this case to federal court, asserting complete
diversity between the parties and that the amount in controversy exceeds $75,000. [Doc. 1] at 2.
In support of its claim of diversity of citizenship, Defendant alleges that it is a “non-resident
insurance company and a Connecticut corporation, with its principal place of business in Hartford,
Connecticut.” [Doc. 1] at 2. Defendant alleges that Plaintiff is a “New Mexico business with its
principal place of business in Bernalillo County, New Mexico.” Id. However, Defendant makes
no allegation about the citizenship of Plaintiff’s members. See id.
The federal statute providing for the removal of cases from state to federal court was
intended to restrict rather than enlarge removal rights. Greenshields v. Warren Petroleum Corp.,
248 F.2d 61, 65 (10th Cir. 1957). Federal courts, therefore, are to strictly construe the removal
statutes and to resolve all doubts against removal. Fajen v. Found. Reserve Ins. Co., Inc., 683 F.2d
331, 333 (10th Cir. 1982).
District courts have original jurisdiction of all civil actions where the amount in
controversy exceeds the sum or value of $75,000, exclusive of interest and costs, and is between
citizens of different States. § 1332(a). When a plaintiff files a civil action in state court over which
the federal district courts would have original jurisdiction based on diversity of citizenship, the
defendant may remove the action to federal court, provided that no defendant is a citizen of the
State in which such action is brought. See 28 U.S.C. § 1441(a), (b).
Determining the citizenship of a limited liability company is different from determining
the citizenship of a corporation under § 1332. A corporation is deemed to be a citizen of the state
in which it is incorporated and in which it maintains its principal place of business. See § 1332(c).
Limited liability companies, however, are treated as partnerships for citizenship purposes and are
therefore citizens of each and every state in which any member is a citizen. Siloam Springs Hotel,
L.L.C. v. Century Sur. Co., 781 F.3d 1233, 1234 (10th Cir. 2015).
Here, the facts set forth in the Notice of Removal [Doc. 1] and the pleadings, [Doc. 1-1]
at 1–12 and [Doc. 6], do not sufficiently establish the citizenship of Plaintiff A Perfect Interval,
LLC, because they fail to allege the citizenship of each of its members. Because the missing
information is in Plaintiff’s possession, in the interests of judicial economy, the Court will order
Plaintiff to supply it.
IT IS THEREFORE ORDERED, ADJUDGED, AND DECREED that no later than
October 30, 2020, Plaintiff file a Notice stating the citizenship of each and every one of its
members, so that this Court can determine whether subject-matter jurisdiction exists based on
diversity of citizenship.
IT IS SO ORDERED.
STEPHAN M. VIDMAR
United States Magistrate Judge
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