Competitive Range Solutions, LLC v. Sechrist
Filing
3
MEMORANDUM (Order to follow as separate docket entry) re 1 Complaint filed by Competitive Range Solutions, LLC.Signed by Honorable A. Richard Caputo on 12/29/16. (jam)
IN THE UNITED STATES DISTRICT COURT
FOR THE MIDDLE DISTRICT OF PENNSYLVANIA
COMPETITIVE RANGE SOLUTIONS,
LLC,
CIVIL ACTION NO. 3:16-cv-02496
(JUDGE CAPUTO)
Plaintiff,
v.
JAMES SECHRIST.,
Defendant.
MEMORANDUM
Presently before the Court is the Complaint filed by Plaintiff Competitive Range
Solutions, LLC. (Doc. 1.) Because the Complaint fails to establish that the Court has subject
matter jurisdiction over this action, it will be dismissed unless Plaintiff can show that diversity
jurisdiction is proper.
I. Background
Plaintiff commenced this action on December 19, 2016. Plaintiff alleges that this Court
has jurisdiction over the action pursuant to 28 U.S.C. § 1332 “because Competitive Range
Solutions, LLC is a resident of a different state from James Sechrist and because the value
of the amount in controversy exceeds $75,000.” (Compl. ¶ 3.) The Complaint also alleges
that “[t]he Defendant, James Sechrist, is an adult individual with a residential address at 205
West High Street, Milford, Pennsylvania 18337.” (Id. ¶ 2) Furthermore, the Complaint asserts
that “[t]he Plaintiff, Competitive Range Solutions, is a limited liability company organized and
existing under the laws of the State of Illinois with a principal place of business located at
2405 N. Green Mount Rd., Suite 560, O’Fallon, Illinois 62269.” ( Id. ¶ 1.)
II. Analysis
Federal courts have an obligation to address issues of subject matter jurisdiction sua
sponte. See Shaffer v. GTE North, Inc., 284 F.3d 500, 502 (3d Cir. 2002) (citing Club
Comanche, Inc. v. Gov't of V.I., 278 F.3d 250, 255 (3d Cir. 2002)). Plaintiff alleges that the
Court’s basis for jurisdiction is pursuant to 28 U.S.C. § 1332. Section 1332(a)(1) gives district
courts original jurisdiction to hear cases where the matter in controversy exceeds the value
of seventy-five thousand dollars ($75,000) and is between citizens of different states. In
order for jurisdiction to exist, there must be complete diversity, meaning that each defendant
must be a citizen of a different state from each plaintiff. Owen Equip. & Erection Co. v.
Kroger, 437 U.S. 365, 373 (1978). Of course, “[t]he person asserting jurisdiction bears the
burden of showing that the case is properly before the court at all stages of the litigation.”
Packard v. Provident Nat'l Bank, 994 F.2d 1039, 1045 (3d Cir. 1993).
“It is . . . well established that when jurisdiction depends upon diverse citizenship the
absence of sufficient averments or of facts in the record showing such required diversity of
citizenship is fatal and cannot be overlooked by the court, even if the parties fail to call
attention to the defect, or consent that it may be waived.” Thomas v. Bd. of Trs., 195 U.S.
207, 211 (1904). Moreover, “[w]hen the foundation of federal authority is, in a particular
instance, open to question, it is incumbent upon the courts to resolve such doubts, one way
or the other, before proceeding to a disposition of the merits.” Carlsberg Res. Corp. v.
Cambria Sav. & Loan Ass’n, 554 F.2d 1254, 1256 (3d Cir. 1977); see also Fed R. Civ. P.
12(h)(3).
A.
Citizenship of Plaintiff Competitive Range Solutions, LLC
The Complaint fails to adequately allege the citizenship of Plaintiff. For purposes of
2
diversity jurisdiction, the citizenship of a limited liability company is determined by the
citizenship of each of its members. Zambelli Fireworks Mfg. Co., Inc. v. Wood, 592 F.3d 412,
420 (3d Cir. 2010). The citizenship of an LLC’s members depends on whether a member is
a natural or artificial person. A natural person is deemed to be a citizen of the state where
he is domiciled. Swiger v. Allegheny Energy, Inc., 540 F.3d 179, 182 (3d Cir. 2008) (citing
Gilbert v. David, 235 U.S. 561, 569 (1915)). To be domiciled in a state, a person must reside
there and intend to remain indefinitely. Krasnov v. Dinan, 465 F.2d 1298, 1300-01 (3d Cir.
1972). A natural person may have only one domicile, and thus may be a citizen of only one
state for diversity jurisdiction purposes. See Williamson v. Osenton, 232 U.S. 619 (1914).
A corporation (an artificial person) “is a citizen both of the state where it is incorporated and
of the state where it has its principal place of business.” Zambelli Fireworks Mfg. Co., Inc.,
592 F.3d at 419.
The Complaint alleges that Plaintiff Competitive Range Solutions, LLC is a citizen of
Illinois by virtue of where it is incorporated and where it operates its principal place of
business. This is not sufficient. As noted above, the citizenship of a limited liability company
is determined by the citizenship of each of its members. To properly plead diversity
jurisdiction, Plaintiff must allege the citizenship of each of its members in order to establish
its citizenship. Because the Complaint contains no information about who the members of
Competitive Range Solutions, LLC are or what their citizenship is, it is impossible for the
Court to determine whether diversity jurisdiction exists. See Maxim Crane Works, LP v.
Smith Transp. Servs., Inc., No. 15-597, 2016 WL 757791, at *3 (W.D. Pa. Feb. 26, 2016).
3
B.
Citizenship of Defendant Sechrist
Plaintiff also fails to correctly plead the citizenship of Defendant Sechrist. As explained
above, a natural person is a citizen of the state where he is domiciled. Residence is not the
same as domicile and does not establish citizenship for diversity purposes. See Krasnov,
465 F.2d at 1300 (“Where one lives is prima facie evidence of domicile, but mere residency
in a state is insufficient for purposes of diversity.”) (internal citations omitted). To properly
plead diversity jurisdiction, Plaintiff must allege Defendant’s state of citizenship, not merely
his state of residence. As the Complaint does not contain this fact, the Court cannot
determine whether subject matter jurisdiction exists.
III. Conclusion
Because the Court cannot determine whether subject matter jurisdiction exists, the
matter is subject to dismissal under Federal Rule of Civil Procedure 12(h)(3). However,
Plaintiff will be given an opportunity to amend the Complaint and show that diversity of
citizenship jurisdiction exists. Plaintiff will be granted twenty-one (21) days in which to file an
amended complaint. Failure to do so will result in this action being dismissed.
An appropriate order follows.
December 29, 2016
Date
/s/ A. Richard Caputo
A. Richard Caputo
United States District Judge
4
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?