General Star Indemnity Company v. Jeffers Insurance Agency Inc. et al

Filing 3

ORDER Plaintiff is directed to file an Amended Complaint that adequately alleges the citizenship of the parties so thatthe Court may determine whether there is complete diversity, no later than February 27, 2015. re 1 Complaint, filed by General Star Indemnity Company. Signed by Judge Xavier Rodriguez. (rf)

UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF TEXAS
SAN ANTONIO DIVISION
GENERAL STAR INDEMNITY CO.,
Plaintiff,
VS.
JEFFERS INSURANCE AGENCY, INC.,
ET AL.,
Defendants,

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Civil Action No: SA-15-CA-82-XR

ORDER
On this date, the Court considered its jurisdiction over this case. This Court has a duty to
examine its subject matter jurisdiction, and must do so sua sponte when necessary. Howery v.
Allstate Ins. Co., 243 F.3d 912, 919 (5th Cir. 2001).
Plaintiff General Star Indemnity Company brings this action against Defendant Jeffers
Insurance Agency, Inc., The Alisam Group, LLC, and San Antonio Merchant Shippers, LLC,
asserting diversity jurisdiction. For diversity jurisdiction to be proper, the “court must be certain that
all plaintiffs have a different citizenship from all defendants.” Getty Oil Corp., a Div. of Texaco, Inc.
v. Insur. Co. of N.A., 841 F.2d 1254, 1258 (5th Cir.1988). The party asserting federal jurisdiction
must “distinctly and affirmatively allege” the citizenship of the parties. Howery v. Allstate Ins. Co.,
243 F.3d 912, 919 (5th Cir. 2001); see also Mullins v. TestAmerica, Inc., 564 F.3d 386, 397 (5th Cir.
2009).
According to the Complaint, Defendants The Alisam Group and San Antonio Merchant
Shippers are both limited liability companies. The citizenship of an LLC depends on the citizenship
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of all its members. Tewari De-Ox Systems, Inc. v. Mountain States/Rosen, LLC, 757 F.3d 481, 483
(5th Cir. 2014); Harvey v. Grey Wolf Drilling Co., 542 F.3d 1077, 1080 (5th Cir. 2008) (“All federal
appellate courts that have addressed the issue have reached the same conclusion: like limited
partnerships and other unincorporated associations or entities, the citizenship of a LLC is determined
by the citizenship of all of its members.”). Plaintiff has only alleged the state of organization and
the principal place of business of these Defendants; it has not alleged the citizenship of the members.
Accordingly, it has failed to affirmatively demonstrate that the parties are diverse.
The Fifth Circuit has stated that a failure to adequately allege the basis for diversity
jurisdiction “mandates dismissal.” Stafford v. Mobil Oil Corp., 945 F.2d 803, 805 (5th Cir. 1991).
However, 28 U.S.C. § 1653 grants courts the authority and discretion to allow parties to cure
defective allegations of jurisdiction. Menendez v. Wal-Mart Stores, Inc., 364 F. App’x 62, 66 (5th
Cir. 2010). Section 1653 should be liberally construed to allow a party to cure technical defects,
including the failure to specifically allege the citizenship of the parties. Id. Plaintiff is therefore
directed to file an Amended Complaint that adequately alleges the citizenship of the parties so that
the Court may determine whether there is complete diversity, no later than February 27, 2015.
It is so ORDERED.
SIGNED this 12th day of February, 2015.

_________________________________
XAVIER RODRIGUEZ
UNITED STATES DISTRICT JUDGE

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