Best Vinyl et al v. Homeland Vinyl Products

Filing 18

MEMORANDUM DECISION and ORDER TO SHOW CAUSE. Homeland Vinyl is hereby ORDERED to show cause why this case should not be remanded to state court. Homeland Vinyls response, including any motion to amend the notice of removal, is due by 20 days from the date of this Order. The court is aware that there is an outstanding motion to dismiss. Once the court determines that it has jurisdiction here, it will schedule a hearing on that motion. See Order for details. Signed by Judge Clark Waddoups on 3/4/2011. (jtj)

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF UTAH
NORTHERN DIVISION

BEST VINYL, LLC, a Utah limited liability
company, and VANGUARD VINYL, INC., a
Delaware corporation,
Plaintiffs,

ORDER TO SHOW CAUSE and
MEMORANDUM DECISION

vs.

HOMELAND VINYL PRODUCTS, INC., an
Alabama corporation,

Case No. 2:10-CV-1158 CW

Defendant.

“To ensure its Article III power is exercised properly, a federal court must, ‘in every case
and at every stage of the proceeding, satisfy itself as to its own jurisdiction.’” Mires v. United
States, 466 F.3d 1208, 1211 (10th Cir. 2006) (citation omitted). In this case, Defendant
Homeland Vinyl Products, Inc., an Alabama citizen, purports to remove this action pursuant to
28 U.S.C. § 1332, which requires that the parties be citizens of different states and that the
amount in controversy exceed $75,000. Homeland Vinyl’s notice of removal is, however,
insufficient on its face to show that the requirements of § 1332 are met here. In its notice,
Homeland Vinyl asserts that Best Vinyl, LLC is a Utah limited liability corporation with its
principal place of business in Utah. Homeland Vinyl, however, does not allege the state
citizenship of any member of Best Vinyl. But “for entities other than corporations,” the court’s

“diversity jurisdiction in a suit by or against [an] entity depends on the citizenship of. . . each of
its members.” Penteco Corp. Ltd. Partnership-1985A v. Union Gas Sys., Inc., 929 F.2d 1519,
1523 (10th Cir. 1991) (quoting Carden v. Arkoma Assoc., 494 U.S. 185, 189 (1990), (internal
quotations omitted). Until Homeland Vinyl establishes that none of the members Best Vinyl are
Alabama citizens, the court cannot conclude that there is complete diversity here.
Accordingly, Homeland Vinyl is hereby ORDERED to show cause why this case should
not be remanded to state court. Homeland Vinyl’s response, including any motion to amend the
notice of removal, is due by 20 days from the date of this Order. The court is aware that there is
an outstanding motion to dismiss. Once the court determines that it has jurisdiction here, it will
schedule a hearing on that motion.
SO ORDERED this 4th day of March, 2011.
BY THE COURT:

_____________________________
Clark Waddoups
United States District Judge

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