Live Sound & Stage v. Klance Staging, Inc.

Filing 6

ORDER TO SHOW CAUSE why the Court should not remand this action to state court, as to defendant; Show Cause Response due by 4/14/2017, by Judge Robert S. Lasnik. (SWT)

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UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
AT SEATTLE

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LIVE SOUND & STAGE, LLC,

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Plaintiff,
Case No. C17-0514RSL
v.
ORDER TO SHOW CAUSE
KLANCE STAGING, INC.,

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Defendant.

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This matter comes before the Court sua sponte. On March 31, 2017, defendant
removed the above-captioned matter to federal court alleging that the Court has
jurisdiction based on the diversity of citizenship of the parties. See 28 U.S.C. § 1332(a)
(establishing that the federal court’s basic diversity jurisdiction extends to “all civil
actions where the matter in controversy exceeds . . . $75,000 . . . and is between . . .
citizens of different States.”). “For a case to qualify for federal jurisdiction under 28
U.S.C. § 1332(a), there must be complete diversity of citizenship between the parties
opposed in interest.” Kuntz v. Lamar Corp., 385 F.3d 1177, 1181 (9th Cir. 2004)
(internal citation omitted). In examining whether complete diversity is present, the
citizenship of a limited liability company is determined by examining the citizenship of
the owners/members. See Johnson v. Columbia Props. Anchorage, LP, 437 F.3d 894, 899
ORDER TO SHOW CAUSE - 1

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(9th Cir. 2006) (holding that “like a partnership, an LLC is a citizen of every state of

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which its owners/members are citizens”).

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Defendant failed to provide the citizenship of each owner/member of plaintiff Live

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Sound & Stage, LLC. Therefore, defendant has failed to meet its burden to establish the

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basis of the Court’s jurisdiction. See Indus. Tectonics, Inc. v. Aero Alloy, 912 F.2d 1090,

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1092 (9th Cir. 1990) (“The party asserting jurisdiction has the burden of proving all

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jurisdictional facts”); Fed R. Civ. P. 12(h)(3) (“If the Court determines at any time that it

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lacks subject-matter jurisdiction, the court must dismiss the action”). As a result,

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defendant is ORDERED TO SHOW CAUSE by April 14, 2017, why the Court should

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not remand this action to state court by providing the Court with the citizenship of all of

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the owners/members of Live Sound & Stage, LLC, at the time the complaint was filed.

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The Clerk of the Court is directed to place this order to show cause on the Court’s
calendar for April 14, 2017.

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Dated this 4th day of April, 2017.
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A

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Robert S. Lasnik
United States District Judge

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ORDER TO SHOW CAUSE - 2