Andrews et al v. JP Morgan Chase Bank NA

Filing 106

ORDER signed by Judge Rudolph T Randa on 1/13/2012. Pursuant to 28 U.S.C. § 1653, the parties must cure their defective jurisdictional allegations within 10 days of the date of this Order. If the parties do nothing within that time frame, this matter will be dismissed for want of jurisdiction. (cc: all counsel)(nts)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF WISCONSIN

FRANK J. ANDREWS, Jr. and
DAVID J. STROUD,
Plaintiffs,
Case No. 09-C-718
-vsJP M ORGAN CHASE BANK, N.A.,
Defendant/Third-Party Plaintiff,
-vsM ILWAUKEE M ILE HOLDINGS, LLC and
M ILWAUKEE M ILE M ARKETING, LLC,
Third-Party Defendants.

DECISION AND ORDER

In reviewing the record in this case for purposes of resolving the pending motion for
summary judgment, the Court has discovered numerous flaws in the parties’ jurisdictional
allegations. The errors are detailed below.
•

In their amended complaint for declaratory relief, Frank Andrews and David
Stroud allege that they “reside” in California. A complaint asserting diversity
jurisdiction must allege citizenship, not merely residence. Meyerson v.
Harrah’s East Chi. Casino, 299 F.3d 616, 617 (7th Cir. 2002).

•

Andrews and Stroud further allege that JP Morgan Chase Bank, N.A. is a
“New York corporation doing business in the Eastern District of Wisconsin.”
To assert diversity jurisdiction over a corporation, the complaint must allege
the state of incorporation and the corporation’s principal place of business.
McCready v. eBay, Inc., 453 F.3d 882, 891 (7th Cir. 2006); 28 U.S.C. §
1332(c)(1).

•

Even though Andrews and Stroud allege that the Bank is a “corporation,” the
Bank’s third-party complaint alleges that it is a “national banking association
organized under the laws of the United States. For purposes of diversity
jurisdiction, it is located in Columbus, Ohio, which is the main office listed in
its articles of association.” This is yet another insufficient jurisdictional
allegation. Firstar Bank, N.A. v. Faul, 253 F.3d 982, 994 (7th Cir. 2001) (“for
purposes of 28 U.S.C. § 1348 a national bank is ‘located’ in, and thus a citizen
of, the state of its principal place of business and the state listed in its
organization certificate”) (emphasis added).

•

Finally, the Bank’s third-party complaint asserts claims against Milwaukee
Mile Holdings (“MMH”) and Milwaukee Mile Marketing (“MMM”), both of
which are Limited Liability Companies (“LLCs”). The Bank alleges that
MMH is a Wisconsin LLC whose “registered agent” is located in Milwaukee.
The Bank also alleges that MMM is a Wisconsin LLC with an address in West
Allis, Wisconsin. The Bank must allege more to invoke diversity jurisdiction.
“For an LP, LLC, or similar organization, the citizenship of every investor
counts. If even one investor in an LP or LLC has the same citizenship as any
party on the other side of the litigation, complete diversity is missing and the
suit must be dismissed.” White Pearl Inversiones S.A. (Uruguay) v. Cemusa,
Inc., 647 F.3d 684, 686 (7th Cir. 2011) (internal citations omitted).

Pursuant to 28 U.S.C. § 1653, the parties must cure their defective jurisdictional
allegations within ten (10) days of the date of this Order. If the parties do nothing within that
time frame, this matter will be dismissed for want of jurisdiction.
Dated at Milwaukee, Wisconsin, this 13th day of January, 2012.
BY THE COURT:

__________________________
HON. RUDOLPH T. RANDA
U.S. District Judge

-2-