Carlson, Todd v. Tactical Energetic Entry Systems, LLC et al

Filing 7

ORDER Requiring Proof of Diversity of Citizenship. Defendants have until 4/23/2014 to file and serve an amended notice of removal containing good faith allegations sufficient to establish complete diversity of citizenship. Signed by District Judge William M. Conley on 4/9/2014. (arw)

IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF WISCONSIN

TODD A. CARLSON,
Plaintiff,

OPINION AND ORDER

v.

14-cv-248-wmc

TACTICAL ENERGETIC ENTRY SYSTEMS,
LLC, and MAXUM INDEMNITY COMPANY,
Defendants,
and,
CITIES & VILLAGES MUTUAL INSURANCE
COMPANY,
Subrogated Party.

In this civil action, plaintiff Todd A. Carlson alleges that defendant Tactical
Energetic Entry Systems, LLC (“TEES”) was negligent and violated Wisconsin’s safe
place statute, Wis. Stat. § 101.11, in administering training as part of his employment as
a police officer with the City of Superior Police Department. Carlson also names TEES’s
insurer Maxum Indemnity Company (incorrectly captioned as Maxum Specialty
Insurance Group on the complaint) (“Maxum”), as well as Carlson’s insurer, Cities &
Villages Mutual Insurance Company, as a subrogated party.

(Compl. (dkt. #1-1).)

Invoking this court’s diversity jurisdiction, defendants TEES and Maxum then removed
this action pursuant to 28 U.S.C. § 1446(b) and 28 U.S.C. § 1332(a)(1).

(Not. of

Removal (dkt. #1) p.1 & ¶ 9.) Because the allegations in the notice of removal and
complaint are insufficient to determine whether diversity jurisdiction actually exists,

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defendants will be given an opportunity to file an amended notice of removal containing
the necessary allegations.

OPINION
“Federal courts are courts of limited jurisdiction.” Int’l Union of Operating Eng’r,
Local 150, AFL-CIO v. Ward, 563 F.3d 276, 280 (7th Cir. 2009) (citation omitted).
Unless a complaint alleges complete diversity of citizenship among the parties and an
amount in controversy exceeding $75,000, or raises a federal question, the case must be
dismissed for want of jurisdiction. Smart v. Local 702 Int’l Bhd. of Elec. Workers, 562 F.3d
798, 802 (7th Cir. 2009).

Because jurisdiction is limited, federal courts “have an

independent obligation to determine whether subject-matter jurisdiction exists, even
when no party challenges it.” Hertz Corp. v. Friend, 559 U.S. 77, 94 (2010). Further, the
party seeking to invoke federal jurisdiction bears the burden of establishing that
jurisdiction is present. Smart, 562 F.3d at 802-03.
Here, defendants contend in their notice of removal that diversity jurisdiction
exists because (1) the amount in controversy exceeds $75,000 and (2) the parties are
diverse. (Not. of Removal (dkt. #1) ¶ 3.) For the latter to be true, however, there must
be complete diversity, meaning plaintiff cannot be a citizen of the same state as any
defendant. Smart, 562 F.3d at 803. Defendants’ allegations as to TEES’s citizenship
prevent this court from determining if this is so.
“[T]he citizenship of an LLC is the citizenship of each of its members,” yet
defendants have not alleged sufficient information to determine whether complete

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diversity exists here. Camico Mut. Ins. Co. v. Citizens Bank, 474 F.3d 989, 992 (7th Cir.
2007). Indeed, the notice of removal lacks any allegations regarding the names or the
citizenship of any of defendant TEES’s members. Instead, defendants allege it TEES is
“a Mississippi limited liability company having its principal place of business in Horn
Lake, Mississippi.” (Not. of Removal (dkt. #1) ¶ 7.) The Seventh Circuit instructs that
this information is wholly irrelevant in deciding the citizenship of a limited liability
company. Hukic v. Aurora Loan Serv., 588 F.3d 420, 429 (7th Cir. 2009).
Before dismissing this action for lack of subject matter jurisdiction, defendants will
be given leave to file within 14 days an amended notice of removal which establishes
subject matter jurisdiction by alleging the names and citizenship of each member of its
LLC. In alleging the LLC’s citizenship, defendants should be aware that if any members
of the LLCs are themselves a limited liability company, partnership, or other similar
entity, then the individual citizenship of each of those members and partners must also
be alleged. See Meyerson v. Harrah’s E. Chi. Casino, 299 F.3d 616, 617 (7th Cir. 2002)
(“[T]he citizenship of unincorporated associations must be traced through however many
layers of partners or members there may be.”).

ORDER
IT IS ORDERED that:
1) defendants Tactical Energetic Entry Systems, LLC and Maxum Indemnity
Company shall have until April 23, 2014, to file and serve an amended notice
of removal containing good faith allegations sufficient to establish complete
diversity of citizenship for purposes of determining subject matter jurisdiction
under 28 U.S.C. § 1332; and

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2) failure to amend timely shall result in prompt dismissal of this matter for lack
of subject matter jurisdiction.
Entered this 9th day of April, 2014.
BY THE COURT:
/s/
__________________________________
WILLIAM M. CONLEY
District Judge

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