Holder, James v. Fraser Shipyards, Inc. et al

Filing 5

ORDER Regarding Jurisdiction. Plaintiff shall have until July 5, 2016 to serve an amended complaint containing good faith allegations sufficient to establish complete diversity of citizenship for purposes of determining subject matter jurisdiction under 28 U.S.C. § 1332; failure to amend timely shall result in prompt dismissal of this matter. Signed by District Judge William M. Conley on 6/20/2016. (jls)

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

JAMES HOLDER,

Plaintiff,

OPINION AND ORDER

v.
16-cv-343-wmc
FRASER SHIPYARDS, INC., NORTHERN
ENGINEERING COMPANY, LLC and THE
INTERLAKE STEAMSHIP COMPANY,
Defendants.

In this lawsuit, plaintiff James Holder claims that defendants, including Northern
Engineering Company, LLC, are liable for injuries he sustained as a result of exposure to
hazardous conditions while working on a “bulk carrier ship.”

Plaintiff invokes this

court’s diversity jurisdiction under 28 U.S.C. § 1332, but because the allegations in the
complaint are insufficient to determine whether diversity jurisdiction actually exists,
plaintiff must file an amended complaint containing the necessary allegations.

OPINION
“Federal courts are of limited jurisdiction.” Int’l Union of Operating Eng’rs, Local
150, AFL-CIO v. Ward, 563 F.3d 276, 280 (7th Cir. 2009). 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, plaintiff contends that diversity jurisdiction exists because (1) the amount of
controversy exceeds $75,000 and (2) the parties are completely diverse.

(Complaint

(dkt. #1) ¶¶ 2-6.) For the latter to be true, however, no plaintiff can be a citizen of the
same state as any defendant. Smart, 562 F.3d at 803. Plaintiff’s allegations with respect
to defendant Northern Engineering Company, LLC prevent this court from determining
whether complete diversity exists.
With respect to that defendant, plaintiff only alleges that “Northern Engineering
Company, LLC is incorporated in Wisconsin, with its principal place of business in
Wisconsin, making it a citizen of Wisconsin pursuant to 28 U.S.C. 1332(c)(1).”
(Complaint (dkt. #1) ¶ 4.) As the Seventh Circuit instructs, however, that information is
irrelevant in determining the citizenship of a limited liability company. Hukic v. Aurora
Loan Servs., 588 F.3d 420, 427 (7th Cir. 2009). Instead, “the citizenship of an LLC is
the citizenship of each of its members.” Camico Mut. Ins. Co. v. Citizens Bank, 474 F.3d
989, 992 (7th Cir. 2007).
Plaintiff’s failure to make any allegations regarding the name or citizenship of any
member of Northern Engineering Company, LLC is fatal to his attempt to invoke this
court’s diversity jurisdiction.

Before dismissing this action for lack of subject matter

jurisdiction, however, plaintiff will be given leave to file within fourteen days an amended
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complaint which establishes subject matter jurisdiction by alleging the name and
citizenship of each member of defendant Northern Engineering Company, LLC.1

ORDER
IT IS ORDERED that:
1) plaintiff shall have until July 5, 2016, to file and serve an amended complaint
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
2) failure to amend timely shall result in prompt dismissal of this matter for lack
of subject matter jurisdiction.
Entered this 20th day of June, 2016.
BY THE COURT:
/s/
__________________________________
WILLIAM M. CONLEY
District Judge

Plaintiff should also keep in mind that if any members of Northern Engineering Company, LLC
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 because “the citizenship of
unincorporated associations must be traced through however many layers of partners or members
there may be.” Meyerson v. Harrah’s E. Chi. Casino, 299 F.3d 616, 617 (7th Cir. 2002).
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