Free Order to Show Cause - District Court of California - California

Case 3:07-cv-02041-LAB-LSP

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1 2 3 4 5 6 7 8 9 10 11 12 vs. 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Plaintiff Exceptional Innovation, LLC ("Exceptional") filed its complaint in the Court of Common Pleas in Delaware County, Ohio on June 27, 2007. On July 27, 2007, Defendant Kontron America, Inc. removed the action to the U.S. District Court for the Southern District of Ohio, alleging jurisdiction solely on the basis of diversity of citizenship, pursuant to 28 U.S.C. § 1332. Defendant alleged it was a Delaware corporation with its principal place of business at Poway, California (within this District), while Plaintiff was an Ohio Limited Liability -107cv2041

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA

EXCEPTIONAL INNOVATIONS, LLC, Plaintiff,

CASE NO. 07CV2041-LAB (WMc) ORDER TO SHOW CAUSE RE: JURISDICTION

KONTRON AMERICA, INC., Defendant. ________________________________ KONTRON AMERICA, INC., Counter Claimant, vs. EXCEPTIONAL INNOVATION, LLC, Counter Defendant.

Case 3:07-cv-02041-LAB-LSP

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Company with its principal place of business in Ohio, and also alleged the total amount in controversy exceeded $75,000. Thereafter, the action was transferred for venue reasons to this Court. "[F]ederal courts are required sua sponte to examine jurisdictional issues . . . ." B.C. v. Plumas Unified School Dist., 192 F.3d 1260, 1264 (9th Cir. 1999) (citing Bender v. Williamsport Area School Dist., 475 U.S. 534, 541, 106 S.Ct. 1326, 89 LED.2d 501 (1986).) Diversity jurisdiction requires an amount in controversy exceeding $75,000, well as complete diversity of parties. 28 U.S.C. § 1332(a). Under Fed. R. Civ. P. 8(a)(1), a party seeking to invoke the power of a federal court must plead facts essential to show a basis for jurisdiction. Defendant has alleged an amount in controversy exceeding $75,000. However, it has failed to allege Plaintiff's citizenship. While a corporation is a citizen only of the state where its principal place of business is located, and the state in which it is incorporated, 28 U.S.C. § 1332(c)(1), "an unincorporated association such as a partnership has the citizenship of all of its members." Johnson v. Columbia Properties Anchorage, LP, 437 F.3d 894, 899 (9th Cir. 2006) (citing Carden v. Aroma Assoc., 494 U.S. 185, 195­96, 110 S.Ct. 1015, 108 L.Ed.2d 157 (1990)). Limited liability companies are treated as partnerships for purposes of diversity jurisdiction. Id. Because Defendant did not allege the citizenship of Exceptional's members, it appears Defendant has not adequately alleged facts showing jurisdiction. Defendant is therefore ORDERED TO SHOW CAUSE why this action should not be remanded to the Delaware County, Ohio Court of Common Pleas. Defendant may do so by filing a memorandum of points and authorities, no longer than three pages in length, not counting any lodged or appended materials, no later than 21 calendar days from the date this order is entered. Plaintiff may, if it wishes, file a memorandum in reply, no longer than three pages in length, not counting any lodged or appended materials, no later than 28 calendar days from the date this order is entered. /// /// -2-

07cv2041

Case 3:07-cv-02041-LAB-LSP

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Filed 10/30/2007

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Should Defendant fail to show cause as ordered, this action will be remanded without further notice to Defendant.

IT IS SO ORDERED. DATED: October 29, 2007

HONORABLE LARRY ALAN BURNS United States District Judge

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