Covert v. Bob and Brad, LLC

Background

Michael W. Covert and Ludwiga E. Covert brought a civil case against Bob and Brad, LLC, Robert Schrupp, Brad Heineck, and others in Santa Clara County Superior Court. Bob and Brad, LLC, Robert Schrupp, and Brad Heineck removed the case to the U.S. District Court for the Northern District of California on August 15, 2025.

The defendants asserted that the federal court had diversity jurisdiction under 28 U.S.C. § 1332. Diversity jurisdiction requires complete diversity of citizenship between every plaintiff and every defendant, and an amount in controversy exceeding $75,000. The defendants stated that the plaintiffs were citizens of California; Heineck was a resident of Wisconsin; Schrupp was deceased and had been a resident of Minnesota; Bob and Brad, LLC was organized and had its principal place of business in Minnesota; and Flige Products, LLC was organized and had its principal place of business in Colorado.

Jurisdictional Deficiency

The court explained that an LLC is a citizen of every state of which its owners or members are citizens. The removal notice did not provide the citizenship of the owners or members of Bob and Brad, LLC or Flige Products, LLC. Because that information was missing, the defendants had not established complete diversity. The court found that the removal notice did provide sufficient information to establish that the amount-in-controversy requirement was satisfied.

Order

The court ordered the defendants to show cause by filing a written response by August 29, 2025, explaining why the case should not be remanded to Santa Clara County Superior Court for lack of federal subject matter jurisdiction. The plaintiffs may respond by September 5, 2025. The court noted that a remand for lack of subject matter jurisdiction may include an award of removal-related costs and actual expenses, including attorney’s fees, under 28 U.S.C. § 1447(c), but this order did not award those amounts or remand the case. Judge Nathanael M. Cousins signed the order.