Vasquez v. Gruma Corporation

Background

Alonso Vasquez filed various state tort claims against Gruma Corporation, Winco Foods, LLC, and unknown defendants identified as Does 1–10 in Humboldt County Superior Court. Gruma Corporation removed the case to federal court, asserting diversity jurisdiction. The opinion states that Vasquez is a citizen of California and Gruma Corporation is a citizen of Nevada.

Jurisdictional Issue

For diversity jurisdiction, the parties must have complete diversity of citizenship. The court noted that an LLC is a citizen of every state where its owners or members are citizens. Gruma Corporation’s removal papers identified Winco Foods, LLC as incorporated under Delaware law and having its principal place of business in Delaware, but did not identify the citizenship of Winco’s members.

The court ordered Gruma Corporation to explain how diversity jurisdiction existed. Gruma responded that Winco Foods, LLC was a resident of California because numerous members were domiciled there. The court concluded that this meant the parties did not have complete diversity and that no other basis for federal subject-matter jurisdiction existed.

Ruling

Because the federal court lacked subject-matter jurisdiction, Judge Jacqueline Scott Corley remanded the action to Humboldt County Superior Court under 28 U.S.C. § 1447. The opinion does not state any further ruling on the state tort claims.