Minor v. The Bank of New York Mellon

Background

Evette Minor filed the action in the California Superior Court for Sonoma County. The Bank of New York Mellon and Specialized Loan Servicing, LLC (SLS) removed the case to federal court, asserting diversity jurisdiction under 28 U.S.C. § 1332. Diversity jurisdiction generally requires that opposing parties be citizens of different states.

The notice of removal stated that no defendant was a citizen of the same state as Minor, whom the notice described as a California resident. For SLS, the notice stated only that it was organized in Delaware and had its principal place of business in Highlands Ranch, Colorado.

Jurisdictional issue

The court explained that, under Ninth Circuit precedent, a limited liability company is a citizen of every state in which its owners or members are citizens. It is not treated like a corporation whose citizenship depends on its state of organization and principal place of business. The notice of removal did not identify SLS’s members or provide evidence showing whether any member was a California citizen.

Order

The court ordered the parties to show cause—meaning to explain—why the case should not be remanded to state court for lack of jurisdiction. Because Minor had a pending application for a temporary restraining order concerning a trustee’s sale scheduled for December 30, 2019, the court required responses by 11:00 a.m. Pacific time on December 24, 2019, with evidence sufficient to determine whether any SLS member was a California citizen. The opinion did not itself remand the case.