DeFazio v. Boyden World Corporation
- Jon Tigar
- 4:19-cv-06121
- U.S. District Court · Northern District of California
- 2
In DeFazio v. Boyden World Corporation, Judge Tigar dismissed the case for unresolved diversity jurisdiction, allowing amendment by March 20, 2020.
Jeff DeFazio and the defendants, including Boyden World Corporation, Dick McCallister, and RAM SF LLC, were affected by the dismissal and the opportunity to amend the complaint.
What happened
DeFazio v. Boyden World Corporation concerned whether the complaint properly alleged the parties’ citizenship so the federal court could determine whether it had diversity jurisdiction.
The court found that it still could not determine the citizenship of RAM SF LLC. The information submitted was unclear about whether Dick McCallister was the LLC’s sole member or only its manager, and other records identified William H. Clark Associates, Inc. as the LLC’s sole owner without stating that company’s citizenship.
Judge Jon S. Tigar dismissed the case for lack of subject-matter jurisdiction and gave DeFazio permission to amend the complaint by March 20, 2020. The order said the court would enter judgment and close the file if no amended complaint was filed by that date.
The detailed version
- DeFazio v. Boyden World Corporation · No. 4:19-cv-06121
- Jon Tigar
- Mar. 3, 2020
Background
The complaint did not allege the citizenship of any party. The court had previously ordered plaintiff Jeff DeFazio to explain why the case should not be dismissed for lack of subject-matter jurisdiction. DeFazio’s counsel responded that, if allowed to amend, DeFazio would allege the citizenship of DeFazio and defendants Dick McCallister, RAM SF LLC, and Boyden World Corporation.
Jurisdictional problem
The court focused on RAM SF LLC. DeFazio’s response said that McCallister was an Illinois citizen and the LLC’s sole manager, then stated that the LLC would also be alleged to be an Illinois citizen because its sole member was domiciled there. The court found it unclear whether DeFazio intended to allege that McCallister was the sole member or only the sole manager. The court explained that an LLC’s citizenship depends on the citizenship of its owners or members, while a manager’s citizenship is not relevant unless the manager is also a member.
The record also contained conflicting information. A Secretary of State record showed one manager but did not state the number of members. A defendant disclosure statement said that William H. Clark Associates, Inc. was the sole owner of RAM SF LLC, but the record did not state that corporation’s citizenship.
Ruling
Because the court remained unable to determine RAM SF LLC’s citizenship, it also remained unable to determine whether diversity jurisdiction existed. Judge Jon S. Tigar therefore dismissed the case for lack of subject-matter jurisdiction and allowed DeFazio to amend the complaint by March 20, 2020. If no amended complaint was filed by then, the court stated that it would enter judgment and close the file. The court also continued the case management conference from March 24 to May 26, 2020, and required a joint case management statement by May 19, 2020.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.