Hsieh v. Wu
- Nathanael Cousins
- 5:20-cv-00543
- U.S. District Court · Northern District of California
- 2
In Hsieh v. Wu, Judge Cousins ordered the parties to explain within seven days whether the court has diversity jurisdiction.
The parties to the case, including Daniel Hsieh, Teresa Chiu, Joe Wu, Sunrise Inn Food Plaza, LP, United Venture Regional Center, LLC, and the other defendants identified in the caption; the parties must respond jointly about federal jurisdiction.
What happened
In Hsieh v. Wu, the court questioned whether it has authority to hear the case because the complaint relies on diversity jurisdiction. Diversity jurisdiction generally requires more than $75,000 in dispute and opposing parties who are citizens of different states.
The complaint identified Sunrise Inn Food Plaza, LP, as a California limited partnership and United Venture Regional Center, LLC, as a California limited liability company. But the court explained that those entities’ citizenship depends on the citizenship of their partners or members, not their principal-office locations. The complaint did not provide that information.
The court ordered the parties to file a joint response within seven days explaining why federal jurisdiction exists. Judge Nathanael M. Cousins stated that the case will be dismissed if the court lacks subject matter jurisdiction; the order did not dismiss the case.
The detailed version
- Hsieh v. Wu · No. 5:20-cv-00543
- Nathanael Cousins
- Apr. 21, 2020
Background
Daniel Hsieh and Teresa Chiu sued Joe Wu and others. The complaint asserted diversity jurisdiction under 28 U.S.C. § 1332(a).
Jurisdiction issue
Federal courts have limited jurisdiction, meaning they may hear only the types of disputes authorized by law. Diversity jurisdiction generally requires an amount in controversy exceeding $75,000 and citizenship by the parties in different states.
The court noted that a partnership and a limited liability company are citizens of every state in which their owners or members are citizens. The complaint described Sunrise Inn Food Plaza, LP, as a California limited liability partnership with principal offices in California, and United Venture Regional Center, LLC, as a California limited liability company with principal offices in California. The court explained that the entities’ incorporation and principal-office locations do not establish their citizenship for diversity purposes. The complaint did not identify the citizenship of either entity’s owners or members.
Order
The court ordered the parties to show cause—that is, to explain—why the court has subject matter jurisdiction over the case. It required a joint filing within seven days. The court stated that it will dismiss the case if it lacks subject matter jurisdiction. The order did not itself dismiss the case or decide the underlying dispute. Judge Nathanael M. Cousins signed the order as a United States magistrate judge.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.