Dutra v. Motel 6 Operating L.P.
- Nathanael Cousins
- 5:20-cv-08588
- U.S. District Court · Northern District of California
- 2
In Dutra v. Motel 6, Judge Cousins ordered Motel 6 to explain why the removed case should not be sent back for possible lack of diversity jurisdiction.
Motel 6 must respond to the court’s jurisdictional order by March 24, 2021. Angela Dutra may file an optional reply by March 31, 2021. The case could be returned to state court, but this order does not make that decision.
What happened
Angela Dutra sued Motel 6 Operating L.P. and Joy Aguilar in Monterey County Superior Court. Motel 6 moved the case to federal court, claiming the parties were citizens of different states. The court later dismissed Dutra’s claims against Aguilar without prejudice after Dutra asked it to do so without opposition.
The court questioned whether it had authority to hear the case. Motel 6 is a limited partnership whose members are limited liability companies. The court said Motel 6 had used the citizenship rules for corporations and had not identified the citizenship of each member of those limited liability companies.
In Dutra v. Motel 6 Operating L.P., Judge Nathanael M. Cousins ordered Motel 6 to explain in writing by March 24, 2021, why the case should not be returned to Monterey County Superior Court for lack of subject-matter jurisdiction. Dutra could file an optional reply by March 31, 2021; the order did not itself remand the case.
The detailed version
- Dutra v. Motel 6 Operating L.P. · No. 5:20-cv-08588
- Nathanael Cousins
- Mar. 10, 2021
Background
Angela Dutra filed this action against Motel 6 Operating L.P. and Joy Aguilar in Monterey County Superior Court on November 5, 2020. Motel 6 removed the case to the U.S. District Court for the Northern District of California on December 4, 2020, invoking diversity jurisdiction under 28 U.S.C. § 1332 and removal under 28 U.S.C. § 1441(a). At a March 10, 2021, case-management conference, the court dismissed all claims against Aguilar without prejudice after Dutra made an unopposed request.
Jurisdictional issue
Motel 6 is a limited partnership, and each of its members is a limited liability company. Motel 6 claimed that federal subject-matter jurisdiction existed based on diversity of citizenship. The court explained that citizenship depends on the type of entity. Unlike corporations, limited partnerships and limited liability companies must be analyzed differently for diversity purposes. Although Motel 6 correctly analyzed its citizenship at the limited-partnership level, the court said it also needed to identify the citizenship of every member of each member limited liability company.
Order
The court ordered Motel 6 to show cause in writing by March 24, 2021, why the case should not be remanded to Monterey County Superior Court for lack of subject-matter jurisdiction. Dutra could file an optional reply by March 31, 2021. The opinion is an order to show cause; it does not state that the case was remanded. 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.