Hunter v. Hines Interests LP

Background

Hines Interests Limited Partnership (HILP) removed the action from state court to the Northern District of California on August 16, 2021, asserting that federal jurisdiction existed because the plaintiffs, Whitson Hunter and D’Hante Jackson, were California citizens. The court previously ordered HILP to show cause why the case should not be remanded for lack of subject-matter jurisdiction, specifically because HILP had not established diversity of citizenship.

Jurisdictional Issue

For a limited partnership, citizenship depends on the citizenship of all of its general and limited partners. HILP’s removal notice did not identify those partners’ citizenship. In its response, HILP stated that its limited partnership interests were owned by Hines Global Real Estate Holdings LP, a Delaware limited partnership, and Hines Real Estate Limited Partnership, a Texas limited partnership. It also identified Proj II—Business GP LLC as its general partner and stated that the general partner was owned by Hines Global Real Estate Holdings LP.

HILP did not provide information establishing the citizenship of those entities and their partners. Instead, it stated that each member or partner had its principal place of business in Texas. The court held that this information did not establish the citizenship of a limited partnership for purposes of diversity jurisdiction.

Ruling

Judge Maxine M. Chesney concluded that HILP had failed to establish diversity of citizenship. The court therefore remanded the action to the Superior Court of California, in and for the County of Alameda.