Freedom JN, LLC v. Frontiers Records S.r.l.

Background

The defendants removed the case from state court, asserting federal jurisdiction based on the parties’ citizenship. They relied on their good-faith belief that none of Freedom JN, LLC’s members were citizens of Italy, while acknowledging that they lacked actual knowledge of the members’ identities because that information was not publicly available or reasonably ascertainable.

Jurisdictional issue

For a limited liability company, citizenship depends on the citizenship of its members. The court said that allegations made on information and belief satisfied the defendants’ burden for removal under the reasoning of the cited Ninth Circuit decision. But the court also emphasized that it had an independent duty to determine whether federal jurisdiction existed. If any of Freedom JN’s members were citizens of Italy, the court stated that returning the case to state court would be appropriate.

Order

The court ordered Freedom JN to show cause—meaning to explain—why the case should not be remanded. It required Freedom JN to file a declaration addressing its members’ citizenship no later than January 19, 2022. The declaration could be included with Freedom JN’s opposition to the defendants’ pending motion to dismiss or filed separately.

The court did not decide remand in this order, and it did not rule on the pending motion to dismiss. The order was without prejudice to any other argument for remand that Freedom JN might raise in a separate motion. Chief Magistrate Judge Joseph Spero issued the order.