FS Medical Supplies, LLC v. Tannergap, Inc.
- Nathanael Cousins
- 5:21-cv-03017
- U.S. District Court · Northern District of California
- 2
In FS Medical Supplies v. Tannergap, Judge Cousins ordered defendants to explain why the case should not be remanded after questioning diversity jurisdiction.
TannerGap, Inc., Tanner Pharma UK Limited, FS Medical Supplies, LLC, and the other parties were affected by the order. The defendants had to address the citizenship allegations, and all parties had to state whether they consented to or declined magistrate-judge jurisdiction.
What happened
FS Medical Supplies, LLC v. Tannergap, Inc. was filed in state court and removed to federal court by TannerGap, Inc. and Tanner Pharma UK Limited. The defendants said federal jurisdiction existed because the parties had diverse citizenship.
The court questioned that explanation because the defendants treated the limited liability companies like corporations when identifying citizenship. The court said they instead needed to identify every member of FS Medical Supplies and Tanner Pharma UK Limited.
Judge Nathanael M. Cousins ordered the defendants to explain in writing by May 17, 2021, why the case should not be sent back to state court. He also ordered all parties to state by May 24, 2021, whether they consented to or declined a magistrate judge's jurisdiction.
The detailed version
- FS Medical Supplies, LLC v. Tannergap, Inc. · No. 5:21-cv-03017
- Nathanael Cousins
- May 3, 2021
Background
TannerGap, Inc. and Tanner Pharma UK Limited removed the case from Santa Clara County Superior Court on April 26, 2021. In the notice of removal, they asserted that federal diversity jurisdiction existed under 28 U.S.C. § 1332.
Court's Analysis
The court questioned the defendants' citizenship analysis. It explained that limited liability companies and foreign limited companies are treated like partnerships for diversity-jurisdiction purposes, rather than like corporations. The defendants therefore needed to identify the citizenship of every member of FS Medical Supplies, LLC and every member of Tanner Pharma UK Limited, and then evaluate whether diversity jurisdiction existed.
Orders
The court ordered the defendants to show cause in writing by May 17, 2021, why the case should not be remanded to state court. The court also ordered all parties to consent to or decline the jurisdiction of a magistrate judge by May 24, 2021. The opinion does not state that the court had already remanded the case.
Disposition
This was an order to show cause about federal jurisdiction, not a final ruling on remand. The court also issued a separate directive concerning magistrate-judge jurisdiction.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.