Laba v. JBO Worldwide Supply Pty Ltd

Background

Remi Laba brought claims against JBO Worldwide Supply Pty Ltd and Orange Butterly Holdings (Mauritius) International Limite for breach of contract and related state-law claims. Laba alleged that the court had diversity jurisdiction under 28 U.S.C. § 1332.

Jurisdictional Deficiency

Diversity jurisdiction requires complete diversity of citizenship. The complaint stated that both defendants were companies with offices in South Africa, but it did not identify whether they were corporations, partnerships, limited partnerships, limited liability companies, limited liability partnerships, or another type of entity. The court explained that the citizenship rules differ depending on the entity’s organizational form. For example, the citizenship of a limited liability company depends on the citizenship of each member, and the citizenship of a limited partnership depends on the citizenship of the relevant partners.

Because the complaint did not provide enough information to determine the defendants’ citizenship, the court could not decide whether diversity jurisdiction existed.

Disposition

The court dismissed the complaint without prejudice for lack of subject-matter jurisdiction under Federal Rule of Civil Procedure 12(h)(3). The court instructed Laba to file an amended complaint adequately alleging a basis for jurisdiction within 30 days of the order’s issuance. Depending on the defendants’ structure, the amended complaint might need to allege the citizenship of each member.

Judge Alvin K. Hellerstein issued the order.