Shui v. Prodigy Network, LLC

Background

The complaint bases federal jurisdiction on diversity of citizenship under 28 U.S.C. § 1332. The complaint alleges that Shanling Shui is a citizen of the People’s Republic of China. It names Prodigy Network, LLC and Prodigy Shorewood Domestic Feeder REP Fund, LLC as defendants and alleges that each LLC is organized under Delaware law. It also alleges that none of the LLC members are citizens of the People’s Republic of China.

Jurisdictional issue

For diversity jurisdiction, an LLC has the citizenship of each of its members. The complaint therefore needed to allege the citizenship of the natural persons and entities that make up the membership of both defendant LLCs. The court noted that complete diversity is absent if a plaintiff and defendant share citizenship, including if foreign citizens appear on both sides of the case. The allegations that the LLCs were organized under Delaware law and had no members from the People’s Republic of China did not identify all members’ citizenships and did not resolve whether foreign citizens appeared on both sides.

Order

Judge P. Kevin Castel ordered the plaintiff to serve limited interrogatories—written questions—on both defendant LLCs seeking information about their members’ citizenship within 14 days of the order. The plaintiff must amend the complaint within 30 days. The order states that the action will be dismissed for lack of subject matter jurisdiction if the complaint is not amended. The court did not dismiss the action in this order or decide the underlying claims.