Darko Entertainment LLC v. Magnolia Pictures LLC
- Alvin Hellerstein
- 1:20-cv-08166
- U.S. District Court · Southern District of New York
- 1
Judge Hellerstein dismissed Darko Entertainment v. Magnolia Pictures for lack of jurisdiction, allowing 30 days to replead diversity jurisdiction.
Darko Entertainment, LLC, as successor in interest to GBA Film, LLC and You Don’t Know Me Productions, Inc., may replead the jurisdictional allegations within 30 days; Magnolia Pictures, LLC is affected by the dismissal.
What happened
Darko Entertainment, LLC, as successor in interest to GBA Film, LLC and You Don’t Know Me Productions, Inc., sued Magnolia Pictures, LLC, claiming federal jurisdiction based on the parties’ diversity of citizenship.
The court said limited liability companies are citizens of every state where their members are citizens. Because the complaint did not identify either company’s members or their citizenship, the court dismissed the complaint for lack of jurisdiction but allowed Darko Entertainment to replead an adequate basis for complete diversity within 30 days.
Judge Alvin K. Hellerstein issued the October 28, 2020 order. The ruling addressed the court’s jurisdiction and did not decide the underlying dispute.
The detailed version
- Darko Entertainment LLC v. Magnolia Pictures LLC · No. 1:20-cv-08166
- Alvin Hellerstein
- Oct. 28, 2020
Background
Darko Entertainment, LLC, as successor in interest to GBA Film, LLC and You Don’t Know Me Productions, Inc., sued Magnolia Pictures, LLC. The complaint asserted diversity jurisdiction under 28 U.S.C. § 1332. The opinion states that Darko Entertainment is a limited liability company registered in California.
Jurisdictional issue
For diversity jurisdiction, a limited liability company is treated as a citizen of every state in which its members are citizens. The court held that the complaint did not identify the members of either Darko Entertainment or Magnolia Pictures and did not allege those members’ citizenship. As a result, the complaint did not provide an adequate basis for complete diversity of citizenship.
Ruling
The court dismissed the complaint for lack of jurisdiction, with leave to replead an adequate basis for complete diversity of citizenship no later than 30 days from the order. The opinion did not reach the merits of the parties’ underlying dispute. Judge Alvin K. Hellerstein signed the order.
Read the full 1-page opinion on CourtListener, the free public archive maintained by the Free Law Project.