Neuman v. Garcia

Background

The complaint invoked federal diversity jurisdiction. It alleged that plaintiff Phil Neuman is a citizen of Nevada. It identified Carlisle Acquisition Vehicle, LLC and Pillo Portsmouth Holding Company, LLC as Delaware limited liability companies, but did not allege the citizenship of their members. For diversity purposes, a limited liability company has the citizenship of each of its members.

The complaint also described Carlisle Investment Group, S.à r.l. as a Luxembourg private liability company that maintains offices in Luxembourg, but did not expressly allege that Luxembourg was its place of incorporation and principal place of business. It described Pillo Financial Consulting Corp. as a District of Columbia corporation that does not maintain offices other than through its registered agent, Jose Garcia, in the District of Columbia, but did not expressly allege that its principal place of business was in the District of Columbia.

Analysis

The court explained that federal courts have limited subject-matter jurisdiction, meaning authority to hear particular types of cases. It concluded that the complaint did not adequately allege the citizenship information needed to establish diversity jurisdiction. The court did not decide the underlying claims.

Ruling

Within 14 days of the order, plaintiffs may serve the limited liability company defendants with an interrogatory—written questions—about the citizenship of all natural-person members and, if any member is a corporation, that corporation’s place of incorporation and principal place of business. The defendants must respond within seven days. Within 30 days, the plaintiff must amend the complaint to allege the citizenship of each defendant, or the action will be dismissed for lack of subject-matter jurisdiction. Judge Castel entered the order.