JMB Shipping ATB 284, LLC v. Unico Commodities LLC, Inc.

Background

JMB Shipping ATB 284, LLC sued Unico Commodities LLC, Inc. The complaint relied on diversity jurisdiction under 28 U.S.C. § 1332(a)(1), which allows a federal court to hear certain disputes between citizens of different states.

The opinion states that JMB Shipping described itself as a Delaware limited liability company and described Unico as a Texas company. For diversity jurisdiction, a limited liability company is treated as a citizen of every state where its members are citizens.

Court’s Reasoning

The court held that the complaint did not adequately establish diverse citizenship. JMB Shipping had not identified its members or alleged their citizenship. The complaint also did not say whether Unico was a limited liability company or a corporation. If Unico was an LLC, the complaint would need to identify its members and allege their citizenship as well.

Disposition

Judge Hellerstein dismissed the complaint for lack of jurisdiction, with leave to replead an adequate basis for diverse citizenship no later than 30 days after the order. The court stated that JMB Shipping could not make any other amendments. After an amended complaint adequately alleges diverse citizenship, Unico may file a motion to dismiss for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6); the court stated that such a motion would be considered fully briefed based on the briefs already filed in connection with the pending motion to dismiss.