Bell v. Iozzo

Background

Renzer Bell, proceeding without a lawyer, brought a damages action against Marc F. Iozzo, Ogden Lincoln, Inc., and Westmont Lincoln, LLC. He invoked diversity jurisdiction under 28 U.S.C. § 1332, which generally requires complete diversity of citizenship between the plaintiff and all defendants and an amount in controversy exceeding $75,000.

Bell alleged that in 2016 the defendants entered into an agreement concerning the purchase of a 2017 Ford F-150 Raptor. According to the complaint, the agreement required the buyer to pay the dealer certain amounts and to remit $1,080 to Bell. The agreement also included a $75,980 liquidated-damages provision. Bell alleged that the defendants bought the vehicle directly from the retailer without making the payments required by the agreement. He sought damages that he stated totaled $80,060 or more.

Jurisdictional Deficiencies

The court concluded that Bell had not met his burden of showing that diversity jurisdiction existed when the case began. Bell alleged that he was a citizen of Georgia, but provided only a mailing address in Georgia in care of another person and did not allege facts showing where he was domiciled—that is, where he maintained his fixed home and intended to remain. The court stated that a mailing address alone was insufficient to establish citizenship.

The court found that Bell adequately alleged that Ogden Lincoln, Inc. was a citizen of Illinois because he alleged that it was organized under Illinois law and had its principal place of business there. The court found, however, that Bell had not adequately pleaded the citizenship of Marc F. Iozzo. Although the allegation that Iozzo was an Illinois resident residing in Westmont, Illinois could be understood as alleging Illinois domicile, the court directed Bell to clarify that allegation.

The court also found that Bell had not adequately pleaded Westmont Lincoln, LLC’s citizenship. A limited liability company is a citizen of every state where its members are citizens. Bell alleged that Westmont Lincoln, LLC was organized under Illinois law and had its principal place of business in Illinois, but he did not identify the company’s members or allege each member’s citizenship.

Order

The court directed Bell to file an amended complaint within 30 days that pleads facts establishing subject-matter jurisdiction. The amended complaint must completely replace the original complaint, so any facts or claims Bell wants to preserve must be repeated. The court stated that Bell could potentially establish diversity jurisdiction by pleading additional facts or by dropping a nondiverse defendant who was not indispensable.

The court did not decide whether the alleged contract was breached or whether Bell was entitled to damages. No summons would issue at that time. If Bell failed to amend within the permitted period and could not show good cause, the action would be dismissed for lack of subject-matter jurisdiction. The court also certified that an appeal would not be taken in good faith and denied Bell permission to appeal without paying the filing fees.