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Satellite Works, LLC v. Bankers Insurance Co.

United States District Court, M.D. Louisiana

December 18, 2014

SATELLITE WORKS, LLC AND JANNERO TEMPLE,
v.
BANKERS INSURANCE COMPANY D/B/A BANKERS INSURANCE GROUP

ORDER TO AMEND COMPLAINT

STEPHEN C. RIEDLINGER, Magistrate Judge.

Plaintiffs Satellite Works, LLC and Jannero Temple filed a Complaint asserting subject matter jurisdiction under 28 U.S.C. § 1332, diversity of citizenship. Plaintiffs alleged that Temple is "residing" in St. John the Baptist Parish, Louisiana, and that he is the sole member of Satellite Works, LLC. Plaintiffs alleged that defendant Bankers Insurance Company is a Florida insurance company "licensed to do an doing business in Louisiana."

When jurisdiction depends on citizenship, the citizenship of each party must be distinctly and affirmatively alleged in accordance with § 1332(a) and (c).[1]

Under § 1332(c)(1) a corporation is deemed to be a citizen of any state in which it is incorporated, and of the state in which it has its principal place of business. For purposes of diversity, the citizenship of a limited liability company is determined by considering the citizenship of all its members.[2] Thus, to properly allege the citizenship of a corporation the party asserting jurisdiction must allege both the state(s) of incorporation and the principal place of business. For a limited liability company, the party asserting jurisdiction must identify each of the entity's members and the citizenship of each member in accordance with the requirements of § 1332(a) and (c).[3] Use of "LLC" in the entity's name usually means the entity is organized as a limited liability company rather than a corporation.

Plaintiffs' jurisdictional allegations are not sufficient to determine whether there is diversity of citizenship. A natural person may reside in state of which he is not a citizen for the purpose of § 1332. Plaintiffs' allegation that Temple "resides" in Louisiana is not equivalent to alleging that he is a Louisiana citizen. Consequently, the same allegation is not sufficient to allege the citizenship of Satellite Works, LLC.

As to defendant Bankers Insurance Company, the plaintiffs failed to allege the state where it has its principal place of business.[4] Where the defendant is licensed to do and does business does not determine its citizenship.

Therefore;

IT IS ORDERED that plaintiffs Satellite Works, LLC and Jannero Temple shall have 10 days to file an amended complaint which properly alleges their citizenship and the citizenship of the defendant.

Failure to comply with this order may result in the case being dismissed without further notice for lack of subject matter jurisdiction.


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