Admiral Insurance Company v. VPRART, LLC
1:21-cv-21312
S.D. Fla.Apr 7, 2021Background
- Admiral Insurance Company filed a Complaint for Declaratory Relief asserting diversity jurisdiction under 28 U.S.C. § 1332.
- Defendant VPRART, LLC was alleged to be a Florida limited liability company with its principal place of business in Miami, but that allegation was pleaded "upon information and belief."
- The Complaint did not identify VPRART’s members or the citizenship of those members.
- The Court conducted a sua sponte review of subject-matter jurisdiction.
- The Court concluded the diversity allegations were insufficient because an LLC’s citizenship depends on the citizenship of all its members, which were not alleged.
- The case was dismissed without prejudice, with leave to amend to properly allege diversity jurisdiction by a specified deadline.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether federal diversity jurisdiction exists | Alleged VPRART is a Florida LLC with principal place in Miami (diversity exists) | No responsive jurisdictional facts presented | Dismissed for failure to plead members’ citizenship; jurisdiction not shown |
| Whether pleading jurisdictional facts "upon information and belief" is sufficient | Alleged residency "upon information and belief" for VPRART | N/A | Allegations on "information and belief" are insufficient to establish citizenship |
| Whether court may raise subject-matter jurisdiction sua sponte | N/A | N/A | Court may and did address jurisdiction sua sponte and must dismiss if lacking jurisdiction |
Key Cases Cited
- Univ. of S. Ala. v. Am. Tobacco Co., 168 F.3d 405 (11th Cir. 1999) (federal courts limited to Article III jurisdiction; courts must dismiss if without subject-matter jurisdiction)
- Taylor v. Appleton, 30 F.3d 1365 (11th Cir. 1994) (jurisdictional limits and party diversity requirements)
- Xaros v. U.S. Fid. & Guar. Co., 820 F.2d 1176 (11th Cir. 1987) (unincorporated entities are not citizens in their own right)
- Rolling Greens MHP, L.P. v. Comcast SCH Holdings LLC, 374 F.3d 1020 (11th Cir. 2004) (an unincorporated entity’s citizenship depends on the citizenship of all its members)
- Carden v. Arkoma Assocs., 494 U.S. 185 (1990) (limited partnership citizenship rule)
- Ray v. Bird & Son & Asset Realization Co., 519 F.2d 1081 (5th Cir. 1975) (burden of pleading diversity lies with the party invoking federal jurisdiction)
- Herskowitz v. Reid, [citation="187 F. App'x 911"] (11th Cir. 2006) (district court may act sua sponte to address subject-matter jurisdiction)
- Bonner v. City of Prichard, 661 F.2d 1206 (11th Cir. 1981) (Eleventh Circuit adopted pre-1981 Fifth Circuit decisions as binding precedent)