Delta Communications, LLC v. MCI Communications Services, Inc., 3:10-cv-00980

Delta Communications, LLC sues MCI for breach of contract, open account, quantum meruit, and declaratory/injunctive relief under Illinois law, originally filed in Illinois state court and removed to this district.
Removal is premised on diversity jurisdiction under 28 U.S.C. § 1332 and federal question under § 1331, but the court identifies a flaw in the removal pleading of jurisdictional facts.
Diversity requires: amount in controversy over $75,000 and complete diversity of citizenship between all plaintiffs and defendants.
MCI alleges Delaware incorporation and Oklahoma principal place of business, making it a Delaware/OK citizen; Delta is an Illinois LLC alleged to be headquartered in Illinois, with its citizenship dependent on its members.
The amount in controversy is alleged at $1,650,000, but Delta’s LLC membership citizenship must be pleaded for complete diversity.
The court orders MCI to amend the Notice of Removal to state the citizenship of every Delta member by the deadline of December 31, 2010, otherwise the case will be remanded.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether removal based on diversity is proper	Delta argues lack of complete diversity due to unknown Delta member citizenship.	MCI asserts diversity exists with Delaware/OK citizenship for MCI and Illinois for Delta.	Amended notice required; jurisdiction not properly shown yet.
Whether Delta’s LLC citizenship has been properly pled	Delta's members' citizenship must be disclosed to establish diversity.	MCI contends the complaint and removal notice do not require membership details for initial removal.	Delta membership citizenship must be pleaded; failure requires remand if not amended.
Whether the amount in controversy and jurisdictional bases support federal jurisdiction	N/A (not stated as argument by plaintiff in removal context).	Amount exceeds $75,000 and federal question/diversity may apply, subject to proper pleading of Delta membership.	Subject to proper pleading; current notice insufficient without member citizenship details.

Spivey v. Vertrue, Inc., 528 F.3d 982 (7th Cir. 2008) (burden on removing party to prove subject matter jurisdiction)
Meridian Sec. Ins. Co. v. Sadowski, 441 F.3d 536 (7th Cir. 2006) (diversity jurisdiction requirements and jurisdictional pleading)
McNutt v. General Motors Acceptance Corp. of Ind., 298 U.S. 178 (1936) (principle of federal jurisdiction burden on the removing party)
Thomas v. Guardsmark, LLC, 487 F.3d 531 (7th Cir. 2007) (LLC citizenship is the citizenship of its members)
Intec USA, LLC v. Engle, 467 F.3d 1038 (7th Cir. 2006) (diversity citizenship of LLCs hinges on members)
Cosgrove v. Bartolotta, 150 F.3d 729 (7th Cir. 1998) (interpretation of diversity for LLCs)
Krueger v. Cartwright, 996 F.2d 928 (7th Cir. 1993) (diversity analysis principles)
Howell v. Tribune Entm’t Co., 106 F.3d 215 (7th Cir. 1997) (diversity and jurisdictional considerations in Seventh Circuit)
Hertz Corp. v. Friend, No official reporter citation provided in text (2010) (principles on corporate citizenship and center of gravity for diversity)
Nuclear Eng’g Co. v. Scott, 660 F.2d 241 (7th Cir. 1981) (corporate citizenship for diversity purposes)