FABRICANT v. INTAMIN AMUSEMENT RIDES INT. CORP. EST.
3:19-cv-12900
D.N.J.Jul 24, 2019Background
- Christopher Fabricant was injured on the Kingda Ka roller coaster at Six Flags Great Adventure in New Jersey; he and his wife (Plaintiffs) sued in New Jersey state court.
- Defendant Six Flags Great Adventure, LLC (SFGA) removed the case to federal court, asserting diversity jurisdiction.
- Plaintiffs are New Jersey citizens; SFGA alleged it is an LLC whose sole member is Six Flags Theme Parks, Inc. (SFTP), a Delaware corporation with principal place of business in Texas.
- Plaintiffs named John Does 1–20 (park employees) and argued those fictitious defendants likely are New Jersey citizens and thus defeat diversity.
- Plaintiffs pointed to an earlier unrelated New Jersey case (Huzinec) in which SFGA described itself as a New Jersey LLC and argued SFGA should be judicially estopped from claiming Delaware/Texas citizenship here.
- Plaintiffs sought jurisdictional discovery into (a) the identities/citizenship of the John Does, (b) SFTP’s principal place of business, and (c) whether SFGA is SFTP’s alter ego.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Effect of John Doe defendants on diversity | John Doe employees likely NJ citizens; their citizenship should destroy diversity | John Does are fictitious; their citizenship is to be disregarded under §1441(b)(1) | Court: John Does are fictitious; their citizenship is disregarded and do not destroy jurisdiction |
| SFGA's citizenship | SFGA previously described itself as a NJ LLC; must be treated as NJ citizen | SFGA is an LLC whose sole member is SFTP (DE corp, PPB in TX), so SFGA is a citizen of DE and TX | Court: SFGA’s LLC citizenship follows its corporate member; SFGA is DE and TX (diverse from Plaintiffs) |
| Judicial estoppel based on Huzinec statements | SFGA’s prior statement in Huzinec that it was a NJ LLC bars its current position | Statements are not inconsistent and can coexist; no bad-faith intent to mislead | Court: Judicial estoppel inappropriate—no incompatible positions or bad faith |
| Jurisdictional discovery / alter ego claim | Plaintiffs seek discovery on John Doe identities, SFTP PPB, and alter ego relationship to defeat diversity | SFGA says no factual attack; provided affidavit of SFTP PPB; alter ego claim unsupported | Court: Denied discovery—Plaintiffs raised no factual challenge warranting jurisdictional discovery; alter ego theory unsupported |
Key Cases Cited
- Owen Equipment & Erection Co. v. Kroger, 437 U.S. 365 (superseded on other grounds) (complete diversity requires each plaintiff be a citizen of a different state from each defendant)
- Zambelli Fireworks Mfg. Co., Inc. v. Wood, 592 F.3d 412 (3d Cir. 2010) (LLC citizenship is determined by citizenship of its members)
- Johnson v. Smithkline Beecham Corp., 724 F.3d 337 (3d Cir. 2013) (when an LLC has a corporate member, examine the member-corporation’s state of incorporation and principal place of business)
- Ryan Operations G.P. v. Santiam-Midwest Lumber Co., 81 F.3d 355 (3d Cir. 1996) (judicial estoppel requires inconsistent positions and bad-faith intent)
- Lincoln Benefit Life Co. v. AEI Life, LLC, 800 F.3d 99 (3d Cir. 2015) (distinguishing facial and factual jurisdictional attacks; standards for jurisdictional discovery)
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (deficient pleading under Rule 8 does not entitle plaintiff to discovery)
- Mortensen v. First Fed. Sav. & Loan Ass’n, 549 F.2d 884 (3d Cir. 1977) (procedural standards for factual attacks on jurisdiction)
- Constitution Party v. Aichele, 757 F.3d 347 (3d Cir. 2014) (a factual attack must present competing facts, typically via answer or other evidence)
