Golden Eagle Insurance Corporation v. Broan Nutone, LLC
5:20-cv-00292
C.D. Cal.Feb 20, 2020Background
- On Jan 10, 2020 Golden Eagle Insurance Corp. filed suit in Riverside County Superior Court alleging negligence, products liability, and indemnification/subrogation against Broan‑Nutone, LLC.
- Defendant removed the action to federal court on Feb 13, 2020, invoking diversity jurisdiction under 28 U.S.C. § 1332(a).
- Defendant submitted a declaration stating it is a Delaware LLC with its principal place of business in Wisconsin and is not a California citizen.
- Defendant did not allege the citizenship of each of the LLC’s owners/members.
- The Ninth Circuit requires an LLC’s citizenship to be stated as the citizenship of each member; the removing party bears the burden of establishing federal jurisdiction.
- The court found the removal allegations insufficient and ordered Defendant to show cause by March 3, 2020 why the case should not be remanded for lack of subject‑matter jurisdiction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether federal diversity jurisdiction exists | Plaintiff argues removal is improper because Defendant has not established diversity | Defendant contends it is not a California citizen and removal under § 1332(a) is proper | Court found removal allegations deficient and ordered Defendant to show cause; failure to cure = remand |
| Whether an LLC’s citizenship was adequately pleaded | Plaintiff relies on the requirement that an LLC’s members’ citizenship determine jurisdiction | Defendant provided only LLC formation and principal place of business, not members’ citizenship | Court held that stating only LLC’s state of organization/principal place of business is insufficient under controlling law |
| Who bears the burden of proof for removal jurisdiction | Plaintiff emphasizes the presumption against removal and doubts should result in remand | Defendant must prove jurisdictional facts | Court reiterated the removing party’s burden and the strong presumption against removal |
Key Cases Cited
- Marin Gen. Hosp. v. Modesto & Empire Traction Co., 581 F.3d 941 (9th Cir. 2009) (removing party bears burden to establish federal subject‑matter jurisdiction)
- Gaus v. Miles, Inc., 980 F.2d 564 (9th Cir. 1992) (strong presumption against removal; remand if any doubt exists)
- Johnson v. Columbia Props. Anchorage LP, 437 F.3d 894 (9th Cir. 2006) (an LLC is a citizen of every state of which its owners/members are citizens)
- Kanter v. Warner‑Lambert Co., 265 F.3d 853 (9th Cir. 2001) (an individual’s citizenship is determined by domicile)