Grange Insurance Association v. McCormick Barstow LLP
1:25-cv-00694
E.D. Cal.Jun 10, 2025Background
- Grange Insurance Association, a Washington corporation, filed a legal malpractice lawsuit against McCormick Barstow LLP in the Eastern District of California.
- Plaintiff alleges subject matter jurisdiction exists under 28 U.S.C. § 1332 (diversity of citizenship).
- For diversity, all plaintiffs must be citizens of states different from all defendants.
- The complaint alleges McCormick Barstow LLP is a limited liability partnership (LLP) based in Fresno, California, but does not specify the citizenship of its partners.
- The district court reviewed the filing sua sponte to determine if subject matter jurisdiction was properly established.
- The court ordered plaintiff to show cause or amend the complaint to address jurisdictional deficiencies within 14 days.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Has plaintiff established complete diversity under § 1332? | Jurisdiction exists; defendant is a California LLP | Not stated | No; plaintiff failed to allege the citizenship of all LLP partners, so complete diversity is not pled. |
| Pleading standard for jurisdictional facts | Not specifically addressed | Not stated | Must affirmatively allege the actual citizenship of all LLP partners for diversity. |
| Court's authority to question jurisdiction sua sponte | Not addressed | Not stated | The court can raise subject matter jurisdiction issues at any time. |
| Deadline for correcting or explaining the deficiency | Should proceed on complaint as pled | Not stated | Plaintiff must show cause or amend the complaint within 14 days or face recommendation for dismissal. |
Key Cases Cited
- Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375 (1994) (burden to establish jurisdiction rests on the party asserting it)
- Caterpillar Inc. v. Lewis, 519 U.S. 61 (1996) (complete diversity required under § 1332)
- Scholastic Ent., Inc. v. Fox Ent. Grp., Inc., 336 F.3d 982 (9th Cir. 2003) (federal courts must dismiss if subject matter jurisdiction is lacking)
- Kanter v. Warner-Lambert Co., 265 F.3d 853 (9th Cir. 2001) (party invoking diversity jurisdiction must allege citizenship specifically)
- Johnson v. Columbia Properties Anchorage, LP, 437 F.3d 894 (9th Cir. 2006) (LLP citizenship determined by citizenship of all partners)