Hess Corporation v. Burstnet Technologies, LLC
3:12-cv-00939
M.D. Penn.May 23, 2012Background
- Hess sues Burstnet Technologies, LLC in the Middle District of Pennsylvania alleging federal jurisdiction beauty of diversity.
- Hess is a Delaware corporation with principal place of business in New York, NY.
- Burstnet is described as an LLC with a Scranton, PA address in the complaint.
- The complaint asserts diversity jurisdiction under 28 U.S.C. § 1332.
- The court questions whether Burstnet’s LLC citizenship is properly pled because LLC citizenship rests on members’ citizenships.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does the complaint establish complete diversity between parties? | Hess is diverse from Burstnet if Burstnet’s members are non-Delaware/PA. | Burstnet’s LLC citizenship is not clearly pled by member states. | No complete diversity established; jurisdiction lacking. |
| Can the court cure jurisdictional defects under § 1653 with an amended complaint? | Amendment can cure insufficient jurisdictional allegations. | Court should dismiss if jurisdictional facts remain defective. | Plaintiff may amend within 21 days to attempt to cure diversity; otherwise dismissal. |
Key Cases Cited
- Meritcare Inc. v. St. Paul Mercury Ins. Co., 166 F.3d 214 (3d Cir. 1999) (sua sponte jurisdiction concerns in federal courts)
- Owen Equip. & Erection Co. v. Kroger, 437 U.S. 365 (S. Ct. 1978) (complete diversity required for § 1332(a)(1))
- Packard v. Provident Nat'l Bank, 994 F.2d 1039 (3d Cir. 1993) (burden on proponent to show jurisdiction at all stages)
- Thomas v. Bd. of Trs., 195 U.S. 207 (1895) (lack of jurisdiction cannot be overlooked)
- Carlsberg Res. Corp. v. Cambria Sav. & Loan Ass'n, 554 F.2d 1254 (3d Cir. 1977) (resolve doubts about federal authority before merits)
- Zambelli Fireworks Mfg. Co. v. Wood, 592 F.3d 412 (3d Cir. 2010) (citizenship of LLC depends on members' citizenships)
- Carden v. Arkoma Assocs., 494 U.S. 185 (1990) (diversity jurisdiction for an artificial entity depends on members)
- USX Corp. v. Adriatic Ins. Co., 345 F.3d 190 (3d Cir. 2003) (section 1653 allows remedy of inadequate jurisdictional allegations)