iGPS Company LLC v. National Wooden Pallet & Container Association
3:11-cv-00108
N.D. Tex.Sep 28, 2011Background
- iGPS Company, LLC sues National Wooden Pallet & Container Association and Bruce N. Schollnick in Dallas, Texas, asserting civil action removed to federal court on diversity grounds exceeding $75,000.
- Court questioned iGPS citizenship on September 7, 2011, finding insufficient information to determine complete diversity after removal.
- Defendants replied September 21, 2011, asserting no additional information about iGPS citizenship and relying on information and belief that iGPS members were not Virginia or DC citizens.
- iGPS is an LLC; its citizenship is determined by the citizenship of all its members.
- Because complete diversity is a prerequisite for federal jurisdiction under 28 U.S.C. § 1332, lack of clear citizenship information triggers remand.
- Court sua sponte remands the action to the 192nd Judicial District Court, Dallas County, Texas for lack of subject matter jurisdiction; pending motions are denied as moot.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is there complete diversity between the parties? | iGPS citizenship is unclear; no definitive diversity established. | Defendants contend diversity exists based on information and belief about iGPS members' states. | No complete diversity established; remand required. |
| Did defendants affirmatively and distinctly allege citizenship to support removal? | Citizenship of iGPS members not adequately pleaded. | Defendants attempted to address the issue but provided no definitive member identities. | Not affirmatively and distinctly alleged; remand required. |
| Should the court remand for lack of subject matter jurisdiction? | Lack of jurisdiction information prevents federal jurisdiction. | Removal was proper based on diversity; missing details should be cureable. | Remand mandatory for lack of subject matter jurisdiction. |
Key Cases Cited
- Stafford v. Mobil Oil Corp., 945 F.2d 803 (5th Cir. 1991) (diversity pleading must be affirmative and distinct)
- Manguno v. Prudential Property & Casualty Ins. Co., 276 F.3d 720 (5th Cir. 2002) (doubts resolved in favor of remand)
- Getty Oil Corp. v. Insurance Co. of North America, 841 F.2d 1254 (5th Cir. 1988) (diversity requires affirmative pleading; cannot infer)
- Howery v. Allstate Ins. Co., 243 F.3d 912 (5th Cir. 2001) (burden to establish jurisdiction rests with the removing party)
- St. Paul Reinsurance Co. v. Greenberg, 134 F.3d 1250 (5th Cir. 1998) (independent duty to determine subject matter jurisdiction)
- Ruhgras AG v. Marathon Oil Co., 526 U.S. 574 (1999) (subject-matter delineations policed by courts on their own initiative)
- McDonal v. Abbott Labs., 408 F.3d 177 (5th Cir. 2005) (federal court may raise subject matter jurisdiction sua sponte)
- Harvey v. Grey Wolf Drilling Co., 542 F.3d 1077 (5th Cir. 2008) (LLC citizenship is determined by members' citizenship)