Kourtni Nicole Beebe v. Nutribullet, L.L.C. et al
2:17-cv-00828
C.D. Cal.Apr 10, 2017Background
- Plaintiff Kourtni Nicole Beebe sued Nutribullet, L.L.C. in federal court asserting state-law claims and invoking diversity jurisdiction under 28 U.S.C. § 1332.
- Complaint alleges plaintiff is a New York citizen and describes Nutribullet as a "California Limited Liability Corporation."
- The complaint did not identify Nutribullet’s members or their citizenships, which is the controlling test for LLC citizenship in diversity cases.
- The court noted that an LLC is a citizen of every state of which its members/owners are citizens, and that an LLC’s state of organization or principal place of business is irrelevant for diversity purposes.
- Because Nutribullet had already appeared in the case, the court ordered Nutribullet to file, under penalty of perjury, a declaration identifying the citizenship of each partner, member, and owner by a specified deadline.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the complaint adequately alleges complete diversity given Nutribullet is an LLC | Alleged Nutribullet is a "California Limited Liability Corporation" (implying California citizenship) | Nutribullet had not yet set forth its members' citizenships; it had appeared and was in a better position to show its citizenship | Complaint insufficiently pled Nutribullet's citizenship; court ordered Nutribullet to file a sworn declaration identifying the citizenship of all members/owners by a deadline |
Key Cases Cited
- Johnson v. Columbia Props. Anchorage, LP, 437 F.3d 894 (9th Cir. 2006) (LLC treated like a partnership and is a citizen of every state of which its members are citizens)
- Grupo Dataflux v. Atlas Global Grp., L.P., 541 U.S. 567 (2004) (a partnership is a citizen of each state of which any partner is a citizen)
- Hart v. Terminex Int’l, 336 F.3d 541 (7th Cir. 2003) (no such thing as a state-designated partnership for diversity; partners' citizenships determine diversity)
- Buschman v. Anesthesia Business Consultants LLC, 42 F.3d 1244 (N.D. Cal. 2014) (an LLC’s principal place of business or state of organization is irrelevant for diversity jurisdiction)