Background

• Plaintiffs Lilu’s Garden, Ltd. and SLC1, LLC (both described as Colorado LLCs with principal places of business in Denver) filed suit in federal court asserting diversity jurisdiction under 28 U.S.C. § 1332.
• Defendant United Science LLC is described as a Minnesota LLC with its principal place of business in Wisconsin.
• The complaint did not identify the members of any LLC plaintiff or defendant, nor the citizenship of those members.
• The court raised subject-matter jurisdiction sua sponte and explained the controlling rule that an unincorporated entity’s citizenship is determined by the citizenship of all its members.
• The court concluded the pleadings were insufficient to establish diversity because the parties’ member-citizenships were not alleged.
• The court ordered plaintiffs to show cause by a date certain why the case should not be dismissed for lack of subject-matter jurisdiction.

Issues

Key Cases Cited

• Citizens Concerned for Separation of Church & State v. City & County of Denver, 628 F.2d 1289 (10th Cir.) (federal courts must ensure their own jurisdiction and may do so sua sponte)
• Cunningham v. BHP Petroleum Great Britain PLC, 427 F.3d 1238 (10th Cir.) (courts may not proceed without assurance that jurisdiction exists)
• Tuck v. United Servs. Auto. Ass’n, 859 F.2d 842 (10th Cir.) (duty of court to raise jurisdictional issues)
• Ins. Corp. of Ireland v. Compagnie des Bauxites de Guinee, 456 U.S. 694 (U.S.) (parties cannot confer subject-matter jurisdiction by consent)
• Radil v. Sanborn W. Camps, Inc., 384 F.3d 1220 (10th Cir.) (party invoking federal jurisdiction bears burden of establishing it)
• Siloam Springs Hotel, LLC v. Century Sur. Co., 781 F.3d 1233 (10th Cir.) (citizenship of an unincorporated association is the citizenship of all its members)
• United States ex rel. General Rock & Sand Corp. v. Chuska Dev. Corp., 55 F.3d 1491 (10th Cir.) (plaintiff must plead facts essential to show jurisdiction)