Lindley Contours, LLC v. Aabb Fitness Holdings, Inc.
414 F. App'x 62
| 9th Cir. | 2011Background
- Lindley Contours, LLC appeals district court's dismissal for arbitration and we consider sua sponte whether subject matter jurisdiction exists.
- Action was originally filed in Oregon state court and removed to federal court under 28 U.S.C. § 1441 based on diversity under § 1332(a)(1).
- Plaintiff is an Oregon citizen; defendants purportedly citizen of other states; two defendants are LLCs and one is a limited partnership.
- Removal failed to state the citizenship of the partners/members of Pilot Group L.P., Pilot Group GP LLC, and Contours Express, LLC, defeating complete diversity.
- District court did not address jurisdiction sua sponte; the Ninth Circuit directed consideration and potential remand for lack of jurisdiction.
- Even after amending the notice of removal, defendants still failed to allege the citizenship of all members, leaving diversity unresolved.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether removal pleads complete diversity | Lindley argues removal lacks complete diversity due to undisclosed member citizenships. | Appellees contend diversity exists or can be cured by amendment. | Remand lacks subject matter jurisdiction; diversity not established. |
| Whether the case should be remanded to state court | Lindley supports remand for lack of jurisdiction. | Appellees seek federal adjudication of the claims. | Remand to state court directed for lack of jurisdiction. |
Key Cases Cited
- Gaus v. Miles, Inc., 980 F.2d 564 (9th Cir. 1992) (strong presumption against removal jurisdiction; burden on removing party)
- Johnson v. Columbia Props. Anchorage, LP, 437 F.3d 894 (9th Cir. 2006) (definition of citizenship for partnerships and LLCs for diversity)
- Snell v. Cleveland, Inc., 316 F.3d 822 (9th Cir. 2002) (authority to grant leave to amend removal to cure jurisdiction defects)