0:25-cv-00500
D. MinnesotaApr 29, 2025Background
- Plaintiff Liah Modrow filed suit in Hennepin County District Court against Destination Pet, LLC, operating as Hound Dog Hotel.
- Defendant Destination Pet, LLC removed the case to federal court claiming diversity jurisdiction under 28 U.S.C. § 1332.
- The court twice directed Destination Pet to clarify (via amended notices) the citizenship of all relevant members in its corporate structure, including several foreign entities.
- Destination Pet’s submissions failed to adequately establish the citizenship of all members or to demonstrate that certain foreign entities should be treated as corporations for diversity purposes.
- Destination Pet relied on legal arguments suggesting that its disclosure efforts were sufficient, referencing Third Circuit law on good faith allegations of citizenship.
- The magistrate judge recommended remand to state court for lack of established federal subject-matter jurisdiction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether diversity jurisdiction exists | Not specified | Diversity exists; members' citizenshipfully disclosed | Not established; remand recommended |
| Treatment of foreign entities’ citizenship | Not specified | Foreign entities (S.a.r.l. and SCSp) should be treated as corporations | No; must examine entity specifics, not presume |
| Sufficiency of removal pleadings (citizenship facts) | Not specified | Sufficient good faith effort to identify all members | Insufficient; specific member citizenship required |
| Applicability of Third Circuit’s good-faith pleading | Not specified | Third Circuit standard should excuse lack of info | Not adopted; Defendant-burden to establish diversity |
Key Cases Cited
- Arbaugh v. Y&H Corp., 546 U.S. 500 (federal courts must assure subject-matter jurisdiction exists even if not raised by the parties)
- Carden v. Arkoma Ass’n, 494 U.S. 185 (citizenship of unincorporated associations determined by all members, not by analogy to corporations)
- Owen Equip. & Erection Co. v. Kroger, 437 U.S. 365 (diversity jurisdiction requires complete diversity between all plaintiffs and defendants)
- Barclay Square Props. v. Midwest Fed. Sav. & Loan Ass’n of Minneapolis, 893 F.2d 968 (party invoking diversity must specify citizenship of parties)
- Jet Midwest Int’l Co., Ltd v. Jet Midwest Grp., LLC, 932 F.3d 1102 (courts must examine the specific characteristics of foreign entities to determine their citizenship for diversity purposes)