National Indoor RV Centers - GA, LLC v. Jayco, Inc.
1:17-cv-03516
N.D. Ga.Sep 15, 2017Background
- Plaintiff National Indoor RV Centers-GA, LLC sued Jayco, Inc. in Georgia state court alleging violations of the Georgia Recreational Vehicle Franchise Law and sought injunctive relief and damages.
- Defendant removed the action to federal court on diversity grounds under 28 U.S.C. § 1332.
- The federal court must independently verify subject-matter jurisdiction and noted the case raises only state-law claims, so jurisdiction depends on complete diversity and amount in controversy.
- The Notice of Removal described Plaintiff only as a "Georgia limited liability company" and asserted Plaintiff had no members in Indiana, but did not identify all LLC members or their citizenships.
- Because an LLC's citizenship is determined by the citizenship of each member, the Notice was insufficient to establish diversity; the court ordered Defendant to file an amended notice identifying all members and their citizenships by a set deadline.
- The court warned that it must dismiss or remand the action if the required jurisdictional facts are not adequately alleged.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether removal adequately alleges citizenship of an LLC for diversity jurisdiction | Plaintiff asserts jurisdictional facts are plaintiff's burden to prove; removal must show lack of diversity if any | Defendant argued Plaintiff is a Georgia LLC and not a citizen of Indiana, implying diversity exists | Held: Notice insufficient; defendant must identify all LLC members and their citizenships to show diversity |
| Consequence of inadequate jurisdictional allegations in a removal | Plaintiff urges dismissal/remand where jurisdiction not established | Defendant requested leave to amend the notice to supply missing facts | Held: Court ordered amended Notice of Removal with full member/citizenship details and warned dismissal/remand will follow if not cured |
Key Cases Cited
- Arbaugh v. Y & H Corp., 546 U.S. 500 (federal courts must independently ensure subject-matter jurisdiction exists)
- Univ. of S. Ala. v. Am. Tobacco Co., 168 F.3d 405 (courts must inquire into subject-matter jurisdiction at the earliest stage)
- Palmer Hosp. Auth. of Randolph Cnty. v. Hosp. Auth. of Randolph Cnty., 22 F.3d 1559 (complete diversity required)
- MacGinnitie v. Hobbs Group, LLC, 420 F.3d 1234 (citizenship for diversity is determined at time suit is filed)
- King v. Cessna Aircraft Co., 505 F.3d 1160 (burden to show diversity rests on the party asserting jurisdiction)
- Rolling Greens MHP, L.P. v. Comcast SCH Holdings L.L.C., 374 F.3d 1020 (LLC citizenship equals citizenship of each member)
- Travaglio v. Am. Express Co., 735 F.3d 1266 (district court must dismiss for lack of subject-matter jurisdiction unless pleadings/record establish jurisdiction)