Sorensen Companies, Inc. v. B.J. Burns Incorporated
3:17-cv-01095
M.D. Fla.Oct 2, 2017Background
- Petitioner Sorensen Companies, Inc. filed a petition to confirm an arbitration award in federal court alleging jurisdiction under 28 U.S.C. § 1332 (diversity).
- Sorensen alleged it was a corporation organized under Utah law; respondent B.J. Burns, Inc. was alleged to be a Florida corporation.
- Sorensen did not allege its principal place of business.
- The court noted that alleging only state of incorporation is insufficient to establish corporate citizenship for diversity purposes.
- The court has a sua sponte duty to ensure it has subject-matter jurisdiction and must determine whether complete diversity exists.
- The court gave Sorensen a deadline to amend: provide facts establishing its principal place of business by October 20, 2017, so the court can determine diversity jurisdiction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether federal diversity jurisdiction exists | Sorensen: action between a Utah corporation and a Florida corporation creates diversity | No responsive jurisdictional argument presented | Court found pleading insufficient—Sorensen must allege principal place of business to establish citizenship and diversity; ordered supplementation by deadline |
Key Cases Cited
- Am. Motorists Ins. Co. v. Am. Employers’ Ins. Co., 600 F.2d 15 (5th Cir. 1979) (corporate citizenship must be properly pleaded for diversity jurisdiction)
- University of S. Ala. v. American Tobacco Co., 168 F.3d 405 (11th Cir. 1999) (federal courts must inquire into subject-matter jurisdiction sua sponte)
- Hertz Corp. v. Friend, 130 S. Ct. 1181 (2010) (corporation is citizen of state of incorporation and state of its principal place of business)