VMK Enterprise v. Weyerhaeuser Company
3:17-cv-00014
M.D. La.Dec 21, 2017Background
- Plaintiff VMK Enterprise (a Louisiana partnership listing partners Vickey Lott, Kim Hutchinson, Monica Harrison as Louisiana citizens) filed an Unopposed Ex Parte Motion for Leave to file a Second Amended Complaint.
- Original federal jurisdiction was asserted under diversity jurisdiction (28 U.S.C. § 1332).
- Proposed Second Amended Complaint named defendants Weyerhaeuser Company (alleged as a foreign corporation “domiciled in the State of Washington” with its principal place of business in Baton Rouge, Louisiana) and Larry Johnson Trucking, LLC (a Mississippi LLC with principal place in McComb, Mississippi) and individual Larry Johnson.
- The proposed amended pleading failed to properly allege citizenship for Weyerhaeuser (did not state state of incorporation and principal place of business per § 1332(c)) and for Larry Johnson Trucking, LLC (did not identify all members and their citizenships).
- The court noted that partnership citizenship for diversity is determined by the citizenship of each partner and found VMK’s partner allegations adequate.
- The magistrate judge ordered VMK to file, within seven days, a comprehensive amended complaint that independently and fully alleges the citizenship of all parties (including tracing citizenship through any entity-members) to establish diversity jurisdiction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Second Amended Complaint adequately alleges corporate citizenship for Weyerhaeuser | Alleged Weyerhaeuser as a corporation “domiciled in Washington” with principal place of business in Baton Rouge | Defendants did not oppose; court evaluated adequacy under § 1332(c) standards | Insufficient — must plead state of incorporation and principal place of business (per Getty Oil/§ 1332(c)) |
| Whether the LLC defendant's citizenship was properly pleaded | Named Larry Johnson Trucking, LLC and its principal place of business but did not identify members or their citizenships | No opposing factual showings; issue is pleading deficiency | Insufficient — must identify every member and each member’s citizenship (including layered entities) |
| Whether VMK’s partnership citizenship was adequately pleaded | VMK listed its partners and alleged all are Louisiana citizens | No dispute on this point | Sufficient — partnership citizenship determined by partners’ citizenship (International Paper) |
| Consequence of failing to trace citizenship through entity layers | VMK sought leave to amend but did not fully plead citizenship | No opposition; court warned of jurisdictional risk | Court ordered filing of a standalone operative amended complaint within 7 days, warning failure can lead to dismissal for lack of jurisdiction |
Key Cases Cited
- Getty Oil, Div. of Texaco v. Ins. Co. of N. Am., 841 F.2d 1254 (5th Cir. 1988) (corporate citizenship for diversity: state of incorporation and principal place of business)
- Harvey v. Grey Wolf Drilling Co., 542 F.3d 1077 (5th Cir. 2008) (LLC citizenship determined by citizenship of all members)
- Mas v. Perry, 489 F.2d 1396 (5th Cir. 1974) (domicile governs individual citizenship for diversity)
- International Paper Co. v. Denkmann Associates, 116 F.3d 134 (5th Cir. 1997) (partnership citizenship determined by citizenship of each partner)
- Royal Ins. Co. v. Quinn-L Capital Corp., 3 F.3d 877 (5th Cir. 1993) (used as authority for partnership citizenship principles)