Williamsburg National Insurance Company v. Rivera Trucking LLC
2:21-cv-04236
C.D. Cal.Jun 7, 2021Background
- Williamsburg National Insurance Co. sued Rivera Trucking, LLC and Ohio Security Insurance Co. on May 20, 2021 seeking declaratory relief, equitable contribution, equitable subrogation, and recoupment.
- Plaintiff invoked federal diversity jurisdiction under 28 U.S.C. § 1332 in the Complaint.
- The Complaint alleges Rivera is incorporated in California with its principal place of business in Chino, California, but does not identify Rivera’s owners or members.
- Under controlling precedent, an LLC’s citizenship is the citizenship of each of its owners/members, and complete diversity requires every plaintiff be diverse from every defendant.
- Because the Complaint omitted the members’ citizenships, the Court could not determine whether complete diversity exists.
- The Court issued an order to show cause requiring Plaintiff to explain by June 18, 2021 why the case should not be dismissed for lack of subject-matter jurisdiction; failure to respond would result in dismissal without prejudice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Complaint sufficiently alleges Rivera LLC’s citizenship for § 1332 diversity jurisdiction | Williamsburg asserts diversity jurisdiction and alleges Rivera is a California corporation with PPB in Chino | No argument supplied / Complaint lacks members’ citizenship information | Court found the complaint insufficient and ordered Plaintiff to show cause why the case should not be dismissed for lack of subject-matter jurisdiction |
| Whether the court must independently ensure subject-matter jurisdiction | Williamsburg invokes § 1332 amount and diversity requirements | Not disputed, but factual showing absent | Court reiterated its independent obligation to confirm jurisdiction and demanded plaintiff-level proof of complete diversity |
Key Cases Cited
- Henderson ex rel. Henderson v. Shinseki, 562 U.S. 428 (U.S. 2011) (federal courts have an independent duty to assure they have jurisdiction)
- Newman-Green, Inc. v. Alfonzo-Larrain, 490 U.S. 826 (U.S. 1989) (complete diversity requires each plaintiff be diverse from each defendant)
- Johnson v. Columbia Props. Anchorage, LP, 437 F.3d 894 (9th Cir. 2006) (an LLC is a citizen of every state of which its members/owners are citizens)