2:20-cv-01626 | C.D. Cal. | Jun 24, 2020
Case 2:20-cv-01626-GW-AS Document 43 Filed 06/24/20 Page 1of3 Page ID #:598
JS-6
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES—GENERAL
Case No. Case No. CV-20-1626-GW-(ASx) Date June 24, 2020
Title Tacsis, LLC v. AGS Assurity, LLC, et al. Page 1 of 3
Present: The Honorable GEORGE H. WU, UNITED STATES DISTRICT JUDGE
Javier Gonzalez None Present
Deputy Clerk Court Reporter
Attorneys Present for Plaintiff(s) Attorneys Present for Defendant(s)
None Present None Present
Proceedings: INCHAMBERS - ORDER DISMISSING ACTION FOR FAILURE TO
ESTABLISH SUBJECT MATTER JURISDICTION
This action was brought on the basis of diversity jurisdiction. See Complaint § 14, Docket
No. 1. Plaintiff was delineated as “TACSIS, LLC is a California Limited Liability Company with
its principal place of business in Los Angeles, California on behalf of Kent Limson, The Carole
A. Machado Revocable Living Trust, Christina Catherine Walton Weston, Matthew M. Basco all
of whom are investors of Plaintiff TACSIS, LLC.”; and defendants were identified as two
individuals whom the Plaintiff believed were residing in Clark County, Nevada, and two Nevada
Limited Liability Companies. Jd. §§ 1-5.
On May 20, 2020, the Court issued an Order to Show Cause re Subject Matter Jurisdiction
(“OSC”). See Docket No. 38. In the OSC, the Court ordered the Plaintiff, by June 4, 2020:
to properly account for the citizenship of the parties in this case. As to the limited
liability companies, this will require identifying the members of those entities and
indicating the citizenship of those members . . . . [noting that it was insufficient to]
simply assert[] that none of the members were citizens of the same state as the
plaintiff... . [And as] to the natural person parties, plaintiffs will have to identify
their states of citizenship, not merely where they reside .... Plaintiffs must also
properly account for the citizenship of the plaintiff trust (if indeed the trust is a
separate plaintiff).
Id. at 1-2 (emphasis in original).
Plaintiff filed an Amended Complaint which lists TACSISI, LLC as the sole plaintiff, and
describes it as a “limited liability company organized and existing under the laws of the state of
California” with all of its “members [being] citizens of California.” See Amended Complaint §§
1, 8-9, Docket No. 39. The defendants are two individuals, who are believed to be citizens of
Nevada, and two LLCs whose members are believed to be citizens of Nevada. Jd. [ 8-15.
CV-90 CIVIL MINUTES—GENERAL Initials of Deputy Clerk JG
Case 2:20-cv-01626-GW-AS Document 43 Filed 06/24/20 Page 2of3 Page ID #:599
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES—GENERAL
Case No. Case No. CV-20-1626-GW-(ASx) Date June 24, 2020
Title Tacsis, LLC v. AGS Assurity, LLC, et al. Page 2 of3
Plaintiff's Amended Complaint does not satisfy the requirements of the OSC. As stated in
the OSC:
As to the limited liability companies, this will require identifying the members of
those entities and indicating the citizenship of those members. See Johnson v.
Columbia Props. Anchorage, LP, 437 F.3d 894" date_filed="2006-02-10" court="9th Cir." case_name="Morris Johnson, Jr. v. Columbia Properties Anchorage, Lp, Morris Johnson, Jr. v. Columbia Properties Anchorage, Lp">437 F.3d 894, 899 (9th Cir. 2006); see also
Lindley Contours, LLC v. AABB Fitness Holdings, Inc., 414 Fed. App’x 62, 64-65
(9th Cir. 2011) (finding defendant LLCs failed to satisfy their burden to show
complete diversity of citizenship, where they failed to state citizenship of LLC
members and instead simply asserted that none of the members were citizens of the
same state as the plaintiff, Oregon); Satarco Kish Trading, LLC v. Wamar Int’]
Grp., LLC, No. CV 15-05206 BRO (JCx), 2015 WL 12656920, *1 (C.D. Cal. Jul.
16, 2015) (noting that proper pleading of LLC citizenship requires identification of
LLC’s owners or members, and allegation of every state of which every owner or
member is a citizen); Airtex Prods., L.P. v. Am. Home Assur. Co., No. ED CV 11-
01198 SJO (DTBx), 2011 WL 4527436, *2 (C.D. Cal. Sept. 16, 2011) (“Without
knowing the identity or citizenship of the members and partners of the Plaintiff
companies, the Court cannot possibly determine whether complete diversity exists
in this case.”); accord Teleflora LLC v. WB Commerce LLC, No. CV 15-07176 SJO
(SHx), 2015 WL 6951707, *1 n.2 (C.D. Cal. Nov. 10, 2015) (citing Lindley, 414
Fed. App’x at 64).
See Docket No. 38 at 1-2 (footnote omitted).
Even if the Court were inclined — as Carolina Casualty Insurance Co. v. Team Equipment,
Inc., 741 F.3d 1082" date_filed="2014-02-04" court="9th Cir." case_name="Carolina Casualty Insurance Co v. Team Equipment, Inc.">741 F.3d 1082, 1087-88 (9th Cir. 2014), may require” — to give the Plaintiff a break with
respect to its failure in regards to the two defendant LLCs (because maybe Plaintiff doesn’t know
who their members are,’ and the defendants admit in their amended answer that all of the members
! The Court is aware that in in their Answer to the Amended Complaint, the defendants admit that “all
members of AGS ASSURETY, LLC, are citizens of Nevada” and “all members of ALL NET, LLC, are citizens of
Nevada.” See defendants’ Answer §§ 11, 13, Docket No. 42.
? In Lindsay, the Ninth Circuit held that the case fell within an “unusual circumstance” where the plaintiff
had demonstrated that it could not allege the citizenship of two LLCs because plaintiff “explained in its motion for
reconsideration that it had made efforts to determine the citizenship of the two LLCs and four of the eight individual
defendants but it was unable to do so from publicly available information.” 741 F.3d 1082" date_filed="2014-02-04" court="9th Cir." case_name="Carolina Casualty Insurance Co v. Team Equipment, Inc.">741 F.3d at 1087. Plaintiff herein has not
made any such showing.
3 Under NRS 86.263, a Nevada LLC at the time of its filing articles of organization with the Secretary of
State (and annually thereafter) must include a list containing, infer alia, the “names and titles of all of its managers or,
CV-90 CIVIL MINUTES—GENERAL Initials of Deputy Clerk JG
Case 2:20-cv-01626-GW-AS Document 43 Filed 06/24/20 Page 3 o0f3 Page ID #:600
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES—GENERAL
Case No. Case No. CV-20-1626-GW-(ASx) Date June 24, 2020
Title Tacsis, LLC v. AGS Assurity, LLC, et al. Page 3 of3
— whoever/whatever they are — are citizens of Nevada), Plaintiff does not identify its own members,
merely stating that they are all citizens of California, which the Court has explicitly indicated was
not sufficient. Surely Plaintiff has no information-deficiency with respect to its own members.
In its May 20, 2020 order, the Court was quite clear that it expected Plaintiff to both identify
the members of any LLC (which obviously included the plaintiff LLC) and indicate those
members’ citizenships. Plaintiff has not done so. The Court dismisses this action for failure to
establish diversity jurisdiction.
if there is no manager, all of its managing members [and the] address, either residence or business, of each manager
or managing member listed, following the name of the manager or managing member.”
CV-90 CIVIL MINUTES—GENERAL Initials of Deputy Clerk JG