United States District Court, N.D. Indiana
OPINION AND ORDER
THERESA L. SPRINGMANN UNITED STATES DISTRICT JUDGE
matter is before the Court sua sponte. The Court must
continuously police its subject-matter jurisdiction. Hay
v. Ind. State Bd. of Tax Comm'rs, 312 F.3d 876, 879
(7th Cir. 2002).
Counterclaimant alleges that the Court's original
subject-matter jurisdiction is based on diversity of
citizenship under 28 U.S.C. § 1332. Diversity
jurisdiction exists when the parties to an action on each
side are citizens of different states, with no defendant a
citizen of the same state as any plaintiff, and the amount in
controversy exceeds $75, 000. 28 U.S.C. § 1332(a)(1). In
this case, the parties dispute whether the amount in
controversy exceeds $75, 000.
diversity of citizenship, the Counterclaimant is a
corporation and the Counterclaim Defendant is a limited
liability company. A limited liability company is analogous
to a partnership and takes the citizenship of its members.
Belleville Catering Co. v. Champaign Mkt. Place,
LLC, 350 F.3d 691, 692 (7th Cir. 2003). If the members
of the limited liability company are themselves limited
liability companies, the counterclaimant must also plead the
citizenship of those members as of the date the counterclaim
was filed. Thomas v. Guardsmark, LLC, 487 F.3d 531,
534 (7th Cir. 2007) (“[A]n LLC's jurisdictional
statement must identify the citizenship of each of its
members as of the date the complaint or notice of removal was
filed, and, if those members have members, the citizenship of
those members as well.”). A corporation, however, is
deemed to be a citizen of every state and foreign state in
which it has been incorporated and the state or foreign state
where it has its principal place of business. 28 U.S.C.
§ 1332(c)(1). The term “principal place of
business” refers to the corporation's “nerve
center, ” that is, the place where a corporation's
officers direct, control, and coordinate the
corporation's activities. Hertz Corp. v. Friend,
559 U.S. 77, 92-93 (2010). Counterclaimant Sazze, Inc.,
invoked this Court's diversity jurisdiction by filing an
Indiana state law claim in its federal court Counterclaim. As
the party seeking federal jurisdiction, Sazze, Inc., has the
burden of establishing that subject-matter jurisdiction
exists. Smart v. Local 702 Int'l Bhd. of Elec.
Workers, 562 F.3d 798, 802-03 (7th Cir. 2009).
is insufficient information for the Court to determine the
citizenship of Counterclaim Defendant CouponCabin LLC, which
is necessary to determine whether this Counterclaim properly
invokes this Court's diversity jurisdiction. 28 U.S.C.
§ 1332. The Counterclaim Defendant “is a Delaware
limited liability company and . . . its principal place of
business is in Whiting, Indiana.” (Counterclaim ¶
10, ECF No. 93.) This description is insufficient for the
Court to confirm diversity of citizenship. “Limited
liability companies are unincorporated entities, and, for
diversity purposes, ‘limited liability companies are
citizens of every state of which any member is a
citizen.'” Commonwealth Ins. Co. v. Titan Tire
Corp., 398 F.3d 879, 881 n.1 (7th Cir. 2004). The
Counterclaimant has not identified the members of CouponCabin
LLC, which is necessary to confirm that diversity of
citizenship exists over the Counterclaim. Wise v.
Wachovia Sec., LLC, 450 F.3d 265, 267 (7th Cir. 2006).
Court will also highlight that it is not the residency of an
individual or a limited liability company that matters, but
rather the citizenship of the individual or limited liability
company. See Meyerson v. Harrah's E. Chi.
Casino, 299 F.3d 616, 617 (7th Cir. 2002) (per curiam).
An individual's citizenship depends on his or her
domicile. See Id. Domicile is the place one intends
to remain. Dakuras v. Edwards, 312 F.3d 256, 258
(7th Cir. 2002). As noted above, the citizenship of a limited
liability company is the citizenship of each of its members,
which in turn may be another limited liability company, an
individual, or a corporation.
the Court ORDERS Counterclaimant Sazze, Inc., to submit, on
or before, November 15, 2016, a jurisdictional statement and
supporting brief providing:
members of CouponCabin LLC; and
citizenship of the ...