Thursday, October 8, 2015
Jurisdiction of Organization Ignored in Determining Citizenship of LLC for Purposes of Diversity Jurisdiction
Jurisdiction of Organization Ignored in Determining Citizenship of LLC
for Purposes of Diversity Jurisdiction
A recent decision from the California District Court, following a long line of similar determinations, has found that the jurisdiction of organization of an LLC is irrelevant in determining diversity citizenship for purposes of diversity jurisdiction Carper v Tribune Media, Case No CV 15-04259 MMM, 2015 WL 5636922 (C.D. Ca. September 28, 2015).
Carper brought suit against Tribune Media and KTLA, LLC, asserting he had been terminated in violation of rules barring age discrimination in employment. Tribune Media removed the case to federal court, and Carper sought remand. The court, based upon a declaration from an executive vice president of human resources of the Tribune Company, found that KTLA is an LLC whose sole member is Tribune LLC, and in turn the sole member of Tribune LLC is Tribune Co., a business corporation incorporated in Delaware with its principal place of business in Illinois. On that basis, the citizenship of KTLA was determined to be that of Delaware and of Illinois.
In reliance upon Johnson v Columbia Props. Anchorage, LP, 437 F.3d 894, 899 (9th Cir. 2006), the court rejected the assertion that the declaration of KTLA citizenship was deficient for failure to provide information regarding “where Tribune LLC was created, where it is presently, or if it is in existence at all.”