Pleading Diversity of Citizenship

Pleading Diversity of Citizenship

 

A recent decision from a Federal District Court in Indiana succinctly recited what is required in order to plead that there exists diversity of citizenship when one of the parties to the action is a limited liability company. Smith v. Dodson, Cause No.: 2:17-CV-372-TLS, 2019 WL 2526328 (N.D. Ind. June 19, 2019).

This action, originally filed in state court, was removed to federal court based upon the defendant’s assertion that there existed diversity of citizenship. Finding that the notice of removal was deficient with respect to the identification of the defendant LLCs’ citizenship, the court observed that “the name and citizenship of each member of a limited liability company must be identified to determine diversity jurisdiction.” After noting the rule that, where a member of an LLC is themselves an unincorporated association such as another LLC, the names and citizenship of those second (and higher) tier members must be identified, the court wrote:

 

Although the Notice of Removal alleges generally that the members of Defendant Swift Transportation Co. of Arizona, LLC and Defendant Swift Transportation Services, LLC are citizens of Arizona, the Defendants have not identified each member of the limited liability companies. Thus, the Defendants must identify the name and citizenship of each member of each limited liability company defendant as of September 21, 2017.