Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_18-cv-05844/USCOURTS-cand-5_18-cv-05844-0/pdf.json

Nature of Suit Code: 220
Nature of Suit: Foreclosure
Cause of Action: 28:1332 Diversity-Other Contract

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Case No. 18-cv-05844 NC 

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United States District Court 

Northern District of California

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

ERIC MCAFEE and MARGUERITE 

MCAFEE, 

Plaintiffs, 

v. 

PHH MORTGAGE CORP., MORGAN 

STANLEY DELTA HOLDINGS, LLC, 

and others, 

Defendants. 

Case No. 18-cv-05844 NC 

ORDER TO DEFENDANTS TO 

SHOW CAUSE RE: SUBJECT 

MATTER JURISDICTION 

 Defendants removed this case from Santa Clara County Superior Court, asserting 

that this Court has subject matter jurisdiction over the case because there is diversity of 

citizenship under 28 U.S.C. § 1332(a)(1). ECF 1. The burden is on the removing 

defendants to establish jurisdiction. If jurisdiction is not established, then the case must be 

remanded back to state court. This is because the federal courts are courts of limited 

jurisdiction. 

Here, defendants assert that diversity of citizenship is established because plaintiffs 

are both California citizens, while defendant PHH Mortgage Corp. is a New Jersey citizen, 

defendant Morgan Stanley Private Bank N.A. is a New York citizen, and defendant 

Morgan Stanley Delta Holdings LLC is incorporated in Delaware with its principal place 

Case 5:18-cv-05844-NC Document 6 Filed 09/25/18 Page 1 of 2
Case No. 18-cv-05844 NC 2 

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United States District Court 

Northern District of California

of business in New York. Notice of Removal, ECF 1, at ¶¶ 4-7. But defendants are 

applying the wrong legal standard for the Morgan Stanley Delta Holdings LLC (Limited 

Liability Company). “Like a partnership” an LLC “is a citizen of every state of which its 

owners/members are citizens.” Johnson v. Columbia Properties Anchorage, LP, 437 F.3d 

894, 899 (9th Cir. 2006). Defendants’ removal notice does not show that the members of 

Morgan Stanley Delta Holdings LLC are citizens of states other than California. 

Consequently, defendants must show cause in a writing filed by October 5, 2018, as 

to why this case should not be remanded to state court for lack of subject matter 

jurisdiction. If plaintiffs wish to respond, they may file a responding brief by October 12. 

 Finally, all parties are asked to file a determination by October 9 as to whether they 

consent to or decline the jurisdiction of a magistrate judge under 28 U.S.C. § 636(c). 

IT IS SO ORDERED.

Dated: September 25, 2018 _____________________________________ 

NATHANAEL M. COUSINS 

United States Magistrate Judge 

Case 5:18-cv-05844-NC Document 6 Filed 09/25/18 Page 2 of 2