Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-3_08-cv-08007/USCOURTS-azd-3_08-cv-08007-0/pdf.json

Nature of Suit Code: 362
Nature of Suit: Medical Malpractice
Cause of Action: 28:1332 Diversity-Medical Malpractice

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WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Carol Lucarelli, et al., 

Plaintiffs,

vs.

TRC Four Corners Dialysis Clinics,

LLC, et al.,

Defendants.

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No. CV-08-8007-PCT-PGR

 

 ORDER

The United States District Court for the District of Nevada transferred this

removed action to this District pursuant to 28 U.S.C. § 1404(a). In its transfer

order, entered on January 8, 2008, the Nevada court concluded that the parties

are of diverse citizenship as required by 28 U.S.C. § 1332, the sole jurisdictional

basis for the removal of the action from the Nevada state court, based in part on

the fact that plaintiff Carol Lucvarelli is deemed to be a citizen of Arizona based

on her status as the special administratix of the estate of Tsosie June Sr.,

deceased, and that defendant TRC Four Corners Dialysis Clinics, LLC is

incorporated in New Mexico and maintains its principal place of business in

California.

This Court, however, having reviewed the jurisdiction-related allegations in

Case 3:08-cv-08007-PGR Document 42 Filed 04/16/08 Page 1 of 3
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the Notice of Removal and in the Complaint, concludes that insufficient

information has been presented establishing the existence of diversity of

citizenship jurisdiction. This problem exists because the defendant, which as the

removing party has the burden to show that subject matter jurisdiction properly

exists, California ex rel. Lockyer v. Dynegy, Inc., 375 F.3d 831, 838 (9th Cir.

2004), cert. denied, 544 U.S. 974 (2005), failed to properly allege its citizenship in

the Notice of Removal and the necessary information cannot be determined from

the allegations of the Complaint. The defendant, which identifies itself as an

“LLC”, i.e., a limited liability company, merely alleges that is “incorporated under

the laws of the State of New Mexico and maintains its principal place of business

at 601 Hawaii Street, El Segundo, California 90245.” This allegation is

insufficient as a matter of law because a limited liability company is not treated as

a corporation for purposes of determining whether diversity exists under § 1332.

Johnson v. Columbia Properties Anchorage, LP, 437 F.3d 894, 899 (9th Cir. 2006)

("Notwithstanding LLCs' corporate traits, ... every circuit that has addressed the

question treats them like partnerships for the purposes of diversity jurisdiction. ...

We therefore join our sister circuits and hold that, like a partnership, an LLC is a

citizen of every state of which its owners/members are citizens.") What is thus

required in the Notice of Removal are affirmative allegations specifically

identifying each member of the defendant limited liability company and

specifically setting forth each member’s citizenship. 

In order to cure this pleading deficiency in the Notice of Removal, the Court

will require the defendant to file an amended notice of removal that properly

states the citizenship of each party. The defendant is advised that its failure to

timely comply with this order shall result in the remand of this action without

Case 3:08-cv-08007-PGR Document 42 Filed 04/16/08 Page 2 of 3
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further notice for lack of subject matter jurisdiction. Therefore,

IT IS ORDERED that defendant TRC Four Corners Dialysis Clinics, LLC

shall file an amended notice of removal properly stating a jurisdictional basis for

this action no later than May 9, 2008.

DATED this 15th day of April, 2008.

Case 3:08-cv-08007-PGR Document 42 Filed 04/16/08 Page 3 of 3