Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_06-cv-02705/USCOURTS-azd-2_06-cv-02705-0/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 28:1332 Diversity-Breach of Contract

---

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Ensenda, Inc., 

Plaintiff, 

vs.

Diamondback Delivery Corporation, 

Defendant. 

)

)

)

)

)

)

)

)

)

)

)

)

No. CV 06-2705–PHX-JAT

ORDER

The complaint in this case alleges jurisdiction based on diversity. In this case, both

plaintiff and defendant are corporations. A corporation is a citizen of every state in which

it is incorporated and the state where it has its principal place of business. Industrial

Tectonics v. Aero Alloy, 912 F.2d 1090, 1092 (9th Cir. 1990) (citing 28 U.S.C. § 1332(c)).

In the Ninth Circuit, a corporation’s principal place of business is defined as the location

where a majority of the corporation's business activity takes place. Id. at 1094. If there is

not a state where a substantial portion of the corporation's business activity occurs, then the

corporation is a resident of the state where the corporations executive and administrative

functions are performed. Id. The burden of proving the facts supporting jurisdiction is on

the party asserting jurisdiction. Id. at 1092 (citations omitted). 

The complaint in this case does not allege a principal place of business for either

plaintiff or defendant. Federal courts may raise the issue of jurisdiction sua sponte. Galvez

Case 2:06-cv-02705-JAT Document 9 Filed 11/20/06 Page 1 of 2
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

- 2 -

v. Kuhn, 933 F.2d 773, 775 n.4 (9th Cir. 1991). Because the Court cannot determine whether

diversity exists, the Court will require Plaintiff to file an amended complaint.

Next, Plaintiff alleges, without more, that "The amount in controversy exceeds the

minimum jurisdictional threshold of the Court." Complaint at 1. "Generally, the amount in

controversy is determined from the face of the pleadings." Crum v. Circus Circus

Enterprises, 231 F.3d 1129, 1131 (9th Cir. 2000). In this case, Plaintiff has failed to allege

any facts to support an amount in controversy. Therefore, the Court will require Plaintiff to

amend the complaint for this additional reason.

Based on the forgoing,

IT IS ORDERED that by noon, November 21, 2006, Plaintiff shall file an amended

complaint which cures the jurisdictional defects of the pending complaint, or this case will

be dismissed for lack of federal subject matter jurisdiction.

IT IS FURTHER ORDERED that, earlier today the Court ordered Plaintiff to

prepare an inventory of the cargo at issue in the motion for temporary restraining order, this

inventory shall also include an approximated value of each item for purposes of determining

the amount of the bond to be posted. See Fed. R. Civ. Pro. 65(c).

DATED this 20th day of November, 2006.

Case 2:06-cv-02705-JAT Document 9 Filed 11/20/06 Page 2 of 2