Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_09-cv-01451/USCOURTS-cand-5_09-cv-01451-9/pdf.json

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

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 NO. C 09‐01451 RS

ORDER 

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United 

States District 

Court

For the Northern District of California 

*E-Filed 8/11/10* 

IN THE UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF CALIFORNIA 

SAN JOSE DIVISION 

NATURAL PROTEINS, LLC,

 Plaintiff, 

 v. 

OCEAN PROTEIN, LLC, 

 

 Defendant. 

____________________________________/

No. C 09-01451 RS 

ORDER TO SHOW CAUSE WHY 

ACTION SHOULD NOT BE 

DISMISSED FOR LACK OF 

JURISDICTION AND DENYING 

MOTION FOR LEAVE TO AMEND 

WITHOUT PREJUDICE 

 Plaintiff Natural Proteins, LLC, an Oregon limited liability company initiated this action in 

this court, asserting there was complete diversity of citizenship between it and defendant Ocean 

Protein, LLC, a Washington limited liability company, and that the amount in controversy exceeds 

$75,000. Natural Protein has now moved for leave to amend its complaint to add as defendants the 

individual members of Ocean Protein. In opposition, Ocean Protein asserts that one of those 

members, Pacific Marketing Group, Inc. (“PMG”), is and always has been an Oregon corporation, 

despite allegations in the proposed amended complaint that it is a Washington corporation. Among 

other arguments in opposition to leave to amend, Ocean Protein contends that adding PMG as a 

defendant would destroy diversity jurisdiction. While that may be true if Ocean Protein is correct as 

Case 5:09-cv-01451-RS Document 60 Filed 08/11/10 Page 1 of 2
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 NO. C 09‐01451 RS

ORDER 

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For the Northern District of California 

to where PMG is incorporated, it has overlooked the fact that no diversity jurisdiction exists if PMG 

is an Oregon corporation regardless of whether it is specifically named as a defendant. This is so 

because, for purposes of diversity jurisdiction, the citizenship of a limited liability company is 

determined by looking to the citizenship of all of its members. See Johnson v. Columbia Properties 

Anchorage, LP, 437 F.3d 894, 899 (9th Cir. 2006) (“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.) 

 Accordingly, within 15 days of the date of this order Natural Proteins shall file a brief and 

any supporting declarations showing cause, if any it has, why this action should not be dismissed for 

lack of jurisdiction. Within 10 days thereafter, Ocean Proteins may file a response. The matter shall 

then be submitted without oral argument pursuant to Civil Local Rule 7-1(b). 

 Natural Protein’s motion for leave to amend is denied without prejudice, and the hearing set 

for September 2, 2010 is vacated. Natural Protein may re-file the motion in the event jurisdiction is 

found to exist. 

IT IS SO ORDERED. 

Dated: 8/11/2010 

RICHARD SEEBORG 

UNITED STATES DISTRICT JUDGE 

Case 5:09-cv-01451-RS Document 60 Filed 08/11/10 Page 2 of 2