T hi s di s pos i t i on i s notappr opr i a t e f orpubl i c a t i on and i s notpr e c e de nt * e xc e pta s pr ovi de d by9th C i r . R . 36- 3.

T he pa ne l una ni m ous l yc onc l ude s thi s c a s e i s s ui t abl e f orde c i s i on ** w ith o u t o r a l a r g u m e n t. See F ed. R . A pp . P . 34 (a )( 2). NOT F OR P UB L I CAT I ON UN I TE D STATE S C OU RT OF APPE ALS FOR T HE NI NTH CI RC UI T FA D A L M A CH I N I N G CEN TERS, LLC, P la in tif

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e n d a n t- c o u n te r - c la im a n t - A pp el l ee . N o. 10- 56494 D . C . N o. 2: 09 -c v-09 01 9-C A S -E ORDER *

A pp ea l fr om the U ni t ed S t at es D i stri ctC ou rt f o rth e C e n tr a l D is tr ic t o f C a lif o rn ia C hr i s t i naA . S ny de r , D i s tr i c tJudge , P r e s i di ng S ubm i tt e d D e c e m be r7, 2011 ** P a s a d e n a , C a lif

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# FI LED JAN 03 2 012 M OLLY C. DW Y ER, CLERK U . S. C O U R T OF APPE ALST he H on orabl e S uzanne B . C on l on , D i stri ctJudg e f or the U ni t ed ** * S t a t e s D i s tr i c tC ourtf

orthe N orthe rn D i s tr i c tof I l l i noi s , s i tt i ng byde s i gna t i on. B e c au s e A p p e llan ts ’ s up p le m e n ta l b r ie f c o n ta in e da ll o f

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a c ts 1 n e c e s s a ryto e s tab lis h th e c o m p le te c itiz e n s h ip o f th e p a rtie s , it is n o t n e c e s s a ryto t a ke j udi c i a l not i c e of

a nyf urthe rf a c t s orc a s e s . A ppe l l e e s ’ D e c e m be r2, 2012 m o tio n to ta k e ju d ic ia l n o tic e is th e r e f o r e d e n ie d . B oth F adaland M A G ar e partof the sam e s tructure of t i er ed l i m i t ed 2 liab ilityc o m p a n ie s . F a d a l is alim ite dliab ilityc o m p a n yw h o s e s o le m e m b e ris G & L U S A , L L C ; M A G Indu stri alA ut om at i on S ys t em s, L L C i s the sol e m em ber o f G& L US A. B ef ore: P R E G E R S O N and P A E Z , C i rc ui tJudg es , and C O N L O N , D i stri ctJudg e. *** F a da l M a c hi ni ng C e nt e r s , L L C ( “ F a da l ” ) a nd M A G I ndus tr i a l A ut om a t i on S y s t e m s , L L C ( “ M A G ” ) appe a l f r om the di s tr i c tc ourt ’ s j udgm e ntdi s m i s s i ng the ac t i on because a l l cl ai m s are subj ec tt o arbi tra t i on . W e are ob l i gat ed t o con si der s u a s p o n te w h e th e rw e h a v e s u b je c t m a tte rju r is d ic tio n . See A l l state I ns. C o. v. H ug hes , 3 5 8 F . 3 d1 0 8 9 , 1 0 9 3 (9 th C i r. 2 0 0 4 ). B ecau se A p p el l an t s can n o test ab l i sh d iv er sity b etw ee n th e p ar ti es , w e d ism iss th e ap p ea l, v ac ate th e d istrict co u rt’s ju d g m e n t, a n dr e m a n df o rd is m is s a l. I n r e s pons e t o thi s c ourt ’ s or de rt o s ubm i ts uppl e m e nt a l br i e f s a ddr e s s i ng the c itiz e n s h ip o f

th e p a rtie s , A p p e llan ts a d m itte dth a t aD e la w a r e lim ite dliab ility

1 c om pa nyc a l l e d S P M A G H ol di ngs , L L C ow ns 10% of M A G . S P M A G H ol di ngs

2 ha s s i x m e m be r s , i nc l udi ng aD e l a w a r e l i m i t e d pa rtne r s hi p c a l l e d S i l ve rP oi nt C api t alF un d, L P and a D el aw ar e l i m i t ed l i abi l i ty c om pany ca l l ed S P C P G roup II I,L L C . R obe rtJ . O ’ S he a , ac i t i z e n of N e w J e r s e y , i s am e m be rof both S P C P G r oup II I and S i l ver P oi ntC api t alF un d. A pp el l ee M i d-A t l ant i c C N C , Inc. i s aN ew J e r s e yc orpor a t i on. F o r p u rp o ses o f d i v ersi ty j u ri sd i ct i o n , a l i m i t edl i ab i l i ty co rp o rat i o n i s a c itiz e n o f a ll s ta te s w h e r e its m e m b e r s a r e c itiz e n s . Se e J o h n s o n v . C o lu m b ia Pr o p s . An c h o ra g e, LP , 4 3 7 F .3 d8 9 4 , 8 9 9 ( 9 th C ir . 2 0 0 6 ) . A p p el l an t s u rg e th at“ S P M A G H o l d i n g s, L L C ’ s M em b ersh i p In t erest s houl d be di s r e ga r de d f orpurpos e s of

de t e rm i ni ng c i t i z e ns hi p, ” be c aus e the c om pa nyhol ds “ onl yas e ve r e l yf r a c t i ona l i z e d i nt e r e s tw i th no c ontr ol ove rthe d a y - t o - d a yo p e r a t i o n s ” o f MAG. Ap p e l l a n t s e m p h a s i z e th e f a c tth a tS P MAG H ol di ng s’ 10 % m i no ri ty i nt er es ti s l i m i t ed t o “ C l as s B m em bers hi p, ” w hi ch do es note nt i t l e S P M A G H ol di ngs t o “ vot e on orothe rw i s e di c t a t e ” the ope r a t i ons of th e co m p an y. B e c aus e S P M A G H ol di ngs i s am e m be rof M A G I ndus tr i a l A ut om a t i on S y s t e m s , the c ha r a c t e rof i t s m e m be r s hi p i nt e r e s ti s i rr e l e va ntt o the de t e rm i na t i on o f its c itiz e n s h ip . See Ca rden v. A rko m a A sso cs. , 4 9 4 U .S . 1 8 5 , 1 9 2 (1 9 9 0 ) ( “W e have never hel d thatan art i fi ci alent i ty, sui ng or bei ng sued i n i t s ow n n am e, can i nvoke the di ve r s i tyj ur i s di c t i on of the f e de r a l c ourt s ba s e d on the c i t i z e ns hi p of s o m e b u t n o t a ll o f

its m e m b e r s .” ) ; s e e al

s o J ohns on , 4 3 7 F .3 dat 8 9 9 (“[A ]n un i ncorpo ra t ed as soci at i on . . . has the ci t i ze nshi ps of a ll of i t s m em bers . ”)(e m ph as i s a dd ed). S canttho ug h M r. O ’ S hea’ s i nt er es ti n the A pp el l ant s m aybe,

the rul e s gove rni ng s ubj e c tm a tt e rj ur i s di c t i on a r e “ i nf l e xi bl e a nd w i thout exce pt i on . ” Carden , 494 U . S . a t195 ( quot i ng G r e at Southe rn Fi r e P r oof

H ote l C o. v. Jones , 177 U . S . 449, 453 ( 1900) ) . W e the r e f or e c onc l ude tha tboth F a da l a nd M A G a r e c i t i z e ns of

N e w J e r s e ya nd tha tc om pl e t e di ve r s i tyof c i t i z e ns hi p di d not e x is t w h e n th e c o m p la in t w a s f ile d . I n th e ab s e n c e o f

d iv e r s ityo f

c itiz e n s h ip o f

th e p a rtie s , th e d is tr ic t c o u rt d id n o t h a v e s u b

je c t m a tte rju r is d ic tio n a n ds h o u ldh a v e d is m is s e dth e a c tio n . W e th e r e f o r e d is m is s th e ap p e a l, a n dr e m a n dto th e d is tr ic t c o u rt w ith in s tru c tio n s to va c a t e the j udgm e nta nd or de r s a nd di s m i s s the c a s e f orl a c k of

j ur i s di c t i on. A p p e lle e M id - A tlan tic s h a ll r e c o v e rits c o s ts o n ap p e a l. AP P E AL DI S MI S S E D a n d RE MAND E D. T he fi l i ng of thi s O rdershal l se rve a s the court ’ s m andat e.