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United States District CourtFor the Northern District of CaliforniaIN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF CALIFORNIA
OCADIAN CARE CENTERS, LLC,
Plaintiff,
v.
CLARENDON NATIONAL INSURANCE
COMPANY,
Defendant
/
No. C-06-4684 MMC
ORDER DIRECTING DEFENDANT TO
SHOW CAUSE WHY ACTION SHOULD
NOT BE REMANDED
Before the Court is the Notice of Removal, filed August 1, 2006, by defendant
Clarendon National Insurance Company, by which defendant seeks to remove a complaint
filed in state court by plaintiff Ocadian Care Centers, LLC.
In the Notice of Removal, defendant alleges the instant complaint is removable on
the basis of diversity jurisdiction. In support of this assertion, defendant alleges the amount
in controversy exceeds $75,000, (see Notice of Removal ¶ 5), and that defendant is
incorporated in New Jersey, with a principal place of business in New York, (see id. ¶ 3).
With respect to the citizenship of plaintiff, defendant alleges that plaintiff is a “California
limited liability company [and] is an entity qualified to do business in the State of California.”
(See id. ¶ 2.)
A limited liability corporation is a “citizen of every state in which its owners/members
are citizens.” See Johnson v. Columbia Properties Anchorage, LP, 437 F. 3d 894, 899 (9th
Case 3:06-cv-04684-MMC Document 10 Filed 08/16/2006 Page 1 of 2
Ocadian Care Centers, LLC v. Clarendon National Insurance Company
Doc. 10
Dockets.Justia.com
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2
Cir. 2006). Here, defendant fails to allege that every owner and every member of plaintiff is
a resident of a state other than New Jersey and New York. Consequently, defendants’
allegations with respect to the citizenship of plaintiff are insufficient to allege the existence
of diversity jurisdiction.
Accordingly, defendant is hereby ORDERED TO SHOW CAU