Opinion
CIVIL NO. 16-00646 DKW-RLP
12-07-2016
JOSE HENAO Plaintiff, v. HILTON GRAND VACATIONS COMPANY, LLC, et al., Defendants.
ORDER REGARDING SUBJECT MATTER JURISDICTION
On December 6, 2016, Defendant Hilton Grand Vacations Company, LLC ("HGVC") filed a Notice of Removal of the Complaint filed by Plaintiff Jose Henao in Civil No. 16-1-2040-11 from the Circuit Court of the First Circuit, State of Hawaii. The Notice of Removal asserts federal subject matter jurisdiction based solely upon diversity of citizenship under 28 U.S.C. § 1332(a). See Notice of Removal ¶¶ 3-6. Section 1332(a)(1) provides that "the district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs, and is between . . . citizens of different States." In order to satisfy the requirements of Section 1332, there must be complete diversity of citizenship between the opposing parties. Exxon Mobil Corp. v. Allapattah Servs., Inc., 545 U.S. 546, 553 (2005) ("[Section] 1332 . . . requir[es] complete diversity: In a case with multiple plaintiffs and multiple defendants, the presence in the action of a single plaintiff from the same [s]tate as a single defendant deprives the district court of original diversity jurisdiction over the entire action."); Kuntz v. Lamar Corp., 385 F.3d 1177, 1181 (9th Cir. 2004).
The Notice of Removal alleges that Plaintiff is a citizen of Hawaii. Notice of Removal ¶ 4. The Notice of Removal states that complete diversity exists between the parties because:
Defendant HGVC is a corporation organized and existing under the laws of the State of Delaware. Defendant HGVC's corporate headquarters and thus, its princip[al] place of business, was and continues to be in the State of Florida. . . . As such, for the purposes of diversity jurisdiction, Defendant HGVC is deemed to be a citizen of Florida.Notice of Removal ¶ 5 (citing 28 U.S.C. § 1332(c)(1) ("a corporation shall be deemed to be a citizen of any State by which it has been incorporated and of the State where it has its principal place of business. . . .")).
"In cases where entities rather than individuals are litigants, diversity jurisdiction depends on the form of the entity." Johnson v. Columbia Props. Anchorage, LP, 437 F.3d 894, 899 (9th Cir. 2006). From what the Court can discern based upon the Complaint and Notice of Removal, it is unclear whether Defendant HGVC is a corporation, as alleged in the Notice of Removal and Complaint, or, as its name suggests, a limited liability company ("LLC"). "[A]n LLC is a citizen of every state of which its owners/members are citizens." Johnson, 437 F.3d at 899. Thus, to establish diversity jurisdiction, if HGVC is an LLC, the citizenship of all owners and/or members of the LLC must be alleged. Id. That has not yet occurred.
"By contrast, a corporation is a citizen only of (1) the state where its principal place of business is located, and (2) the state in which it is incorporated." Johnson, 437 F.3d at 899 (citing 28 U.S.C. § 1332(c)(1)). --------
As the removing party, HGVC bears the burden of establishing subject matter jurisdiction. Nosie v. Ass'n of Flight Attendants - CWA, AFL-CIO, 722 F. Supp. 2d 1181, 1190 (D. Haw. 2010). The Court may address subject matter jurisdiction sua sponte. Fiedler v. Clark, 714 F.2d 77, 78 (9th Cir. 1983); Fed. R. Civ. P. 12(h)(3).
Based on the foregoing, Defendant HGVC is directed to file, by December 21, 2016, a jurisdictional statement clarifying its entity status, and, if appropriate, identifying the citizenship of its owners/members. If any /// /// /// owners/members of HGVC are themselves LLCs or limited partnerships ("LPs"), HGVC shall identify those LLCs and LPs and specify their citizenship as well.
IT IS SO ORDERED.
Dated: December 7, 2016 at Honolulu, Hawai'i.
/s/_________
Derrick K. Watson
United States District Judge