St. Paul Mercury Ins. Co.
v.
Hershare Fin. Corp.

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISIONNov 2, 2015
Case No. 15 C 9676 (N.D. Ill. Nov. 2, 2015)

Case No. 15 C 9676

11-02-2015

ST. PAUL MERCURY INSURANCE COMPANY, Plaintiff, v. HERSHARE FINANCIAL CORPORATION, STATE BANK OF HERSCHER, SIMS BUSINESS ENTERPRISES LP, WAYNE K. SIMS, PROVEN PARTNERS MANUFACTURING, LLC, and KEVIN M. SIMS, Defendants.


MEMORANDUM ORDER

This newly-filed declaratory judgment action has been assigned to this Court's calendar by this District Court's random assignment system. Although this Court is contemporaneously issuing its customary initial scheduling order, this additional memorandum order is issued sua sponte to request a confirmation of the allegations by plaintiff St. Paul Mercury Insurance Company (self-identified in its Complaint as "Travelers") as to subject matter jurisdiction based on diversity of citizenship.

Complaint ¶ 2 identifies Connecticut as the situs of both facets of Travelers' corporate citizenship under 28 U.S.C. § 1332(c)(1). On the other side of the "v." sign, Complaint ¶¶ 3 through 6 identify one defendant, a bank holding company, as a citizen of both Delaware and Illinois and three of the other defendants -- a state bank and two individuals -- as Illinois citizens. Although all of those allegations are asserted "upon information and belief," there appears to be no ground for questioning their accuracy.

Instead the inquiry made here is as to Complaint ¶ 7's allegations regarding a defendant limited liability company and Complaint ¶ 8's allegations regarding a defendant limited partnership, as to each of which citizenship for diversity jurisdictional purposes must be based on the states of citizenship of all members of the limited liability entities. Because there too the allegations are advanced on information and belief, with Travelers' counsel having been required to rely on second-hand information, this Court's first duty -- to determine the existence of federal subject matter jurisdiction -- calls for verification by defendants themselves.

Accordingly, this memorandum order is issued to request such verification. To that end a copy of this memorandum order is being transmitted to Travelers with a direction that it provide copies to all defendants, and they in turn are ordered to confirm the facts as to their respective states of citizenship by filings with the Clerk of this District Court on or before November 23, 2015:

Thomas Bruton, Clerk
United States District Court
219 South Dearborn Street -- 20th Floor
Chicago, Illinois 60604


/s/
_________


Milton I. Shadur


Senior United States District Judge
Date: November 2, 2015