United States District Court, E.D. Missouri, Eastern Division
MEMORANDUM AND ORDER
PATRICIA L. COHEN UNITED STATES MAGISTRATE JUDGE.
matter is before the Court on review of the record.
Family Mutual Insurance Company ("Plaintiff") filed
this action seeking a declaration that certain liability
insurance policies it issued to Miller's Crossing, LLC
("Defendant") covering the period from mid-2011 to
mid-2016 provide no coverage of any claim filed by Heleodoro
Banuelos and others similarly situated in Banuelos v.
Miller's Crossing, LLC, Cause No. 4:15cv01202 RLW
(E.D. Mo. filed Aug. 5, 2015). Plaintiff alleges this Court
"has original [diversity] jurisdiction over this matter
under 28 U.S.C. § 1332(a) because it is a civil action
between citizens of different states and the amount in
controversy exceeds $75, 000, exclusive of interest and
costs." (Compl. para. 6 [ECF No. 1 at 2].) Shortly after
Plaintiff filed this action, Seth A. Albin, Trustee for
Defendant's bankruptcy estate ("Trustee"),
filed a notice suggesting "this action has been stayed
by operation of 11 U.S.C. § 362" [ECF No. 5].
Court "has jurisdiction to determine not only its own
jurisdiction but also . . . whether the proceeding pending
before it is subject to the automatic stay [in
bankruptcy]." Erti v. Paine Webber Jackson &
Curtis, Inc. (In re Baldwin-United Corp. Litigation),
765 F.2d 343, 347 (2d Cir. 1985). Therefore, this Court has
jurisdiction to ascertain whether there is diversity
jurisdiction here, and whether this lawsuit is subject to the
automatic stay in bankruptcy, as suggested by the Trustee.
Subject Matter Jurisdiction.
court diversity jurisdiction . . . requires an amount in
controversy greater than $75, 000 and complete diversity of
citizenship of the litigants." OnePoint Solutions,
LLC v. Borchert, 486 F.3d 342, 346 (8th Cir. 2007)
(citing 28 U.S.C. § 1332(a)). To satisfy the requirement
of complete diversity, "each defendant [must
be] a citizen of a different State from each
plaintiff." Owen Equip. & Erection Co. v.
Kroger, 437 U.S. 365, 373 (1978) (emphasis in original).
Importantly, a limited liability company's citizenship is
the citizenship of all its members. GMAC Commercial
Credit LLC v. Dillard Dep't Stores, Inc., 357 F.3d
827, 829 (8th Cir. 2004).
Plaintiff's allegations are insufficient to establish
complete diversity. Plaintiff alleges it is incorporated and
has its principal place of business in Wisconsin; and that
diversity jurisdiction exists because it is a citizen of
Wisconsin and Defendant is a citizen of Missouri. (Compl.
paras. 1, 2, and 4 [ECF No. 1].) In support of its position
that Defendant is a citizen of Missouri, Plaintiff alleges
that Defendant "is a limited liability company organized
and existing under the laws of the State of Missouri and duly
authorized to do business in the State of Missouri."
(Id. para. 3.) This allegation does not identify any
of Defendant's members or the state of citizenship of
each of Defendant's members. No other allegation, and
nothing else available of record, provides this missing
information regarding Defendant's membership and its
membership's state(s) of citizenship. Without the
required information for each of Defendant's members, the
Court is unable to determine whether complete diversity
exists and whether the Court has subject-matter jurisdiction
over Plaintiff's action.
Trustee urges this matter is subject to the automatic stay in
bankruptcy based on his characterization of this proceeding
as "founded on a claim from which a discharge would be a
release or [one] that seeks to impose a charge on the
property of the estate." Trustee does not provide an
explanation of his position regarding the stay. Plaintiff has
not responded to the Trustee's notice. It is not clear to
the Court that the automatic stay in bankruptcy under 11
U.S.C. § 362 applies to this case.
careful consideration, IT IS HEREBY ORDERED that, within
thirty days of the date of this order, Plaintiff shall
provide, in writing, (a) the identity and state(s) of
citizenship of each member of Defendant; and (b) its position
on the Trustee's notice that this proceeding is subject
to the automatic bankruptcy stay. Failure timely to provide
information to establish this Court's diversity
jurisdiction or to demonstrate the inapplicability of the
automatic bankruptcy stay may result in the dismissal without
prejudice of this action for lack of subject matter
jurisdiction or a stay of this proceeding due to
FURTHER ORDERED that the Trustee may file a reply to
Plaintiffs position on the bankruptcy stay within fourteen
days after Plaintiff files its response to this order.
FINALLY ORDERED that the Clerk of the Court shall provide the
Trustee a copy of this order either electronically or by
other reasonable means through the contact information he