Sheppard v. Little Giant Ladder Systems, LLC et al
| Texas Northern District Court | |
| Judge: | Ed Kinkeade |
| Case #: | 3:24-cv-02833 |
| Nature of Suit | 365 Torts - Personal Injury - Product Liability |
| Cause | 28:1332 Diversity-Account Receivable |
| Case Filed: | Nov 11, 2024 |
| Case in other court: | 134th Judicial District Court, DC-24-11227 |
| Last checked: Monday Nov 11, 2024 4:09 PM CST |
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Defendant
Little Giant Ladder Systems, LLC
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Represented By
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Defendant
Lowes Home Centers LLC
1000 Lowe's Blvd.
Mooresville, NC 28117 |
Represented By
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Plaintiff
Chriss Sheppard
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Represented By
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| Docket last updated: 11/15/2024 11:59 PM CST |
| Friday, November 15, 2024 | ||
| 9 | 9
misc
Amended Document
Fri 11/15 3:59 PM
AMENDED DOCUMENT by Little Giant Ladder Systems LLC, Lowes Home Centers LLC. . (Self, Scott) |
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| Tuesday, November 12, 2024 | ||
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order
Order
Tue 11/12 1:07 PM
AMENDED ELECTRONIC ORDER: Defendants Little Giant Ladder Systems, LLC d/b/a Little Giant Ladder Systems ("Little Giant") and Lowes Home Centers, LLC ("Lowes") (together, "Defendants") removed this case to federal court on the basis of diversity jurisdiction under 28 U.S.C. § 1332(a). Doc. No. 1 at 2. "When jurisdiction depends on citizenship, citizenship must be 'distinctly and affirmatively alleged.'" Getty Oil Corp., a Div. of Texaco v. Ins. Co. of N. Am. , 841 F.2d 1254, 1259 (5th Cir. 1988). Both Defendants are a limited liability company ("LLC"). It is well-established that the citizenship of an LLC for diversity purposes is determined by the citizenship of each of its members. Carden v. Arkoma Assocs. , 494 U.S. 185, 196 (1990); accord SXSW, L.L.C. v. Fed. Ins. Co. , 83 F.4th 405, 407 (5th Cir. 2023). To allege the citizenship of an LLC "distinctly and affirmatively", these allegations must include the identity of each member, through every layer where applicable, and each member's citizenship. MidCap Media Fin., L.L.C. v. Pathway Data, Inc. , 929 F.3d 310, 314 (5th Cir. 2019). Defendants properly allege Little Giant's citizenship, identifying its sole member and its citizenship. Doc. No. 1 at 2. But for some reason, Defendants fail to properly allege the citizenship of Lowes, conflating the citizenship of an LLC with that of a corporation which is defined in §1332(c)(1). The Court has "an independent obligation to determine whether subject-matter jurisdiction exists, even in the absence of a challenge from any party." Arbaugh v. Y&H Corp. , 546 U.S. 500, 514 (2006) (citing Ruhrgas AG v. Marathon Oil Co. , 526 U.S. 574, 583 (1999)). As the party seeking the federal forum, Defendants bear the burden of establishing the Court's subject matter jurisdiction, which they failed to do. St. Paul Reinsurance Co. v. Greenburg , 134 F.3d 1250, 1253 (5th Cir. 1998). Defendants may amend their Notice of Removal in accordance with this Order no later than November 19, 2024 . If Defendants fail to amend or fail to do so sufficiently, the Court will remand this case without further notice. 28 U.S.C. § 1447(c) (in action removed from state court, federal court must remand case any time before final judgment if court determines it lacks subject matter jurisdiction); see Gasch v. Hartford Accident & Indem. Co. , 491 F.3d 278, 281-82 (5th Cir. 2007) ("The removal statute is therefore to be strictly construed, and any doubt about the propriety of removal must be resolved in favor of remand."). (Ordered by Judge Ed Kinkeade on 11/12/2024) (chmb) |
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order
Order
Tue 11/12 12:50 PM
ELECTRONIC ORDER: Defendants Little Giant Ladder Systems, LLC d/b/a Little Giant Ladder Systems ("Little Giant") and Lowes Home Centers, LLC ("Lowes") (together, "Defendants") removed this case to federal court on the basis of diversity jurisdiction under 28 U.S.C. § 1332(a). Doc. No. 1 at 2. "When jurisdiction depends on citizenship, citizenship must be 'distinctly and affirmatively alleged.'" Getty Oil Corp., a Div. of Texaco v. Ins. Co. of N. Am. , 841 F.2d 1254, 1259 (5th Cir. 1988). Both Defendants are a limited liability company ("LLC"). It is well-established that the citizenship of an LLC for diversity purposes is determined by the citizenship of each of its members . Carden v. Arkoma Assocs. , 494 U.S. 185, 196 (1990); accord SXSW, L.L.C. v. Fed. Ins. Co. , 83 F.4th 405, 407 (5th Cir. 2023). To allege the citizenship of an LLC "distinctly and affirmatively", these allegations must include the identity of each member, through every layer where applicable, and each member's citizenship . MidCap Media Fin., L.L.C. v. Pathway Data, Inc. , 929 F.3d 310, 314 (5th Cir. 2019). Defendants properly allege Little Giant's citizenship, identifying its sole member and its citizenship. Doc. No. 1 at 2. But for some reason, Defendants fail to properly allege the citizenship of Lowes, conflating the citizenship of an LLC with that of a corporation which is defined in §1332(c)(1). The Court has "an independent obligation to determine whether subject-matter jurisdiction exists, even in the absence of a challenge from any party." Arbaugh v. Y&H Corp. , 546 U.S. 500, 514 (2006) (citing Ruhrgas AG v. Marathon Oil Co. , 526 U.S. 574, 583 (1999)). As the party seeking the federal forum, Defendants bear the burden of establishing the Court's subject matter jurisdiction, which they failed to do. St. Paul Reinsurance , 134 F.3d at 1253. Defendants may amend their Notice of Removal in accordance with this Order no later than November 16, 2024. If Defendants fail to amend or fail to do so sufficiently, the Court will remand this case without further notice. 28 U.S.C. § 1447(c) (in action removed from state court, federal court must remand case any time before final judgment if court determines it lacks subject matter jurisdiction); see Gasch v. Hartford Accident & Indem. Co. , 491 F.3d 278, 281-82 (5th Cir. 2007) ("The removal statute is therefore to be strictly construed, and any doubt about the propriety of removal must be resolved in favor of remand."). (Ordered by Judge Ed Kinkeade on 11/12/2024) (chmb) |
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| Monday, November 11, 2024 | ||
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qcref
Kinkeade
Tue 11/12 12:10 PM
New Case Notes: A filing fee has been paid. Pursuant to Misc. Order 6, Plaintiff is provided the Notice of Right to Consent to Proceed Before A U.S. Magistrate Judge (Judge Horan). Clerk to provide copy to plaintiff if not received electronically. (ndt) |
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6
pgs
order
Order for Scheduling Order Proposal
Mon 11/11 5:43 PM
ORDER REQUIRING SCHEDULING CONFERENCE AND REPORT FOR CONTENTS OF SCHEDULING ORDER. (Ordered by Judge Ed Kinkeade on 11/11/2024) (chmb) (Main Document 5 replaced on 11/11/2024) (chmb) |
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6
pgs
order
Order
Mon 11/11 5:41 PM
ORDER: This Order governs requests to file materials in this case under seal. (Ordered by Judge Ed Kinkeade on 11/11/2024) (chmb) |
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misc
Certificate Of Interested Persons/Disclosure Statement
Mon 11/11 3:59 PM
CERTIFICATE OF INTERESTED PERSONS/DISCLOSURE STATEMENT by Lowes Home Centers LLC. (Clerk QC note: No affiliate entered in ECF). (Self, Scott) |
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misc
Certificate Of Interested Persons/Disclosure Statement
Mon 11/11 3:57 PM
CERTIFICATE OF INTERESTED PERSONS/DISCLOSURE STATEMENT by Little Giant Ladder Systems, LLC. (Clerk QC note: No affiliate entered in ECF). (Self, Scott) |
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| 1 | 1
notice
Notice of Removal
Mon 11/11 3:52 PM
NOTICE OF REMOVAL filed by Lowes Home Centers LLC, Little Giant Ladder Systems, LLC. (Filing fee $405; receipt number ATXNDC-15054067) In each Notice of Electronic Filing, the judge assignment is indicated, and a link to the[LINK:Judges Copy Requirements] and[LINK:Judge Specific Requirements] is provided. The court reminds the filer that any required copy of this and future documents must be delivered to the judge, in the manner prescribed, within three business days of filing. Unless exempted, attorneys who are not admitted to practice in the Northern District of Texas must seek admission promptly. Forms and Instructions found at www.txnd.uscourts.gov, or by clicking here:[LINK:Attorney Information - Bar Membership] . If admission requirements are not satisfied within 21 days, the clerk will notify the presiding judge. (Self, Scott) |
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