Odes USA Inc. v. Total Quality Logistics, LLC

Summary

The Central District of California remanded the action to Riverside County Superior Court because the removing defendant failed to establish complete diversity of citizenship. The court held that conclusory allegations about the citizenship of the members of defendant Total Quality Logistics, LLC were insufficient and noted additional concerns regarding the amount in controversy.

Holdings

1. A limited liability company invoking diversity jurisdiction must identify the citizenship of each member, tracing citizenship through additional layers of LLCs, partnerships, or other entities as necessary. Conclusory assertions that the LLC and its members are citizens of a particular state are insufficient.
2. When a removing defendant fails to establish diversity jurisdiction, the federal court must remand the removed action to state court.

Questions Presented

1. Whether Total Quality Logistics, LLC established the citizenship of itself and its members sufficiently to invoke federal diversity jurisdiction.
2. Whether the action had to be remanded under 28 U.S.C. § 1447(c) because the removing defendant failed to establish subject matter jurisdiction.

Disposition

remanded