EMG Transfer Agent, LLC v. Acadian Place 2022 Holbox LLC

Summary

The United States District Court for the Middle District of Louisiana granted Defendant Acadian Place 2022 Holbox LLC’s motion to dismiss for lack of subject matter jurisdiction. The court held that Plaintiff failed to establish complete diversity because an LLC member, Yisroel Gross, was not shown to be domiciled in New Jersey and was allegedly domiciled in Israel. The breach of contract action was dismissed without prejudice.

Holdings

1. Plaintiff failed to establish complete diversity because it did not prove that Defendant's member Yisroel Gross was domiciled in New Jersey when the action was commenced. A United States citizen domiciled abroad is not a citizen of any state for purposes of diversity jurisdiction, and the presence of such a stateless party destroys diversity jurisdiction.
2. In determining subject matter jurisdiction, the court may consider record evidence beyond the pleadings, including affidavits and other evidence concerning the facts underlying a party's citizenship and domicile.

Questions Presented

1. Whether Plaintiff established complete diversity under 28 U.S.C. § 1332 when Defendant's LLC member, a United States citizen, allegedly was domiciled in Israel.
2. Whether the court could consider evidence beyond the pleadings to determine Gross's domicile and the existence of subject matter jurisdiction.

Disposition

dismissed