Dennis A. Harkins and Yvonne Harkins v. Rift Transportation Services, LLC, and Samwel M. Guto

Summary

The court reviewed Defendants’ removal of the case based on diversity jurisdiction and found that the allegations were insufficient to establish the citizenship of the defendant limited liability company. The court also found that Defendants had not filed the required Federal Rule of Civil Procedure 7.1 disclosure statements and ordered them to file complete disclosures and explain why the case should not be remanded.

Holdings

1. A party invoking diversity jurisdiction must specifically allege the citizenship of every member of an LLC; alleging only the LLC's state of organization, principal place of business, or the absence of Mississippi-domiciled members does not establish the LLC's citizenship.
2. Negative allegations that no LLC member is domiciled in the forum state are insufficient to satisfy the burden of the party asserting diversity jurisdiction.
3. Parties in an action invoking diversity jurisdiction must file disclosure statements identifying every individual or entity whose citizenship is attributed to the party or intervenor, including when the action is removed.

Questions Presented

1. Whether defendants adequately established complete diversity by alleging the citizenship of every member of the defendant limited liability company.
2. Whether negative allegations that no member of the LLC is domiciled in Mississippi satisfy the removing party's burden to establish diversity jurisdiction.
3. Whether defendants were required to file Rule 7.1 diversity disclosure statements with the Notice of Removal.

Disposition

other