C N Jewellers LLC v. PNG Jewelers Inc.

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

C N JEWELLERS LLC, and others,

Case No. 20-cv-06997-NC

Plaintiffs,

ORDER TO SHOW CAUSE WHY v. CASE SHOULD NOT BE

DISMISSED

PNG JEWELERS INC.,

Defendant.

Plaintiffs C N Jewellers LLC and Nilesh Soni filed a complaint against Defendant PNG Jewelers Inc. on October 7, 2020. ECF 1. In their complaint, Plaintiffs allege that the Court has jurisdiction based on diversity jurisdiction under 28 U.S.C. § 1332. ECF 1 at 2. However, in reaching this conclusion Plaintiffs incorrectly applied the corporation citizenship test to C N Jewellers, a limited liability company. Id. LLCs are treated like partnerships for the purposes of diversity jurisdiction. See Johnson v. Columbia Props. Anchorage, LP, 437 F.3d 894, 899 (9th Cir. 2006). As such, Plaintiffs should have listed the citizenship of all of C N Jewellers’ members and then evaluated diversity. See 15A Moore’s Federal Practice - Civil § 102.57 (2020).

Accordingly, the Court ORDERS Plaintiffs to show cause in writing why this case should not be dismissed by March 2, 2021. Defendant’s reply is due March 6, 2021. //

1 IT IS SO ORDERED.

3 || Dated: February 23, 2021 —<———~_ _ NATHANAEL M. COUSINS 4 United States Magistrate Judge o 17

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