Acadya Capital Group LLC v. Texas A&M University

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

ACADYA CAPITAL GROUP LLC,

Case No. 20-cv-07837-NC

Plaintiff,

ORDER TO SHOW CAUSE WHY v. CASE SHOULD NOT BE

DISMISSED

TEXAS A&M UNIVERSITY, and others,

Defendants.

Plaintiff Acadya Capital Group LLC filed a complaint against Defendants Texas A&M University and Pao-Tai Lin on November 5, 2020. ECF 1. In its complaint, Acadya alleges that the Court has subject matter jurisdiction based on diversity jurisdiction under 28 U.S.C. § 1332. ECF 1 ¶ 8. However, in reaching this conclusion Acadya incorrectly applied the corporation citizenship test to itself, a limited liability company. Id. at ¶ 1. 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, Plaintiff should have listed the citizenship of all of Acadya’s members and then evaluated diversity. See 15A Moore’s Federal Practice - Civil § 102.57 (2020).

Accordingly, the Court ORDERS Acadya to show cause in writing why this case should not be dismissed by March 17, 2021. Defendant’s reply is due March 19, 2021. 1 IT IS SO ORDERED.

3 || Dated: March 10, 2021 —<———~_ _ NATHANAEL M. COUSINS 4 United States Magistrate Judge

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