ELI Realty Investments, LLC v. Corcoran Group, LLC

United States District Court for the Central District of California

ELI Realty Investments, LLC v. Corcoran Group, LLC

Trial Court Opinion

Case 8:22-cv-01195-JWH-ADS Document 63 Filed 07/25/22 Pagelof3 Page ID #:1668

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES— GENERAL

Case No. = 8:22-cv-01195-JWH-ADS Date July 25, 2022 Title ELI Realty Investments, LLC et al. v. Corcoran Group, LLC et al.

Present: The Honorable JOHN W. HOLCOMB, UNITED STATES DISTRICT JUDGE

Deborah Lewman Not Reported Deputy Clerk Court Reporter Attorney(s) Present for Plaintiff(s): Attorney(s) Present for Defendant(s): None Present None Present Proceedings: SECOND ORDER TO SHOW CAUSE REGARDING SUBJECT MATTER JURISDICTION (IN CHAMBERS) The Court has received and reviewed the notice of Plaintiffs ELI Realty Investments, LLC; Exclusive Lifestyles SoCal, LLC; Exclusive Lifestyles San Francisco, Inc.; Exclusive Lifestyles Ohio, LLC; and Exclusive Lifestyles Las Vegas, LLC.' That Notice listed the membership and ownership of the various LLC Plaintiffs. The Court ordered Plaintiffs to file that Notice? because they assert claims for relief arising under only state law’ and because they assert that the Court possesses diversity jurisdiction over this action pursuant to

28 U.S.C. § 1332

.*

1 See Pls.’ Notice of Owners/Members of Limited Liability Company-Parties Pursuant to Ct. Order (the “‘Notice”) [ECF No. 51]. 2 See generally Order to Show Cause Regarding Subject Matter Jurisdiction (the “OSC”) [ECF No. 28]. 3 See Compl. (the “Complaint”) [ECF No. 1] 1 35-67. 4 Td. at 8. Page 1 of 3 ONERAL Initials of Deputy Clerk dil

Case 8:22-cv-01195-JWH-ADS Document 63 Filed 07/25/22 Page 2 of 3 Page ID #:1669

Plaintiffs’ Notice, however, does not adequately state the full membership of Defendant and Third-Party Plaintiff Corcoran Group, LLC.5 Since Corcoran has appeared and has invoked this Court’s jurisdiction as a third-party plaintiff,6 the Court turns to it to provide information so that the Court may ensure that it possesses subject matter jurisdiction over this case. District courts “have original [diversity] jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs, and is between . . . citizens of different states[.]”

28 U.S.C. § 1332

. Parties invoking the Court’s jurisdiction bear “the burden of demonstrating that the court has subject matter jurisdiction to hear an action.” Nguyen v. Cache Creek Casino Resort,

2021 WL 22434

, at *2 (E.D. Cal. Jan. 4, 2021), report and recommendation adopted sub nom. Hung Nguyen v. Cache Creek Casino Resort,

2021 WL 568212

(E.D. Cal. Feb. 16, 2021) (citing Kokkonen v. Guardian Life Ins. Co.,

511 U.S. 375, 377

(1994)). Like the Court’s previous OSC, the issue here is the citizenship of Corcoran. A limited liability company “is a citizen of every state of which its owners/members are citizens.” Johnson v. Columbia Properties Anchorage, LP,

437 F.3d 894, 899

(9th Cir. 2006). Since the Third-Party Complaint identifies neither the citizenship of Corcoran’s sole member, nor the citizenship of that company’s members or owners, the Court cannot establish that the parties are sufficiently diverse for the purposes of

28 U.S.C. § 1332

. Accordingly, the Court hereby ORDERS as follows: 1. Corcoran is DIRECTED to file, no later than July 29, 2022, a notice listing (a) the name of the limited liability company-party that comprises its sole member; (b) the state of citizenship of that company; and (c) the names and states of citizenship for each owner or member of that company. 2. A video hearing on this Second Order to Show Cause is SET for August 5, 2022, at 11:00 a.m. The video hearing on the previous Order to Show

5 Notice 1:6-11 (stating, on information and belief, that Corcoran’s sole member is itself a limited liability company) (citing Answer, Affirmative Defenses, Countercls., and Third Party Compl. of Corcoran Group LLC (the “Third-Party Complaint”) [ECF No. 12] 11:13-17). 6 See Third-Party Complaint 14:3-6. CIVIL MINUTES— Page 2 of 3 Initials of Deputy Clerk djl GENERAL Case 8:22-cv-01195-JWH-ADS Document 63 Filed 07/25/22 Page 3 of 3 Page ID #:1670

Cause Regarding Subject Matter Jurisdiction [ECF No. 28] is CONTINUED to August 5, 2022, at 11:00 a.m. IT IS SO ORDERED.

CIVIL MINUTES— Page 3 of 3 Initials of Deputy Clerk djl GENERAL

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