UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

Case No. 21-cv-21652-BLOOM/Otazo-Reyes

PAYLESS, INC., PAYLESS SHOESOURCE WORLDWIDE LLC, and PAYLESS SHOESOURCE (PANAMA), S.A.,

Plaintiffs,

v.

BEAZLEY INSURANCE COMPANY,

Defendant. _______________________________________/

ORDER OF DISMISSAL

THIS CAUSE is before the Court upon a sua sponte review of Plaintiffs’ Complaint, ECF No. [1] (“Complaint”). The Court has reviewed the Complaint, the record in this case, the applicable law, and is otherwise fully advised. For the reasons discussed below, the above-styled case is dismissed without prejudice. Federal courts are “‘empowered to hear only those cases within the judicial power of the United States as defined by Article III of the Constitution,’ and which have been entrusted to them by a jurisdictional grant authorized by Congress.” Univ. of S. Ala. v. Am. Tobacco Co.,

(11th Cir. 1999) (quoting Taylor v. Appleton,

(11th Cir. 1994)). As such, a “district court may act sua sponte to address the issue of subject matter jurisdiction at any time.” Herskowitz v. Reid,

(11th Cir. 2006). Further, “once a federal court determines that it is without subject matter jurisdiction, the court is powerless to continue.” Univ. of S. Ala.,

. The Complaint in this case alleges that this Court has diversity jurisdiction over this action pursuant to

. ECF No. [1] ¶ 5. The Complaint further states that, “Payless Shoesource Worldwide LLC is a corporation organized and existing under the laws of Florida with its principal place of business located in Miami, Florida.”

. District courts have diversity jurisdiction over cases in which the parties are completely

diverse and the amount in controversy exceeds $75,000.00.

. “For a court to have diversity jurisdiction pursuant to

(a), ‘all plaintiffs must be diverse from all defendants.’” First Home Bank v. Net Zero LLC, No. 3:20-cv-150-J-34MCR,

, at *2 (M.D. Fla. Feb. 18, 2020) (quoting Univ. of S. Ala.,

)). “The burden of pleading diversity of citizenship is upon the party invoking federal jurisdiction, and if jurisdiction is properly challenged, that party also bears the burden of proof.” Ray v. Bird & Son & Asset Realization Co.,

(5th Cir. 1975).1 “[F]or the purposes of establishing diversity jurisdiction, an unincorporated business association or entity, such as a general or limited partnership or a limited liability company, is not

a ‘citizen’ under

(a) in its own right.” First Home Bank,

, at *2 (citing Xaros v. U.S. Fid. & Guar. Co.,

(11th Cir. 1987)). Rather, the longstanding rule is that “the citizenship of an artificial, unincorporated entity generally depends on the citizenship of all the members composing the organization.” Rolling Greens MHP, L.P. v. Comcast SCH Holdings LLC,

(11th Cir. 2004) (citing Carden v. Arkoma Assocs.,

(1990)). With regard to the existence of diversity jurisdiction, “a limited partnership is a citizen of each state in which any of its partners, limited or general, are

1 In Bonner v. City of Prichard, Ala.,

(11th Cir. 1981), the Court of Appeals for the Eleventh Circuit adopted as binding precedent all decisions of the Court of Appeals for the Fifth Circuit issued prior to October 1, 1981. Case No. 21-cv-21652-BLOOM/Otazo-Reyes

citizens.”

(citing Carden,

). “Therefore, in order to sufficiently allege the citizenship of an unincorporated business entity, a party must list the citizenships of all the members of that entity.” First Home Bank,

, at *2 (citing Rolling Greens MHP, L.P.,

). Here, Plaintiffs have failed to sufficiently allege the citizenship of Plaintiff Payless Shoesource Worldwide LLC. Specifically, Plaintiffs do not identify the members of the “limited liability company [or] their respective states of citizenship.” First Home Bank,

, at *2 (citing Rolling Greens MHP, L.P.,

). As explained above, however, “[t]o sufficiently allege the citizenships of [] unincorporated business entities, a party must list the citizenships of all the members of the limited liability company and all the partners of the limited partnership,” and if the party invoking the court’s jurisdiction fails to do so, as Plaintiffs have here, they cannot satisfy their burden of establishing diversity of citizenship. Rolling Greens MHP, L.P.,

. Accordingly, “the Court lacks sufficient information to satisfy the jurisdictional inquiry.” First Home Bank,

, at *2. Accordingly, it is ORDERED AND ADJUDGED that the above-styled case is DISMISSED WITHOUT PREJUDICE. Plaintiffs are permitted to file an amended complaint that properly alleges the basis for invoking diversity jurisdiction on or before May 7, 2021. DONE AND ORDERED in Chambers at Miami, Florida, on April 30, 2021.

BETHBLOOM i sts—s UNITED STATES DISTRICT JUDGE Copies to: Counsel of Record