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Greene v. Fay Servicing, LLC, 19-cv-01073-JSC. (2019)

Court: District Court, N.D. California Number: infdco20190416b34 Visitors: 5
Filed: Apr. 15, 2019
Latest Update: Apr. 15, 2019
Summary: THIRD ORDER TO SHOW CAUSE RE: CITIZENSHIP OF DEFENDANT FAY SERVICING, LLC JACQUELINE SCOTT CORLEY , Magistrate Judge . The Court issued two previous orders to show cause seeking clarification regarding the citizenship of Defendant Fay Servicing, LLC ("Fay Servicing"). (Dkt. Nos. 36 & 39.) As the Court previously noted, the Ninth Circuit has held that for purposes of determining complete diversity, "an LLC is a citizen of every state of which its owners/members are citizens." See Johnson v.
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THIRD ORDER TO SHOW CAUSE RE: CITIZENSHIP OF DEFENDANT FAY SERVICING, LLC

The Court issued two previous orders to show cause seeking clarification regarding the citizenship of Defendant Fay Servicing, LLC ("Fay Servicing"). (Dkt. Nos. 36 & 39.) As the Court previously noted, the Ninth Circuit has held that for purposes of determining complete diversity, "an LLC is a citizen of every state of which its owners/members are citizens." See Johnson v. Columbia Props. Anchorage, LP, 437 F.3d 894, 899 (9th Cir. 2006). Fay Servicing's responses to the previous orders to show cause do not clarify its citizenship. Instead, the responses indicate that Fay Servicing's "sole member and owner" is itself an LLC (Fay Management, LLC), and that LLC's "sole member and owner" is another LLC—Fay Financial, LLC. (See Dkt. Nos. 37-1 at ¶ 3 & 40-1 at ¶ 3.) Fay Servicing asserts that Fay Financial, LLC consists of "more than thirty members," and information pertaining to those members is "non-public" and was unavailable to Fay Servicing's counsel "within the deadline set forth by the Court." (See Dkt. No. 40 at 2-3.)

Fay Servicing correctly "anticipates that the Court may" require further clarification pursuant to Johnson. (See Dkt. No. 40 at 2.) The Byzantine ownership and membership structure of Fay Servicing does not alleviate Fay Servicing's burden, as the removing party, to prove that there is diversity jurisdiction under 28 U.S.C. § 1332. Thus, Fay Servicing shall file a declaration clarifying its citizenship by April 19, 2019 at 12 p.m. The Court will take Plaintiff's motion to remand under submission at that time.

The hearing on the motion to remand scheduled for Thursday, April 18, 2019 is VACATED.

IT IS SO ORDERED.

Source:  Leagle

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