Yolked, Inc. v. CFG Merchant Solutions, LLC ( 2023 )

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 NORTHERN DISTRICT OF CALIFORNIA 10 11 YOLKED, INC. and JIM ANGELOPOULOS, Case No. 23-cv-02216 NC 12 Plaintiffs, ORDER TO DEFENDANT TO 13 v. SHOW CAUSE RE: SUBJECT 14 CFG MERCHANT SOLUTIONS, LLC, MATTER JURISDICTION; VACATING JUNE 28 HEARING 15 Defendant. 16 17 This case was removed from Santa Clara County Superior Court by defendant CFG 18 Merchant Solutions, LLC. ECF 1. The party seeking to invoke federal court jurisdiction 19 (here, the defendant CFG) has the burden of establishing that federal subject matter 20 jurisdiction exists. Scott v. Breeland, 792 F.2d 925, 927 (9th Cir. 1986). The federal court 21 is a court of limited jurisdiction and must presume a lack of jurisdiction until the party 22 asserting jurisdiction establishes otherwise. Id. 23 It is elementary that an LLC “is a citizen of every state of which its 24 owners/members are citizens.” Johnson v. Columbia Props. Anchorage, LP, 437 F.3d 894, 25 899 (9th Cir. 2006). It is not a citizen of the state in which it was formed or does business. 26 Id. (emphasis added). Therefore, whether Plaintiffs and Defendant are diverse in this case 27 depends on the citizenship of Defendant’s owners/members as compared to Plaintiffs’ 1 || every state of which the owners/members of CFG Merchant Solutions LLC is a citizen. 2 Consequently, Defendant must show cause in writing by June 26, 2023, as to why 3 || this case should not be remanded back to Santa Clara County Superior Court due to a 4 || failure to establish federal subject matter jurisdiction. Plaintiffs may file an optional reply 5 || on the jurisdictional issue by June 29, 2023. 6 The Court will not rule on Defendant’s pending motion to dismiss (ECF 7) until the 7 || subject matter jurisdiction issue is determined. The Court therefore vacates the June 28 8 || hearing on the motion to dismiss. The Court will reset the hearing if needed. 9 10 IT IS SO ORDERED. 1] 12 || Dated: June 21, 2023 ————~ NATHANAEL M. COUSINS United States Magistrate Judge a 15 16 19 20 21 22 23 24 25 26 27 28