Jassas Capital LLC v. Arch Specialty Insurance Company ( 2023 )

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA FORT MYERS DIVISION JASSAS CAPITAL LLC, Plaintiff, v. Case No.: 2:23-cv-1095-SPC-NPM ARCH SPECIALTY INSURANCE COMPANY, CERTAIN UNDERWRITERS AT LLOYD’S, LONDON, SUBSCRIBING TO CERTIFICATE NUMBER UMRB1776BP202321N and UNITED SPECIALTY INSURANCE COMPANY, Defendants. / ORDER Before the Court is Defendants Arch Specialty Insurance Company, Certain Underwriters at Lloyd’s London, and United Specialty Insurance Company’s Notice of Removal. (Doc. 1). This is a breach of contract action involving property damage that occurred because of Hurricane Ian. Defendants have removed based on diversity jurisdiction. A defendant may remove a case from state court if the federal court has original jurisdiction. 28 U.S.C. § 1441(a). “The existence of federal jurisdiction is tested at the time of removal.” Adventure Outdoors, Inc. v. Bloomberg, 552 F.3d 1290, 1294-95 (11th Cir. 2008); 28 U.S.C. § 1447(c). “A removing defendant bears the burden of proving proper federal jurisdiction.” Leonard v. Enter. Rent a Car, 279 F.3d 967, 972 (11th Cir. 2002). Because federal courts have limited jurisdiction, they are “obligated to inquire into subject matter jurisdiction sua sponte whenever it may be lacking.” Univ. of S. Ala. v. Am. Tobacco Co., 168 F.3d 405, 410 (11th Cir. 1999). And removal statutes are strictly construed with doubts resolved for remand. Dudley v. Eli Lilly & Co., 778 F.3d 909, 912 (11th Cir. 2014). Federal courts have original jurisdiction over cases with complete diversity and an amount in controversy over $75,000, exclusive of interest and costs. 28 U.S.C. § 1332(a). Here, Defendants have not proven Plaintiff’s citizenship. Plaintiff is a limited liability company. An LLC is a citizen of every state in which one of its members is domiciled. Rolling Greens MHP, L.P. v. Comcast SCH Holdings L.L.C., 374 F.3d 1020 (11th Cir. 2004); McCormick v. Aderholt, 293 F.3d 1254, 1257-58 (11th Cir. 2002). Each member of the LLC must be diverse from the opposing party for federal diversity jurisdiction to exist. Flintlock Constr. Servs., LLC v. Well-Come Holdings, LLC, 710 F.3d 1221, 1224-25 (11th Cir. 2013). Defendants have identified the members of Plaintiff LLC but have not adequately informed the Court of the citizenship of these members. A person’s citizenship is determined by his “domicile,” or “the place of his true, fixed, and permanent home and principal establishment . . . to which he has the intention of returning whenever he is absent therefrom.” McCormick v. Aderholt, 293 F.3d 1254, 1257-58 (11th Cir. 2002). Defendants have provided business addresses for the various Plaintiff LLC members. And for some Plaintiff members, Defendants have also provided addresses attached to professional licenses. But neither a business address nor a professional license is indicative of citizenship. To establish subject-matter jurisdiction, Defendants need to inform the Court of the citizenship of all the members of Plaintiff LLC. The Court finds that Defendants have not met their burden of establishing this Court’s subject-matter jurisdiction over this action. Accordingly, it is now ORDERED: 1. Defendants Arch Specialty Insurance Company, Certain Underwriters at Lloyd’s London, and United Specialty Insurance Company’s must SUPPLEMENT their Notice of Removal (Doc. 1) on or before January 15, 2024, to show cause why this case should not be remanded for lack of subject-matter jurisdiction. 2. Failure to comply with this Order will cause this case being remanded without further notice. DONE and ORDERED in Fort Myers, Florida on December 29, 2023. , Lh platrathe 7 UNITED STATES DISTRICT JUDGE Copies: All Parties of Record