Block Mining Inc v. Hosting Source LLC

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON AT SEATTLE

BLOCK MINING, INC., CASE NO. C24-0319JLR Plaintiff, ORDER v. HOSTING SOURCE, LLC, Defendant.

Before the court is Plaintiff Block Mining, Inc.’s (“Block Mining”) complaint against Defendant Hosting Source, LLC (“Hosting Source”). (Compl. (Dkt. # 1).) Having reviewed the complaint, the court finds that Block Mining has failed to allege an adequate basis for subject matter jurisdiction. The court therefore orders Block Mining to serve and file a submission that includes information sufficient to establish the court’s jurisdiction by no later than March 18, 2024. Block Mining asserts that the court’s jurisdiction is based on diversity of citizenship under 28 U.S.C. § 1332(a). (Compl. ¶ 8.) “For a case to qualify for federal jurisdiction under 28 U.S.C. § 1332(a), there must be complete diversity of citizenship between the parties opposed in interest.” Kuntz v. Lamar Corp., 385 F.3d 1177, 1181

(9th Cir. 2004). For purposes of assessing diversity jurisdiction, the court must consider the domicile of all members of a limited liability company. Johnson v. Columbia Props. Anchorage, LP, 437 F.3d 894, 899 (9th Cir. 2006); see also Local Rules W.D. Wash. LCR 8(a) (“If plaintiff is asserting that this court has jurisdiction based on diversity, the complaint must identify the citizenship of the parties, and, if any of the parties is a limited liability corporation (LLC) . . . identify the citizenship of the . . . members of those

entities to establish the court’s jurisdiction.”). Block Mining alleges that Hosting Source “is a Washington limited liability company with its principal place of business in Spokane, Washington.” (Compl. ¶ 7.) Yet, Block Mining fails to allege the citizenship of any of the members of Hosting Source. (See generally id.) Absent such allegations, the court cannot determine if Block Mining has properly invoked this court’s subject

matter jurisdiction on the basis of the parties’ diversity of citizenship.1 Accordingly, the court ORDERS Block Mining to show cause why this case should not be dismissed for lack of subject matter jurisdiction. See Fed. R. Civ. P. 12(h)(3) (“If the court determines at any time that it lacks subject-matter jurisdiction, the court must dismiss the action.”). If Defendants fail to provide the court with the

1 The court notes that if any member of Hosting Source is itself a limited liability company, Block Mining must provide information about the citizenship of the members of that limited liability company as well, which is determined in the same manner described above— namely, by establishing the citizenship of each member. See Johnson, 437 F.3d at 899 (examining the citizenship of a limited partnership whose partners included limited liability companies by looking to the citizenship of the members of those limited liability companies). information described above by March 18, 2024, the court will dismiss this case without prejudice.

Dated this 11th day of March, 2024. A JAMES L. ROBART United States District Judge