CSDVRS, LLC v. Purple Communications, Inc.

979 F. Supp. 2d 1302, 2013 WL 5797330, 2013 U.S. Dist. LEXIS 154229
CourtDistrict Court, M.D. Florida
DecidedOctober 28, 2013
DocketCase No. 8:13-cv-1811-T-30AEP
StatusPublished
Cited by3 cases

This text of 979 F. Supp. 2d 1302 (CSDVRS, LLC v. Purple Communications, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CSDVRS, LLC v. Purple Communications, Inc., 979 F. Supp. 2d 1302, 2013 WL 5797330, 2013 U.S. Dist. LEXIS 154229 (M.D. Fla. 2013).

Opinion

ORDER

JAMES S. MOODY, JR., District Judge.

THIS CAUSE comes before the Court upon the Plaintiff CSDVRS, LLC’s Motion to Remand (Dkt. #21) and Defendant Purple Communications, Inc.’s Opposition to Plaintiffs Motion to Remand (Dkt. #45) and CSDVRS, LLC’s Motion for Leave to Reply to Defendant Purple Communications’ Opposition to Plaintiffs Motion to Remand (Dkt. # 46). Upon review and consideration, it is the Court’s conclusion that the case should be remanded to state court.

Background

Plaintiff CSDVRS, LLC (“CSDVRS”) filed a complaint in state court alleging breach of contract, tortious interference, fraudulent inducement and promissory estoppel. Defendant, Purple Communications, Inc. (“Purple”) removed this action to federal court based on diversity of citizenship. In its Amended Notice of Removal, Purple alleged that CSDVRS is a limited liability company with seven members who are not citizens of Delaware or California. Purple made these allegations because CSDVRS previously filed a similar complaint against the same parties in federal court based on diversity of citizenship, which it voluntarily dismissed. See CSDVRS, LLC v. Aupix, Ltd., et. al., Case No. 8:13-CV-649-T-30MAP (the “Prior Action”).

CSDVRS filed a Motion to Remand the case objecting to Purple’s allegations of complete diversity of citizenship. In support of its Motion to Remand Plaintiff attached three affidavits which identified nine members or partners of CSDVRS who “resided” in California. Plaintiff then filed a supplemental affidavit stating that CSDVRS has a member, M7C Venture Investors, LLC, which has three members who are “citizens of the United States, domiciled in and citizens of Kentfield, California, Tiburón, California, and San Francisco, California” at the time of removal. The supplemental affidavit does not identify whether these three members are individuals or corporate entities.

In response to the Motion for Remand, Purple filed a Motion to Engage in Limited Expedited Discovery to Adequately Respond to Plaintiffs Pending Motion to Remand (Dkt. # 26). The Motion requested leave to conduct interrogatories, serve requests for production and set depositions, if necessary, to determine whether complete diversity exists. This Court granted the Motion. Purple served CSDVRS with interrogatories requesting that CSDVRS identify any member who is a citizen of California or Delaware. Plaintiff responded with “unknown” but re-iterated the statements made in its supplemental affidavit regarding M/C Venture Investors, LLC and adding that “[o]n information and belief, these three (3) citizens are all individuals.”

I. Standard for Removal

A civil case filed in a state court may be removed to federal court by a defendant if the case could have originally been brought in federal court. 28 U.S.C. § 1441(a). Federal courts have diversity jurisdiction over civil actions when the amount in controversy exceeds $75,000 and the action is between citizens of different states. 28 U.S.C. § 1332(a). Diversity jurisdiction requires complete diversity; every plaintiff must be diverse from every defendant. Flintlock, Const. Services, LLC [1305]*1305v. Well Come Holdings, LLC, 710 F.3d 1221 (11th Cir.2013).

A defendant may remove any civil action by filing a notice of removal, signed pursuant to the good faith requirements of Rule 11, which contains “a short and plain statement of the grounds for removal.” 28 U.S.C. § 1446(a). Section 1446(b) then establishes the prerequisites for removal in two types of cases: (1) those removable on the basis of an initial pleading; and (2) those that later become removable on the basis of “a copy of an amended pleading, motion, order or other paper.” 28 U.S.C. § 1446(b). Regardless of the type of case, a defendant must remove within thirty days of receiving the document that provides the basis for removal. Id.

When a defendant removes an action to federal court on diversity grounds, a court must remand the matter to state court if complete diversity is lacking between the parties or if any of the properly served defendants are citizens of the state in which the suit was filed. Florence v. Crescent Res., LLC, 484 F.3d 1293, 1297 (11th Cir.2007). Federal courts are directed to construe removal statutes strictly, resolve all doubts about jurisdiction in favor of remand, and employ a presumption in favor of remand. Univ. of S. Alabama v. Am. Tobacco Co., 168 F.3d 405, 411 (11th Cir.1999). The removing party bears the burden of demonstrating that removal is proper. Williams v. Best Buy Co., 269 F.3d 1316, 1319 (11th Cir.2001).

The Eleventh Circuit has held that “while it is best to include all relevant evidence in a petition for removal and motion to remand, a district court may, when necessary, consider post-removal evidence in assessing removal jurisdiction.” Sierminski v. Transouth Fin. Corp., 216 F.3d 945, 949 (11th Cir.2000). Further, “the jurisdictional facts that support removal must be judged at the time of the removal, and any post-petition affidavits are allowable only if relevant to that period of time.” Id. at 949 (citing Allen v. R & H Oil Co., 63 F.3d 1326, 1335 (5th Cir.1995)).

Discussion

Purple removed this action within thirty days of receiving the complaint. In its Amended Notice of Removal Purple asserted complete diversity of citizenship between Plaintiff and Defendants. The Amended Notice of Removal also alleged that Plaintiff CSDVRS is a limited liability company with seven members, as follows: 1) Communication Services for the Deaf, Inc.; 2) Sean Belanger, an individual; 3) M/C Venture Partners V, L.P.; 4) M/C Venture Partners VI, L.P.; 5) M/C Venture Investors, LLC; 6) Providence Growth Investors, L.P.; and 7) Providence Growth Entrepreneurs Funds, L.P. These were the seven members identified by CSDVRS in the Prior Action. The Amended Complaint in the Prior Action did not specifically allege the names or citizenship of the partners of the limited partnerships or the members of the limited liability companies that were members of CSDVRS.

To sufficiently allege the citizenship 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. Rolling Greens MHP, LP v. Comcast SCH Holdings, LLC 374 F.3d 1020, 1022 (11th Cir.2004).

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979 F. Supp. 2d 1302, 2013 WL 5797330, 2013 U.S. Dist. LEXIS 154229, Counsel Stack Legal Research, https://law.counselstack.com/opinion/csdvrs-llc-v-purple-communications-inc-flmd-2013.