Independent Financial Group, LLC v. Quest Trust Company

• Court: District Court, N.D. California
• Decided: January 27, 2021
• Docket: 3:21-cv-00537
• Status: Unknown

Opinion

1 2 3 4 5 6 7 UNITED STATES DISTRICT COURT 8 NORTHERN DISTRICT OF CALIFORNIA 9

10 INDEPENDENT FINANCIAL GROUP, LLC, Case No.21-cv-00537-NC 11 Plaintiff, ORDER TO SHOW CAUSE WHY 12 CASE SHOULD NOT BE v. REMANDED 13 QUEST TRUST COMPANY, Re: ECF 1 14 Defendant. 15 16 Defendant Quest Trust Company removed this case from Monterey County 17 Superior Court on January 22, 2021. ECF 1. In its removal notice, Quest alleges that 18 removal is proper based on diversity jurisdiction under 28 U.S.C. § 1332. ECF 1 at 2. 19 However, in reaching this conclusion Quest incorrectly applied the corporation citizenship 20 test to Plaintiff Independent Financial Group, a limited liability company. ECF 1 at 2, 7. 21 LLCs are treated like partnerships for the purposes of diversity jurisdiction. See Johnson 22 v. Columbia Props. Anchorage, LP, 437 F.3d 894, 899 (9th Cir. 2006). As such, Quest 23 should have listed the citizenship of all of IFG’s members and then evaluated diversity. 24 See 15A Moore’s Federal Practice - Civil § 102.57 (2020). 25 Accordingly, the Court ORDERS Quest to show cause in writing why this case 26 should not be remanded by February 10, 2021. The Court also ORDERS all parties to 27 consent or decline the jurisdiction of a magistrate judge by February 5, 2021. ECF 4. 1 IT IS SO ORDERED. 2 3 || Dated: January 27, 2021 —<———~_ _ NATHANAEL M. COUSINS 4 United States Magistrate Judge 5 6 7 8 9 10 11 12

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