Li Dong v. Eastern International Corporation, LLC

Opinion

Case 8:21-cv-01913-JLS-ADS Document 28 Filed 06/09/22 Page 1 of 2 Page ID #:179 JS-6 ____________________________________________________________________________ UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES – GENERAL

Case No.: 8:21-cv-01913-JLS-ADS Date: June 09, 2022 Title: Li Dong v. Eastern International Corporation, LLC et al

Present: HONORABLE JOSEPHINE L. STATON, UNITED STATES DISTRICT JUDGE

D. Rojas N/A Deputy Clerk Court Reporter

ATTORNEYS PRESENT FOR PLAINTIFF: ATTORNEYS PRESENT FOR DEFENDANT: Not Present Not Present

PROCEEDINGS: (IN CHAMBERS) ORDER DISMISSING CASE FOR LACK OF SUBJECT MATTER JURISDICTION

The Court may raise the issue of subject matter jurisdiction at any time, sua sponte. See U.S. Catholic Conference v. Abortion Rights Mobilization, 487 U.S. 72, 79 (1988). “If the court determines at any time that it lacks subject-matter jurisdiction, the court must dismiss the action.” Fed. R. Civ. P. 12(h)(3). As the party invoking federal jurisdiction, the plaintiff has the burden of establishing subject matter jurisdiction. See Kokkonen v. Guardian Life Ins. Co., 511 U.S. 375, 377 (1994). At the pleading stage, the burden must be met by pleading “a short and plain statement of the grounds for the court’s jurisdiction . . . .” Fed. R. Civ. P. 8(1)(1). Subject matter jurisdiction exists when an action arises under federal law or when there is complete diversity between the parties and the matter in controversy exceeds $75,000. See 28 U.S.C. § 1331-1332. Diversity jurisdiction arises where the controversy is between “citizens of a State and citizens or subjects of a foreign state.” 28 U.S.C. § 1332(a)(2). However, there is a special rule for establishing the citizenship of a limited liability company (“LLC”). For the purposes of diversity jurisdiction, an LLC is “a citizen of every state of which its owners/members are citizens.” Johnson v. Columbia Props. Anchorage, LP, 437 F.3d 894, 899 (9th Cir. 2006). In the Complaint, Plaintiff Dong invokes this Court’s diversity jurisdiction under 28 U.S.C. § 1332(a). (Compl., Doc. 1, ¶ 3.) The Complaint alleges that “Dong is a citizen of a foreign state and Defendants Peng and Eastern are citizens of this State and/or another state, and the amount in controversy exceeds $75,000.” (Id.) But the Complaint _____________________________________________________________________________ CIVIL MINUTES – GENERAL 1 Case 8:21-cv-01913-JLS-ADS Document 28 Filed 06/09/22 Page 2 of 2 Page ID #:180 ____________________________________________________________________________ UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES – GENERAL

Case No.: 8:21-cv-01913-JLS-ADS Date: June 09, 2022 Title: Li Dong v. Eastern International Corporation, LLC et al

also acknowledges Dong and Peng both hold membership interests in Eastern. (Id. ¶ 11(a).) Dong holds a 10% membership interest, and Peng holds a 90% membership interest. (Id.) Because Dong is a member of Eastern, as an LLC, Eastern is considered a citizen of the foreign state of which the Plaintiff is a citizen, and complete diversity does not exist. Thus, this Court does not have diversity jurisdiction under 28 U.S.C. § 1332(a). Accordingly, this Court lacks subject matter jurisdiction, and this matter is DISMISSED without prejudice to refiling in a proper court.

Initials of Deputy Clerk: droj

_____________________________________________________________________________ CIVIL MINUTES – GENERAL 2