Mullins v. Testamerica Inc.

300 F. App'x 259
CourtCourt of Appeals for the Fifth Circuit
DecidedNovember 13, 2008
Docket07-10340
StatusUnpublished
Cited by33 cases

This text of 300 F. App'x 259 (Mullins v. Testamerica Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mullins v. Testamerica Inc., 300 F. App'x 259 (5th Cir. 2008).

Opinion

PER CURIAM: *

On October 31, 2008, pursuant to our “duty to raise the issue of subject matter jurisdiction sua sponte,” see H & D Tire & Auto.-Hardware, Inc. v. Pitney Bowes Inc., 227 F.3d 326, 328 (5th Cir.2000) (emphasis added), we requested that the parties identify and provide citations to record evidence substantiating the citizenship of all limited and general partners of Defendant Sagaponack Partners, L.P., both as of the date when the case was removed to federal court solely on the basis of diversity jurisdiction and as of the date when Plaintiffs filed their second amended complaint adding Sagaponack as a defendant (after it was initially dismissed for want of personal jurisdiction). This inquiry was precipitated by deficient allegations of diversity in the notice of removal and the second amended complaint with respect to Sagaponack’s citizenship.

When jurisdiction is based on diversity, we adhere strictly to the rule that citizenship of the parties must be distinctly and affirmatively alleged.’ ” Getty Oil Corp. v. Ins. Co. of N. Am., 841 F.2d 1254, 1259 (5th Cir.1988) (quoting McGovern v. Am. Airlines, Inc., 511 F.2d 653, 654 (5th Cir.1975)). “Failure adequately to allege the basis for diversity jurisdiction mandates dismissal.” Stafford v. Mobil Oil Corp., 945 F.2d 803, 805 (5th Cir.1991). As noted in our recent request, the citizenship of a limited partnership such as Sagaponack is that of all its partners, general and limited. See Carden v. Arkoma Assocs., 494 U.S. 185, 189, 192-97, 110 S.Ct. *260 1015, 1018-22, 108 L.Ed.2d 157 (1990); Corfield v. Dallas Glen Hills LP, 355 F.3d 853, 856 & n. 3 (5th Cir.2003). The notice of removal in this case identified Sagaponack as “a limited partnership existing under the laws of the State of New York” and asserted that “Sagaponack is now and was at the time this action was commenced a citizen of the State of New York and of no other state.” No mention was made of Sagaponack’s partners, let alone their respective states of citizenship. The second amended complaint similarly failed to disclose the citizenship of Sagaponack’s partners, describing Sagaponack (inconsistently) as a “Delaware limited partnership.” Under Carden, these allegations are facially insufficient to establish the existence of diversity jurisdiction.

In their responses to our request, the parties concede that no record evidence substantiates the citizenship of Sagaponack’s partners. Instead, Defendants contend that Plaintiffs have not disputed that none of Sagaponack’s partners is a citizen of Texas, as is each Plaintiff. The absence of a dispute between the parties regarding the existence of diversity jurisdiction is irrelevant, however, because “subject-matter jurisdiction cannot be created by waiver or consent.” Howery v. Allstate Ins. Co., 243 F.3d 912, 919 (5th Cir.2001). We also reject Defendants’ reliance on the district court’s statement in its final judgment that the court “had jurisdiction over the subject matter and the parties to this proceeding.” Given the dearth of allegations and evidence in the record to support the citizenship of Sagaponack, this conclusion does not definitively establish diversity jurisdiction.

Defendants also disclose, for the first time, an extensive list of general and limited partners who are or were citizens of California, Colorado, Illinois, New Jersey, New York, Massachusetts, Michigan, Nevada, Canada, and the British Virgin Islands at the time of removal or of the filing of the second amended complaint. Notably, these allegations conflict with Defendants’ previous assertion that Sagaponack was a citizen of “New York and no other state ” at the time suit was filed and later removed. Moreover, Defendants’ disclosure remains inadequate. Defendants list numerous limited partners, including a limited liability company, several trusts, two limited partnerships, and several other businesses of unknown type, for which they provide no citizenship information. Defendants’ stated belief “[t]o the best of [their] knowledge” that none of these entities has members, partners, trustees, or principal places of business in Texas or is organized under Texas law falls manifestly short of distinctly and affirmatively alleging Sagaponack’s citizenship. See, e.g., Ill. Cent. Gulf R.R. Co. v. Pargas, Inc., 706 F.2d 633, 636 & n. 2 (5th Cir.1983) (“[T]he basis upon which jurisdiction depends must be alleged affirmatively and distinctly and cannot be established argumentatively or by mere inference.” (quoting 5 Charles Alan Wright & Arthur R. Miller, Federal Practice and Procedure § 1206, at 78-79 (1969 & Supp.1983)) (internal quotations omitted)); see also, e.g., Barkhorn v. Adlib Assocs., Inc., 345 F.2d 173, 174 (9th Cir.1965) (“Parties cannot confer jurisdiction on a federal court simply by expressing confidence in it.”).

Defendants invoke 28 U.S.C. § 1653, which confers discretion upon trial and appellate courts to allow parties to cure defective jurisdictional allegations by amending their pleadings. See § 1653 (“Defective allegations of jurisdiction may be amended, upon terms, in the trial or appellate courts.”); Nadler v. Am. Motors Sales Corp., 764 F.2d 409, 413 (5th Cir. 1985). Although this statute is liberally construed, we have permitted direct amendments to pleadings on appeal only when “our discretionary examination of the record as a whole discloses at least a *261 substantial likelihood that jurisdiction exists .... ” Nadler, 764 F.2d at 413 (granting leave to amend because allegations regarding the plaintiffs’ state of “residence” suggested where they resided for diversity purposes, and deposition testimony in the record indicated that the defendant corporation was incorporated in a different state); see also, e.g., Carlton v. Baww, Inc., 751 F.2d 781, 789 (5th Cir.1985) (allowing amendment on appeal when the record plainly reflected that jurisdiction existed).

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Cite This Page — Counsel Stack

Bluebook (online)
300 F. App'x 259, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mullins-v-testamerica-inc-ca5-2008.