Parler LLC v. Amazon Web Services Inc

Opinion

WESTERN DISTRICT OF WASHINGTON

7 PARLER, LLC, NO. 2:21-cv-270 Plaintiff, 8 ORDER RE: JURISDICTIONAL v. DISCOVERY 9 AMAZON WEB SERVICES, INC., and 10 AMAZON.COM, INC., Defendants. 11 On July 1, 2021 the Court held oral argument on issues raised by Plaintiff Parler LLC’s 12 Amended Motion for Remand. The Court had directed counsel to address, in particular, the 13 questions of subject matter jurisdiction, diversity of the parties, and the propriety of limited 14 jurisdictional discovery. Having taken the argument of counsel under advisement, the Court now 15 rules as follows. 16 A “district court has ‘broad discretion’ to permit or deny jurisdictional discovery.” 17 Gillespie v. Prestige Royal Liquors Corp., 183 F. Supp. 3d 996, 1001 (N.D. Cal. 2016), citing 18 Butcher's Union Local No. 498 v. SDC Investment, Inc., 788 F.2d 535, 540 (9th Cir. 1986). 19 “[D]iscovery should ordinarily be granted where pertinent facts bearing on the question of 20 jurisdiction are controverted or where a more satisfactory showing of the facts is necessary.” Laub 21 v. U.S. Dep't of Interior, 342 F.3d 1080, 1093 (9th Cir. 2003); see also Harris Rutsky & Co. Ins. 22 Servs., Inc. v. Bell & Clements Ltd., 328 F.3d 1122, 1135 (9th Cir. 2003)(reversing denial of 23 24 ORDER RE: JURISDICTIONAL DISCOVERY

25 2 might well demonstrate facts sufficient to constitute a basis for jurisdiction”). 3 Parler claims it is a citizen of Delaware, based on the Delaware citizenship of the J.P. 4 Morgan Trust Company, which is a trustee of the Rebekah Mercer 2020 Irrevocable Trust (the 5 “Trust”), which in turn is a member of NDM Ascendant LLC, which in turn is a member of Parler. 6 Defendants respond that after the Supreme Court’s decision in Americold Realty Trust v. Conagra 7 Foods, Inc., the citizenship of the trustee does not necessarily determine the citizenship of the 8 Trust. 577 U.S. 378, 383 (2016). Instead, under Americold and its progeny, how to determine the 9 citizenship of the Trust (and therefore, in this case, of Parler) essentially turns on whether it is a 10 traditional trust or a commercial trust. See Demarest v. HSBC Bank USA, N.A, 920 F. 3d 1223, 11 1229 (9th Cir.), cert. denied sub nom. Demarest v. HSBC Bank USA, N.A., 140 S. Ct. 386, 205 L.

12 Ed. 2d 218 (2019), citing Raymond Loubier Irrevocable Tr. v. Loubier, 858 F.3d 719, 722 (2d Cir. 13 2017)(drawing distinction between “(1) traditional trusts establishing only fiduciary relationships 14 and having no legal identity distinct from their trustees, [and] (2) the variety of unincorporated 15 artificial entities to which states have applied the ‘trust’ label, but which have little in common 16 with traditional trusts.”). Counsel for Parler has represented that the Trust instrument demonstrates 17 it is a traditional donative trust, but this document, and others that might resolve this question, are 18 in Parler’s exclusive control. 19 The Court is mindful of the controversial circumstances under which Defendants have 20 removed this case, and is wary of—and will not allow—protracted discovery motions practice on 21 this issue. However, the Court concludes that extremely limited jurisdictional discovery is

22 appropriate under these circumstances. Therefore, the Court hereby orders Parler to produce to 23 Defendants, within seven days of issuance of this order: (1) a copy of the Rebekah Mercer 2020 24 ORDER RE: JURISDICTIONAL DISCOVERY

25 2 JP Morgan Trust Company, Inc. became a trustee of that Trust, and (b) the Trust became a member 3 of NDM Ascendant LLC; and (3) any documents that Parler believes establish a lack of complete 4 diversity between the parties to this case. These documents shall be designated Attorneys’ Eyes 5 Only. 6 Furthermore, within 14 days of production of these documents, Defendants shall either (1) 7 stipulate to remand of this matter to King County Superior Court, whence it was removed; or (2) 8 file with the Court a brief statement of reasons they will not so stipulate, not to exceed 10 pages; 9 Plaintiff shall have seven days, and also 10 pages, to respond. 10 DATED this 1st day of July, 2021. 11 A 12 13 B arbara Jacobs Rothstein U.S. District Court Judge 14 15 16 17 18 19 20 21 22 23 24 ORDER RE: JURISDICTIONAL DISCOVERY