SUN NUCLEAR CORPORATION
v.
XCISION MEDICAL SYSTEMS, LLC
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Sun Nuclear Corporation sued Xcision Medical Systems, LLC in federal court based on diversity jurisdiction. The court dismissed the complaint without prejudice because the plaintiff failed to adequately plead the citizenship of the LLC defendant, which is necessary to establish diversity jurisdiction.
The court held that the plaintiff did not sufficiently plead diversity jurisdiction. The citizenship of an LLC is determined by the citizenships of all of its members, not by the state of organization or principal place of business. Without identifying the LLC's members and their citizenships, the court cannot ascertain whether diversity jurisdiction exists. Additionally, allegations based only on "information and belief" are insufficient to establish citizenship for purposes of jurisdiction.
[1] Federal courts must zealously insure that subject matter jurisdiction exists and should raise the question of jurisdiction at any point where doubt arises.
[2] Diversity jurisdiction for limited liability companies requires pleading the citizenship of all of the company's members, not just its state of organization or principal…
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Join FLexlaw to unlock all legal intelligence“because a federal court is powerless to act beyond its statutory grant of subject matter jurisdiction, a court must zealously insure that jurisdiction exists over a case, and should itself raise the question of subject matter jurisdiction at any point in the litigation where a doubt about jurisdiction arises.”
Establishes the federal courts' obligation to verify subject-matter jurisdiction sua sponte.
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Join FLexlaw to unlock all legal intelligencePlaintiff Sun Nuclear Corporation filed a complaint against Defendant Xcision Medical Systems, LLC, alleging that the defendant is a Maryland limited …
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This case is before the Court on review of the Complaint (Doc. 1). Federal courts are courts of limited jurisdiction. "[B]ecause a federal court is powerless to act beyond its statutory grant of subject matter jurisdiction, a court must zealously insure that jurisdiction exists over a case, and should itself raise the question of subject matter jurisdiction at any point in the litigation where a doubt about jurisdiction arises." Smith v. GTE Corp., 236 F. 3d 1292, 1299 (11th Cir. 2001).
In the Complaint, Plaintiff bases subject-matter jurisdiction on diversity of citizenship under 28 U.S.C. § 1332. But Plaintiff has not sufficiently pleaded diversity of citizenship.
Although Plaintiff has adequately pleaded its own citizenship, it has not properly identified the citizenship of the Defendant. Plaintiff alleges that Defendant "is, upon information and belief, a Maryland limited liability company that is duly organized with its principal place of business in Maryland." (Compl. at 1). But the citizenship of a limited liability company is determined not by the state of its organization or its principal place of business but by the citizenships of all of its members. See, e.g., Rolling Greens MHP, L.P. v. Comcast SCH Holdings L.L.C., 374 F. 3d 1020, 1022 (11th Cir. 2004). Without knowing who Defendant's members are or the states of all members' citizenship, the Court cannot ascertain the citizenship of Defendant or whether diversity jurisdiction exists. Additionally, "[a]llegations premised only on 'information and belief are plainly insufficient to establish the citizenship of a party as necessary to invoke this Court's subject matter jurisdiction." B & M Servs., LLC v. L.A. Disaster Relief, LLC, Case No. 3:21-cv-467-MMH-JBT, 2021 WL 1813431, at *1 (M.D. Fla. May 6, 2021).
Accordingly, it is ORDERED as follows: 1. The Complaint (Doc. 1) is DISMISSED without prejudice. 2. No later than May 16, 2025, Plaintiff shall file an amended complaint that identifies Defendant's member(s) and their citizenship(s). Failure to file an amended complaint by this deadline may result in dismissal of this action.
DONE and ORDERED on May 5, 2025.
JOHN ANTOON II United States District Judge Copies furnished to: Counsel of Record Unrepresented Parties
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- Rolling Greens MHP, L.P. v. Comcast SCH Holdings L.L.C., 374 F.3d 1020 (11th Cir. 2004)