Goldstar Logistics LLC v. Amazon.com LLC

[7] UNITED STATES DISTRICT COURT [8] WESTERN DISTRICT OF WASHINGTON AT SEATTLE [10] GOLDSTAR LOGISTICS LLC, CASE NO. 2:25-cv-01030-LK [11] Plaintiff, ORDER TO SHOW CAUSE 12 v. 13 AMAZON.COM SERVICES LLC, 14 Defendant. [15] 16 This matter comes before the Court sua sponte. Defendant Amazon.com Services LLC 17 (“Amazon”) removed this case based on diversity. Dkt. No. 1 at 3–6 (citing 28 U.S.C. 18 § 1332(a)(1)). However, the record does not show that complete diversity exists. Amazon is 19 accordingly ordered to show cause why this case should not be remanded to the Superior Court of 20 New Jersey, Law Division, Union County. 21 I. DISCUSSION 22 Plaintiff Goldstar Logistics LLC (“Goldstar”) filed its complaint on January 30, 2024 in 23 the Superior Court of New Jersey, Law Division, Union County. Dkt. No. 1 at 2. On March 1, 24 2024, Amazon removed this case based on diversity jurisdiction. Id. at 3–4. 1 Diversity jurisdiction exists over all civil actions when the matter in controversy exceeds 2 $75,000 and the action is between citizens of different states. 28 U.S.C. § 1332 (a)(1). Whenever a 3 removing defendant invokes diversity jurisdiction, the district court strictly construes the general 4 removal statute against removal. See Hansen v. Grp. Health Coop., 902 F.3d 1051 , 1056–57 (9th 5 Cir. 2018). The presumption against removal based on diversity jurisdiction “means that the 6 defendant always has the burden of establishing that removal is proper.” Gaus v. Miles, Inc., 980 7 F.2d 564, 566 (9th Cir. 1992) (per curiam). 8 Section 1332(a)(1) requires complete diversity; that is, each plaintiff must be a citizen of a 9 different state than each of the defendants. Allstate Ins. Co. v. Hughes, 358 F.3d 1089, 1095 (9th 10 Cir. 2004). Here, both parties are limited liability companies, which “have the citizenship of all of 11 their owners/members[.]” Johnson v. Columbia Properties Anchorage, LP, 437 F.3d 894, 902 (9th 12 Cir. 2006). Local Rule 7.1 requires a party to identify any member of the LLC and for any such 13 member, “list those states in which the . . . members are citizens.” See LCR 7.1(a)(1), (b); see also 14 Fed. R. Civ. P. 7.1 & Advisory Committee notes to 2002 and 2022 amendments (requiring parties 15 in a diversity action to “name—and identify the citizenship of—every individual or entity whose 16 citizenship is attributed to that party,” and noting that such information is crucial to “facilitate an 17 early and accurate determination of jurisdiction”). 18 The notice of removal properly includes the citizenship of Amazon’s sole member, 19 Amazon.com Sales, Inc., alleging that it “is incorporated in Delaware and has its principal place 20 of business in Washington.” Dkt. No. 1 at 2. The notice of removal fails to do the same for 21 Goldstar. The notice of removal states that Goldstar “alleges in its Complaint that it is a New Jersey 22 limited liability company, with its principal place of business” in Newark, New Jersey. Id. at 2; 23 see also Dkt. No. 1-1 at 4–5 (same allegations in complaint). Neither the notice of removal nor the 24 complaint identifies Goldstar’s members or their citizenship. Amazon has thus failed to meet its 1 burden of establishing jurisdiction. Fifty Assocs. v. Prudential Ins. Co. of Am., 446 F.2d 1187 , 2 1190 (9th Cir. 1970) (“Failure to make proper and complete allegations of diversity jurisdiction 3 relegates a litigant to . . . jurisdictional purgatory.”). 4 II. CONCLUSION 5 Amazon is ORDERED TO SHOW CAUSE by within 14 days of the date of this Order 6 why this case should not be remanded due to lack of complete diversity between the parties. 7 Dated this 3rd day of June, 2025. 8 A 9 Lauren King United States District Judge