PETITION TO CONFIRM ARBITRATION DISMISSED FOR LACK OF FEDERAL COURT’S SUBJECT MATTER JURISDICTION

A limited liability corporation petitioned to confirm an arbitration award against an Illinois corporation in a California federal district court. The district court dismissed for lack of subject matter jurisdiction, as the parties were not diverse in their citizenship, as required by 28 U.S.C. § 1332. The LLC merely alleged it was incorporated in California and had its principal place of business there. These allegations were insufficient to establish the LLC’s citizenship, as an LLC must make allegations regarding the citizenship of each of its members and owners to properly allege its own citizenship. Kim-C1, LLC v. Valent Biosciences Corp., Case No. 1:10-cv-591 (USDC E.D. Cal. June 3, 2010).

This post written by Brian Perryman.

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