Alternatives Unlimited, Inc. v. Group Excellence, Ltd. et al, No. 3:2010cv02283 - Document 4 (N.D. Tex. 2010)

Court Description: Memorandum Opinion and Order: Plaintiff's Complaint is deficient with respect to the allegations necessary to establish subject matter jurisdiction. Amended Complaint due by 11/29/2010. (See Order) (Ordered by Judge Sam A Lindsay on 11/18/2010) (dnc)

Download PDF

Alternatives Unlimited, Inc. v. Group Excellence, Ltd. et al Doc. 4 IN THE UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF TEXAS DALLAS DIVISION ALTERNATIVES UNLIMITED, INC., Plaintiff, v. GROUP EXCELLENCE, LTD., CONFIDENCE MUSIC INC., CARL DORVIL, in his individual capacity, and Isaac Barnes, Jr., in his individual capacity, Defendants. § § § § § § § § § § § § § Civil Action No. 3:10-CV-2283-L MEMORANDUM OPINION AND ORDER Before the court is Plaintiff’s Original Petition [sic] and Request for Equitable Relief, filed November 10, 2010. I. Introduction Plaintiff filed this action and alleges claims for interference with a business relationship, conversion, violation of the Texas Enterprise and Antitrust Act of 1983, and negligent supervision. The court cannot ascertain whether it has subject matter jurisdiction over this action because the requisite allegations to establish jurisdiction have not been stated distinctly and with sufficient detail. In other words, Plaintiff’s Complaint is deficient with respect to the allegations necessary to establish subject matter jurisdiction. The court directs Plaintiff to amend its Complaint by November 29, 2010, so that it can determine whether it has subject matter jurisdiction. To assist Plaintiff in this regard, the court sets forth the applicable standard for subject matter jurisdiction Memorandum Opinion and Order - Page 1 Dockets.Justia.com regarding diversity, which is what Plaintiff asserts as the jurisdictional basis for this court to entertain this action. II. Subject Matter Jurisdiction Standard A federal court has subject matter jurisdiction over civil cases “arising under the Constitution, laws, or treaties of the United States,” or over civil cases in which the amount in controversy exceeds $75,000, exclusive of interest and costs, and in which diversity of citizenship exists between the parties. 28 U.S.C. §§ 1331, 1332. Federal courts are courts of limited jurisdiction and must have statutory or constitutional power to adjudicate a claim. See Home Builders Ass’n, Inc. v. City of Madison, 143 F.3d 1006, 1010 (5th Cir. 1998). Absent jurisdiction conferred by statute or the Constitution, they lack the power to adjudicate claims and must dismiss an action if subject matter jurisdiction is lacking. Id.; Stockman v. Federal Election Comm’n, 138 F.3d 144, 151 (5th Cir. 1998) (citing Veldhoen v. United States Coast Guard, 35 F.3d 222, 225 (5th Cir. 1994)). A federal court has an independent duty, at any level of the proceedings, to determine whether it properly has subject matter jurisdiction over a case. See Ruhgras AG v. Marathon Oil Co., 526 U.S. 574, 583 (1999) (“[S]ubject-matter delineations must be policed by the courts on their own initiative even at the highest level.”); McDonal v. Abbott Labs., 408 F.3d 177, 182 n.5 (5th Cir. 2005) (“federal court may raise subject matter jurisdiction sua sponte”). Diversity of citizenship exists between the parties only if each plaintiff has a different citizenship from each defendant. Getty Oil Corp. v. Insurance Co. of North America, 841 F.2d 1254, 1258 (5th Cir. 1988). Otherwise stated, 28 U.S.C. § 1332 requires complete diversity of citizenship; that is, a district court cannot exercise jurisdiction if any plaintiff shares the same citizenship as any defendant. See Corfield v. Dallas Glen Hills LP, 355 F.3d 853, 857 (5th Cir. 2003) (citing Memorandum Opinion and Order - Page 2 Strawbridge v. Curtiss, 7 U.S. (3 Cranch) 267 (1806)), cert. denied, 541 U.S. 1073 (2004). “[T]he basis on which jurisdiction depends must be alleged affirmatively and distinctly and cannot be established argumentatively or by mere inference.” Getty, 841 F.2d at 1259 (citing Illinois Cent. Gulf R.R. Co. v. Pargas, Inc., 706 F.2d 633, 636 n.2 (5th Cir. 1983)). Failure to allege adequately the basis of diversity “mandates remand or dismissal of the action.” Stafford v. Mobil Oil Corp., 945 F.2d 803, 805 (5th Cir. 1991). A partnership or unincorporated association’s citizenship is determined by the citizenship of each of its partners. Carden v. Arkoma Assocs., 494 U.S. 185, 195-96 (1990). The citizenship of a limited liability company “is determined by the citizenship of all of its members.” Harvey v. Grey Wolf Drilling Co., 542 F.3d 1077, 1080 (5th Cir. 2008). A corporation is a “citizen of any State by which it has been incorporated and of the State where it has its principal place of business[.]” 28 U.S.C. § 1332(c)(1). A natural person is considered a citizen of the state where that person is domiciled, that is, where the person has a fixed residence with the intent to remain there indefinitely. See Freeman v. Northwest Acceptance Corp., 754 F.2d 553, 555-56 (5th Cir. 1985). For diversity purposes, the amount in controversy is determined by the amount sought on the face of the plaintiff’s pleadings, so long as the plaintiff’s claim is made in good faith. St. Paul Reinsurance Co. v. Greenberg, 134 F.3d 1250, 1253 (5th Cir. 1998); De Aguilar v. Boeing Co., 47 F.3d 1404, 1408 (5th Cir.), cert. denied, 516 U.S. 865 (1995). Plaintiff shall file its Amended Complaint by November 29, 2010. Failure to file by this date and comply with the court’s order will result in dismissal of this action for lack of subject matter jurisdiction. Memorandum Opinion and Order - Page 3 It is so ordered this 18th day of November, 2010. _________________________________ Sam A. Lindsay United States District Judge Memorandum Opinion and Order - Page 4

Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.