-RBC Hays v. Wal-Mart Real Estate Business Trust et al, No. 1:2011cv00324 - Document 6 (N.D. Ind. 2011)

Court Description: OPINION AND ORDER re 2 Notice of Removal. Defendants are ORDERED to supplement the record forthwith as to the citizenship of Wal-Mart Real Estate Business Trust, Wal-Mart Stores East, LP, Wal-Mart Transportation, LLC, and Wal-Mart TRS, LLC, tracing the citizenship of all unincorporated associations through all applicable layers of ownership. Signed by Magistrate Judge Roger B Cosbey on 9/15/2011. (kjm)

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UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF INDIANA FORT WAYNE DIVISION RACHAEL HAYS, ) ) Plaintiff, ) ) v. ) ) WAL-MART REAL ESTATE BUSINESS TRUST,) WAL-MART ASSOCIATES, INC., ) WAL-MART STORES EAST, LP, ) WAL-MART PROPERTIES, INC., ) WAL-MART REALTY COMPANY, ) WAL-MART STORES EAST, INC., ) WAL-MART STORES, INC., ) WAL-MART TRANSPORTATION, LLC, ) WAL-MART TRS, LLC, ) ) Defendants. ) CAUSE NO. 1:11-CV-324 OPINION AND ORDER This case was removed to this Court from the LaGrange Circuit Court by Defendants, Wal-Mart Real Estate Business Trust, Wal-Mart Associates, Inc., Wal-Mart Stores East, LP, Wal-Mart Properties, Inc., Wal-Mart Realty Company, Wal-Mart Stores East, Inc., Wal-Mart Stores, Inc., Wal-Mart Transportation, LLC, and Wal-Mart TRS, LLC, based on diversity jurisdiction pursuant to 28 U.S.C. § 1332(a). (Docket # 2.) The Notice of Removal alleges that Defendants are corporations incorporated in Delaware and that Defendants have their principal places of business in Arkansas. (Notice of Removal ¶ 2.) Defendants Notice of Removal, however, is inadequate. While the Notice properly alleges the citizenship of Wal-Mart Associates, Inc., Wal-Mart Properties, Inc., Wal-Mart Stores East, Inc., Wal-Mart Stores, Inc., and Wal-Mart Realty Company because these entities are in fact corporations,1 the Notice fails to establish the citizenship of the remaining four defendants, consisting of a business trust, two LLCs, and an LP. First, the citizenship of Wal-Mart Real Estate Business Trust has not been properly established because the citizenship of a trust is determined by the citizenship of the trustee. Navaroo Sav. Ass n v. Lee, 446 U.S. 458 (1980); May Dep t Stores Co. v. Fed. Ins. Co., 305 F.3d 597, 599 (7th Cir. 2002). The Notice of Removal, however, makes no mention of the trustee of Wal-Mart Real Estate Business Trust or the trustee s citizenship. Therefore, Defendants must amend their Notice of Removal to state the citizenship of Wal-Mart Real Estate Business Trust. As to Defendants Wal-Mart Transportation, LLC, and Wal-Mart TRS, LLC, a limited liability company s citizenship for purposes of . . . diversity jurisdiction is the citizenship of its members. Cosgrove v. Bartolotta, 150 F.3d 729, 731 (7th Cir. 1998). Therefore, the Court must be advised of the citizenship of all the members of Wal-Mart Transportation, LLC, and all the members of Wal-Mart TRS, LLC, to ensure that none of its members share a common citizenship with Plaintiff. Hicklin Eng g, L.C. v. Bartell, 439 F.3d 346, 347 (7th Cir. 2006). Moreover, citizenship must be traced through multiple levels for those members of Wal-Mart Transportation, LLC, and of Wal-Mart TRS, LLC, who are a partnership or a limited liability company, as anything less can result in a dismissal or remand for want of jurisdiction. Mut. Assignment & Indem. Co. v. Lind-Waldock & Co., LLC, 364 F.3d 858, 861 (7th Cir. 2004). Finally, as regards Wal-Mart Stores East, LP, a limited partnership has the citizenships 1 While the organization of Wal-Mart Realty Company is unclear from its name, a search of the Delaware Department of State s website, see Delaware Department of State: Division of Corporations Online Services. https://delecorp.delaware.gov/tin/GINameSearch.jsp (last visited September 15, 2011), revealed that Wal-Mart Realty Company is a Delaware corporation. As such, Defendants have properly alleged citizenship for Wal-Mart Realty Company. 2 of each partner, general and limited. Guar. Nat l Title Co., Inc. v. J.E.G. Assoc., 101 F.3d 57, 59 (7th Cir. 1996) ( There is no such thing as a [state name] limited partnership for purposes of the diversity jurisdiction. There are only partners, each of which has one or more citizenships. ); see also Hart v. Terminex Int l, 336 F.3d 541, 544 (7th Cir. 2003). Thus, a court need[s] to know the name and citizenship(s) of its general and limited partners. Guar. Nat l Title Co., 101 F.3d at 59; Meyerson v. Showboat Marina Casino P ship, 312 F.3d 318, 320-21 (7th Cir. 2002). Moreover, as discussed above, the citizenship of unincorporated associations must be traced through however many layers of partners or members there may be. Meyerson, 312 F.3d at 320; see also Indiana Gas Co. v. Home Ins. Co., 141 F.3d 314, 316 (7th Cir. 1998) ( [B]oth general and limited partnerships are citizens of every jurisdiction of which any partner is a citizen. ). Therefore, the Court needs to be advised of the membership of Wal-Mart Stores East, LP. Therefore, Defendants are ORDERED to supplement the record forthwith as to the citizenship of Wal-Mart Real Estate Business Trust, Wal-Mart Stores East, LP, Wal-Mart Transportation, LLC, and Wal-Mart TRS, LLC, tracing the citizenship of all unincorporated associations through all applicable layers of ownership. SO ORDERED. Enter for this 15th day of September, 2011. /S/ Roger B. Cosbey Roger B. Cosbey, United States Magistrate Judge 3

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