Opinion
CV 21-4274-DMG (RAOx)
06-15-2021
Landec Corporation v. Certain Underwriters at Lloyd's London, Syndicate No. 2003 XLC and Syndicate No. 0033 HIS, Subscribing to Policy No. B0595XR5938019
CIVIL MINUTES-GENERAL
HONORABLE DOLLY M. GEE, UNITED STATES DISTRICT JUDGE
Proceedings: IN CHAMBERS-ORDER TO SHOW CAUSE WHY THIS ACTION SHOULD NOT BE DISMISSED FOR LACK OF SUBJECT MATTER JURISDICTION
On May 21, 2021, Plaintiff Landec Corporation filed a Complaint against Defendants Certain Underwriters at Lloyd's London (“Lloyd's”), Syndicate No. 2003 XLC and Syndicate No. 0033 HIS, Subscribing to Policy No. B0595XR5938019, asserting claims for breach of contract, breach of implied covenant of good faith and fair dealing, and violation of California's Unfair Competition Law, Cal. Bus. & Prof. Code § 17200 et seq. [Doc. # 1.]
Plaintiff asserts subject matter jurisdiction based on the existence of complete diversity, 28 U.S.C. § 1332, but the Complaint fails to adequately plead complete diversity between the parties, namely, that Defendants are citizens of a different state than Plaintiff. Diaz v. Davis, 549 F.3d 1223, 1234 (9th Cir. 2008) (citing Strawbridge v. Curtiss, 7 U.S. (3 Cranch) 267, 267, 2 L.Ed. 435 (1806)); see Compl. at ¶¶ 7-10. Plaintiff acknowledges that Lloyd's is an unincorporated association and/or limited partnership organized under the laws of Great Britain, but asserts that it does not allege the citizenship of any of its partners or members. See Johnson v. Columbia Props. Advantage, LP, 437 F.3d 894, 899 (9th Cir. 2006) (“a partnership is a citizen of all of the states of which its partners are citizens”). Other courts examining Lloyd's unique structure have concluded that each member, or “Name, ” of a larger group known as a “Syndicate”-such as Defendants Syndicate No. 2003 XLC and Syndicate No. 0033 HIS-must be diverse from Plaintiff to satisfy diversity jurisdiction. See Majestic Ins. Co. v. Allianz Int'l Ins. Co., 133 F.Supp.2d 1218, 1223 (N.D. Cal. 2001); see also PHL Variable Ins. Co. v. Cont'l Cas. Co., No. CV 19-06799-CRB, 2020 WL 1288454, at *3 (N.D. Cal. Mar. 18, 2020) (collecting cases). Without more detailed allegations regarding the citizenship of each Syndicate's Names, the Court cannot determine whether complete diversity exists.
In light of the foregoing, Plaintiff is ORDERED TO SHOW CAUSE in writing by no later than June 29, 2021 why this action should not be dismissed for lack of subject matter jurisdiction.
IT IS SO ORDERED.