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C.A.9 (Cal.),2012.
Fadal Machining Centers, LLC v. Mid-Atlantic CNC, Inc.
464 Fed.Appx. 672, 2012 WL 8669 (C.A.9 (Cal.))
FADAL MACHINING CENTERS, LLC, Plaintiff–counter–defendant–Appellant,
Mag Industrial Automation Systems, LLC, Counter–defendant–Appellant,
v.
MID–ATLANTIC CNC, INC., Defendant–counter–claimant–Appellee.
No. 10–56494.
the Central District of California, Christina A. Snyder, J., dismissing their action because all claims were subject to
arbitration.
Holding: The Court of Appeals held that diversity jurisdiction did not exist.
Appeal dismissed and remanded.
170BIV(B) Controversies Between Citizens of Different States
170Bk302.5 k. Limited liability companies. Most Cited Cases
A member of plaintiff limited liability corporation (LLC) was a citizen of New Jersey, and therefore plaintiff
LLC was also a citizen of New Jersey for purposes of diversity jurisdiction.
Lynsey Michelle Eaton, Christopher Eric Ng, Esquire, Richard J. Wittbrodt, Esquire, Gary Edward Scalabrini, Gibbs
Giden Locher Turner & Senet, L.L.P., Los Angeles, CA, Scott Edward Korzenowski, Dady & Garner, P.A., Ronald
FN** The Honorable Suzanne B. Conlon, District Judge for the United States District Court for the North-
ern District of Illinois, sitting by designation.
ORDER FN***
FN*** This disposition is not appropriate for publication and is not precedent except as provided by 9th
Cir. R. 36–3.
In response to this court's order to submit supplemental briefs addressing the citizenship of the parties,FN1 Ap-
pellants admitted that a Delaware limited liability company called SP MAG Holdings, LLC owns 10% of MAG.FN2
SP MAG Holdings has six members, including a Delaware limited partnership called Silver Point Capital Fund, LP
and a Delaware limited liability company called SPCP Group III, LLC. Robert J. O'Shea, a citizen of New Jersey, is
a member of both SPCP Group III and Silver Point Capital Fund. Appellee Mid–Atlantic CNC, Inc. is a New Jersey
LLC is the sole member of G & L USA.
For purposes of diversity jurisdiction, a limited liability corporation is a citizen of all states where its members
are citizens. See Johnson v. Columbia Props. Anchorage, LP, 437 F.3d 894, 899 (9th Cir.2006).
Appellants urge that “SP MAG Holdings, LLC's Membership Interest should be disregarded for purposes of de-
110 S.Ct. 1015, 108 L.Ed.2d 157 (1990) (“We have never held that an artificial entity, suing or being sued in its own
name, can invoke the diversity jurisdiction of the federal courts based on the citizenship of some but not all of its
members.”); see also Johnson, 437 F.3d at 899 (“[A]n unincorporated association ... has the citizenships of all of its
and should have dismissed the action. We therefore dismiss the appeal, and remand to the district court with instruc-
tions to vacate the judgment and orders and dismiss the case for lack of jurisdiction. Appellee Mid–Atlantic shall
recover its costs on appeal.
APPEAL DISMISSED and REMANDED.
The filing of this Order shall serve as the court's mandate.
Lynsey Michelle Eaton, Christopher Eric Ng, Esquire, Richard J. Wittbrodt, Esquire, Gary Edward Scalabrini, Gibbs
Giden Locher Turner & Senet, L.L.P., Los Angeles, CA, Scott Edward Korzenowski, Dady & Garner, P.A., Ronald
FN** The Honorable Suzanne B. Conlon, District Judge for the United States District Court for the North-
ern District of Illinois, sitting by designation.
ORDER FN***
FN*** This disposition is not appropriate for publication and is not precedent except as provided by 9th
Cir. R. 36–3.
In response to this court's order to submit supplemental briefs addressing the citizenship of the parties,FN1 Ap-
pellants admitted that a Delaware limited liability company called SP MAG Holdings, LLC owns 10% of MAG.FN2
SP MAG Holdings has six members, including a Delaware limited partnership called Silver Point Capital Fund, LP
and a Delaware limited liability company called SPCP Group III, LLC. Robert J. O'Shea, a citizen of New Jersey, is
a member of both SPCP Group III and Silver Point Capital Fund. Appellee Mid–Atlantic CNC, Inc. is a New Jersey
LLC is the sole member of G & L USA.
For purposes of diversity jurisdiction, a limited liability corporation is a citizen of all states where its members
are citizens. See Johnson v. Columbia Props. Anchorage, LP, 437 F.3d 894, 899 (9th Cir.2006).
Appellants urge that “SP MAG Holdings, LLC's Membership Interest should be disregarded for purposes of de-
110 S.Ct. 1015, 108 L.Ed.2d 157 (1990) (“We have never held that an artificial entity, suing or being sued in its own
name, can invoke the diversity jurisdiction of the federal courts based on the citizenship of some but not all of its
members.”); see also Johnson, 437 F.3d at 899 (“[A]n unincorporated association ... has the citizenships of all of its
and should have dismissed the action. We therefore dismiss the appeal, and remand to the district court with instruc-
tions to vacate the judgment and orders and dismiss the case for lack of jurisdiction. Appellee Mid–Atlantic shall
recover its costs on appeal.
APPEAL DISMISSED and REMANDED.
The filing of this Order shall serve as the court's mandate.
