Reported / Citable
Background
Matthew Rinaudo and Mizkif Enterprises LLC sued Emily Beth Schunk, Zack Hoyt, OTK Media Inc., Mythic Talent Management, Inc., and King Gaming Labs, Inc. for defamation and breach of contract. Plaintiffs invoked federal diversity jurisdiction under 28 U.S.C. § 1332.
Several motions were pending, including motions to dismiss and a motion to compel arbitration and stay the litigation. Although defendants did not contest jurisdiction, the magistrate judge examined subject-matter jurisdiction independently before addressing those motions.
The Court’s Holding
The court found the First Amended Complaint’s jurisdictional allegations deficient. Plaintiffs alleged only the residences—not the domiciles—of Rinaudo, Schunk, and Hoyt, even though an individual’s state citizenship for diversity purposes depends on domicile.
The deficiency also prevented plaintiffs from adequately alleging Mizkif Enterprises LLC’s citizenship. Because Rinaudo allegedly was its sole member, the LLC shared his citizenship, which had not been properly pleaded. The court ordered plaintiffs to submit a brief identifying the three individuals’ domiciles as of November 3, 2025, when the suit was filed, and allowed defendants to respond if necessary. It did not resolve the pending arbitration or dismissal motions.
Key Takeaways
- Alleging an individual’s residence does not establish citizenship for diversity jurisdiction; the pleading must identify domicile.
- An LLC is a citizen of every state in which its members are citizens, so the citizenship of each member must be specifically alleged.
- A federal court must examine its own subject-matter jurisdiction even when no party disputes it.
Why It Matters
The order underscores that precise jurisdictional allegations are required at the outset of a diversity case. Parties cannot rely on residence allegations or treat an LLC like a corporation when pleading citizenship.
The ruling was procedural rather than a decision on the merits: it required plaintiffs to establish complete diversity before the court proceeded to the pending motions.