Baymont Franchise Systems, Inc. v. Calu Hospitality LLC et al
| Baymont Franchise Systems, Inc. |
| Nataraj V Kote and Calu Hospitality LLC |
| 1:2015cv05938 |
| July 7, 2015 |
| US District Court for the Northern District of Illinois |
| Chicago Office |
| Cook |
| Contract: Franchise |
| 28 U.S.C. ยง 1332 Diversity-Breach of Contract |
| Defendant |
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| Filing 5 MEMORANDUM Opinion and Order: Accordingly not only the Complaint but also this action are dismissed for plaintiff's failure to have demonstrated diversity of citizenship (and hence federal subject matter jurisdiction). If it were to turn out th at the citizenship of Calu's members would confirm that total diversity is indeed present, Baymont would be required to refile this action. But in this Court's view the mandate of the Court of Appeals' caselaw on the subject is suffici ently Draconian that requiring such a refiling of the case plus having to reproduce and refile such a bulky Complaint is not called for. So if Baymont is capable of establishing the required jurisdictional facts within the Rule-59(e)-permitted time frame, this Court would be inclined to grant a motion to undo the requirement of such reproduction -- but that would have to be at an appropriate price, in this instance Baymont's payment of another $400 as the equivalent of the new filing fee that it would have had to pay if required to file a new action that was sound in jurisdictional terms. Complaint paragraph 25 and Ex. D reflect that Calu was involuntarily dissolved in December 2012. Under the Illinois Business Corporation Act t he dissolution of an ordinary corporation still permits the corporation to be sued in its corporate name for a five-year period after dissolution (805 ILCS 5/12.80), but the Illinois Limited Liability Company Act has a more complex provision that, ev en though the relevant citizenship may remain the same for jurisdictional purposes, may require Baymont to sue and serve Calu's members rather than Calu itself (see 805 ILCS 180/25-50). Baymont's counsel will have to look into that question as well if it wishes to shape its lawsuit properly. Signed by the Honorable Milton I. Shadur on 7/9/2015:Mailed notice(clw, ) |
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