Fadal MacHining Centers, LLC v. Mid-Atlantic Cnc, Inc.

ORDER

Fadal Machining Centers, LLC (“Fadal”) and MAG Industrial Automation Systems, LLC (“MAG”) appeal from the district court’s judgment dismissing the action because all claims are subject to arbitration. We are obligated to consider sua sponte whether we have subject matter jurisdiction. See Allstate Ins. Co. v. Hughes, 358 F.3d 1089, 1093 (9th Cir. 2004). Because Appellants cannot establish diversity between the parties, we dismiss the appeal, vacate the district court’s judgment, and remand for dismissal.

In response to this court’s order to submit supplemental briefs addressing the citizenship of the parties, Appellants admitted that a Delaware limited liability company called SP MAG Holdings, LLC owns 10% of MAG. 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 corporation.

For purposes of diversity jurisdiction, a limited liability corporation is a citizen of all states where its members…