James Harris v. Lee Rand

James B. Harris et al. (collectively, “plaintiffs”) appeal from the district court’s dismissal without prejudice of their first amended complaint for lack of subject matter jurisdiction. The district court, citing Hertz Corp. v. Friend, — U.S.-, 130 S.Ct. 1181 , 175 L.Ed.2d 1029 (2010), dismissed the first amended complaint because plaintiffs failed to provide factual support for their allegations of diversity. But Hertz did not impose a heightened pleading standard and, in two orders issued before its order of dismissal, the district court requested that plaintiffs provide further allegations of the corporate parties’ principal places of business, not further proof. The district court did not abuse its discretion by requesting proof of the parties’ principal places of business, but we find its orders inconsistent. We therefore vacate the order dismissing the first amended complaint, and remand.

BACKGROUND

On May 20, 2010, plaintiffs filed suit in the United States District Court pursuant to 28 U.S.C. § 1332 (a)(2), which provides for subject matter jurisdiction over actions between citizens of a state and citizens or subjects of a foreign state.

On June 28, 2010, the…