Safe Health Systems, Inc. v. Greenspoon Marder LLP
- P. Castel
- 1:23-cv-05234
- U.S. District Court · Southern District of New York
- 3
Safe Health Systems v. Greenspoon Marder, Judge Castel ordered citizenship disclosures to determine diversity jurisdiction and warned the case could be dismissed.
Safe Health Systems, Greenspoon Marder LLP, and Joseph MacLellan; the order specifically required Greenspoon to provide information about Greenspoon’s partners and MacLellan’s domicile and citizenship.
What happened
Safe Health Systems, Inc. v. Greenspoon Marder LLP concerns whether the court has diversity jurisdiction, which generally requires the opposing parties to be citizens of different states. Safe Health alleged that it is a Delaware corporation with its main business location in Arizona, while it described Greenspoon as a Florida limited liability partnership with a New York principal place of business and Joseph MacLellan as residing in New York.
The court explained that a limited liability partnership’s citizenship depends on the citizenship of all its partners. It also explained that an individual’s citizenship depends on domicile—the person’s fixed legal home—not simply residence. The existing filings did not provide enough information about Greenspoon’s partners or MacLellan’s domicile and citizenship.
Judge P. Castel ordered Greenspoon, within 14 days, to submit a declaration from MacLellan stating his domicile and citizenship and a declaration from Greenspoon’s managing partner stating the citizenship of all partners. The court warned that failure to submit the required information would result in dismissal for lack of subject matter jurisdiction; the order did not itself dismiss the action.
The detailed version
- Safe Health Systems, Inc. v. Greenspoon Marder LLP · No. 1:23-cv-05234
- P. Castel
- June 18, 2024
Background
Safe Health Systems, Inc. filed this action against Greenspoon Marder LLP, Joseph MacLellan, and Does 1 through 10. The case was originally filed in the Central District of California and later transferred to the Southern District of New York.
In its First Amended Complaint, Safe Health alleged that it is a Delaware corporation with its principal place of business in Arizona. It alleged that Greenspoon is a Florida limited liability partnership authorized to do business in California and New York, with its principal place of business in New York City, and that MacLellan resides in New York.
Jurisdictional issue
The court addressed subject matter jurisdiction, meaning the court’s legal authority to hear the case. The action appeared to rely on diversity jurisdiction, which generally requires complete diversity: no plaintiff may share state citizenship with any defendant.
The court explained that the citizenship of a limited liability partnership includes the citizenship of all of its general and limited partners. Safe Health’s complaint did not identify those citizenships. The court also noted that an individual’s citizenship is based on domicile rather than residence. Although earlier filings stated that MacLellan was born in New York and worked from Greenspoon’s New York office, they did not affirmatively identify his citizenship or domicile.
Order
Within 14 days of the order, Greenspoon was required to submit two declarations: one from MacLellan stating his state of domicile and citizenship, and one from Greenspoon’s managing partner stating the citizenships of all Greenspoon partners, including named, general, and limited partners.
The court stated that failure to submit the required information would result in dismissal of the action for lack of subject matter jurisdiction. The opinion does not state that the action was dismissed in this order.
Read the full 3-page opinion on CourtListener, the free public archive maintained by the Free Law Project.