210 Muni LLC v. Mahlum

Background

The action was removed from the Supreme Court of New York, New York County, on January 15, 2025. Defendant Anne Mahlum claimed that the federal court had diversity jurisdiction under 28 U.S.C. § 1332. She alleged that she was a resident and citizen of Florida and stated, based on information and belief, that no members of 210 Muni LLC or Olympic Funding LLC were Florida citizens.

Court’s analysis

The court explained that a limited liability company is considered a citizen of every state in which its members are citizens. A notice of removal relying on diversity jurisdiction must therefore identify the citizenship of each person or entity that makes up the plaintiff LLCs. If a corporate entity is an LLC member, the notice must state that entity’s state of incorporation and principal place of business. The court held that simply alleging that an LLC is a citizen of a different state from the opposing party is conclusory and does not establish the required diversity of citizenship.

Order

The court ordered Defendant Mahlum to amend her Notice of Removal by January 24, 2025, to allege the citizenship of each constituent person or entity comprising the plaintiff LLCs. The court further ordered that, if she could not truthfully allege complete diversity by that date, the action would be remanded to the Supreme Court of New York, New York County, without further notice. The court also directed Defendant Mahlum to serve the order on the plaintiffs within two business days and file proof of service, and directed the plaintiffs’ counsel to file a notice of appearance within two business days after service. The order was signed as “ENNIPER L. ROCHON,” while the opinion’s opening identifies the judge as “JENNIFER L. ROCHON.”