McMahon v. BJW Realty LLC
- Jesse Furman
- 1:25-cv-01323
- U.S. District Court · Southern District of New York
- 2
In McMahon v. BJW Realty, Judge Furman ordered amended jurisdiction allegations by February 25 or dismissal without prejudice.
Patrick Joseph McMahon, Sandra Gagliardy McMahon, and BJW Realty LLC; the plaintiffs must provide additional citizenship allegations for the case to proceed in federal court.
What happened
Patrick Joseph McMahon and Sandra Gagliardy McMahon sued BJW Realty LLC and claimed that the federal court could hear the case because the parties were citizens of different states. Their complaint alleged the parties’ states of residence, but not their states of citizenship.
The court explained that residence alone does not establish citizenship for this purpose. It also said the complaint did not identify the citizenship of each person or entity connected to BJW Realty LLC, as required for a limited liability company.
Judge Jesse M. Furman ordered the plaintiffs to file an amended complaint properly alleging every party’s citizenship by February 25, 2025. He stated that the court will dismiss the case without prejudice and without further notice if they do not establish federal subject-matter jurisdiction.
The detailed version
- McMahon v. BJW Realty LLC · No. 1:25-cv-01323
- Jesse Furman
- Feb. 19, 2025
Background
Patrick Joseph McMahon and Sandra Gagliardy McMahon filed a complaint against BJW Realty LLC on February 13, 2025. They invoked diversity jurisdiction under 28 U.S.C. § 1332, which can allow a federal court to hear a dispute involving citizens of different states. The complaint stated that there was complete diversity between the parties, but it alleged only the parties’ states of residence, not their states of citizenship.
Jurisdictional Deficiencies
The court explained that residence is not enough to establish citizenship for diversity jurisdiction. For individuals, citizenship depends on domicile. The court also held that a complaint involving an LLC must identify the citizenship of every member of the LLC. If an LLC member is another LLC, the complaint must identify that entity’s members and citizenship as well. The complaint did not provide this information for BJW Realty LLC.
Court’s Order
The court ordered the plaintiffs to file an amended complaint properly alleging the citizenship of each party no later than February 25, 2025. If they do not file an amended complaint establishing the court’s subject-matter jurisdiction, Judge Jesse M. Furman stated that the court will dismiss the case without prejudice and without further notice. The order addressed the court’s jurisdictional requirements and did not decide the underlying dispute.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.