The Alexander Condominium v. Admiral Indemnity Company

Background

Admiral removed the action to federal court and asserted jurisdiction based on diversity of citizenship under 28 U.S.C. § 1332. That statute generally requires more than $75,000 to be at stake and complete diversity between the opposing parties.

The removal notice described The Alexander Condominium as a domestic condominium association organized under New York law and as a citizen of New York. It described Admiral Indemnity Company as a Delaware corporation with its principal place of business in New Jersey.

Jurisdictional Issue

The court explained that a corporation is a citizen of its state of incorporation and the state where its principal place of business is located. A condominium is considered a citizen of every state where its individual unit owners are citizens unless the condominium has incorporated.

The notice of removal did not adequately state whether The Alexander Condominium was incorporated or identify the citizenship of its unit owners. The court therefore concluded that Admiral had not adequately alleged complete diversity and that federal diversity jurisdiction had not been established.

Order

Within 7 days of the order, Admiral may serve The Alexander Condominium with an interrogatory—a written question used to obtain information—limited to the citizenship of all unit owners and whether the condominium has incorporated. The Alexander Condominium must respond within 14 days.

Within 30 days of the order, Admiral must file an amended notice of removal that corrects the deficiency. If it does not, the action will be remanded to the state court from which it was removed. Judge P. Castel did not decide the underlying merits of the dispute between the parties.