Southeastern Solutions SES Inc. v. Icon Realty NY Corp.
- Alvin Hellerstein
- 1:24-cv-08995
- U.S. District Court · Southern District of New York
- 3
Southeastern Solutions v. Icon Realty: Judge Hellerstein granted dismissal for lack of jurisdiction because citizenship and amount-in-controversy allegations were insufficient.
The dismissal ended Southeastern Solutions SES Inc.’s federal case against Icon Realty NY Corp., Hollywood Stylze Salon LLC, Ranch Mini Market & Deli Inc., and V.I.P. Nails Salon by Linda, Inc. without a ruling on whether the alleged construction debt was owed.
What happened
Southeastern Solutions SES Inc. sued Icon Realty NY Corp. and three other defendants, alleging they had not fully paid for separate construction work performed on the same property. The complaint alleged that $120,850.63 remained unpaid in total.
The defendants asked the court to dismiss the case because the court lacked authority to hear it based on diversity of citizenship. The court found that the complaint did not identify the members and citizenship of Hollywood Stylze Salon LLC. It also found that the claims against the defendants could not be combined because the complaint did not allege that they were jointly responsible, and no individual claim exceeded $75,000.
Judge Hellerstein granted the motion to dismiss for lack of subject-matter jurisdiction, directed the clerk to close the case, and did not decide whether the defendants owed the alleged unpaid amounts.
The detailed version
- Southeastern Solutions SES Inc. v. Icon Realty NY Corp. · No. 1:24-cv-08995
- Alvin Hellerstein
- May 6, 2025
Background
Southeastern Solutions SES Inc. alleged that Icon Realty NY Corp., Hollywood Stylze Salon LLC, Ranch Mini Market & Deli Inc., and V.I.P. Nails Salon by Linda, Inc. failed to pay the full balance for construction work and materials. The work was performed under separate agreements in July 2024. Icon Realty owned the property, and the other Hiring Defendants leased it.
The complaint alleged the following agreed prices and values for the work: $70,000.63 for Icon Realty NY Corp.; $38,300 for Hollywood Stylze Salon LLC; $16,600 for Ranch Mini Market & Deli Inc.; and $49,100 for V.I.P. Nails Salon by Linda, Inc. The plaintiff alleged that $120,850.63 remained unpaid in total. It separately filed mechanic’s-lien notices against the defendants on September 18, 2024.
Jurisdictional Issues
The defendants moved to dismiss for lack of subject-matter jurisdiction. The court addressed diversity jurisdiction under 28 U.S.C. § 1332, which requires complete diversity between all parties and an amount in controversy exceeding $75,000.
First, the court explained that a limited liability company is a citizen of every state in which its members are citizens. The complaint did not identify the members of Hollywood Stylze Salon LLC or allege their citizenship. The court therefore found that the complaint did not adequately establish complete diversity.
Second, the court found that the amount-in-controversy requirement was not satisfied. The plaintiff argued that the defendants’ separate unpaid balances could be added together. The court stated that claims against multiple defendants generally cannot be combined for this purpose unless the defendants are jointly liable. The complaint did not allege joint liability, and the court found no indication that joint liability existed. Because the plaintiff performed separate work for each defendant, billed each defendant separately, and filed separate mechanic’s liens, no claim against any one defendant exceeded $75,000.
Ruling
Judge Hellerstein granted the defendants’ motion to dismiss for lack of subject-matter jurisdiction. The clerk was directed to terminate the open motion, ECF No. 32, and close the case. The order did not resolve whether the defendants were liable for the unpaid construction balances.
Read the full 3-page opinion on CourtListener, the free public archive maintained by the Free Law Project.