Williams Steele v. 1085 Nelson LLC Apts

Background

Beatrice Shirley Williams Steele, who was representing herself, sued 1085 Nelson LLC Apts. and Ita R. Flug. The complaint invoked federal-question jurisdiction and alleged that the defendants violated her federal constitutional rights and state law. The complaint concerned a claimed $5,033.55 rent balance, a housing-court proceeding, alleged unpaid or rejected rent payments, and alleged failures to make repairs or provide a new stove and refrigerator. Steele sought money damages.

The court had previously granted her permission to proceed without paying filing fees in advance. She also applied for the court to request pro bono counsel.

Subject-Matter Jurisdiction

The court dismissed the action for lack of subject-matter jurisdiction, meaning the federal court concluded that the complaint did not establish its legal power to hear the claims.

The court first considered federal-question jurisdiction. Steele alleged constitutional violations, which would generally be brought under 42 U.S.C. § 1983. But a § 1983 claim must allege that each defendant acted under state law or authority. The court found that 1085 Nelson LLC Apts. and Flug were private parties and that Steele did not allege that they worked for a state or other government body. The court also found that the complaint did not invoke another federal cause of action and did not otherwise suggest a viable federal claim.

The court then considered diversity jurisdiction for possible state-law claims. Steele alleged that she was a New York citizen and provided a New York business address for Flug, but she did not identify the citizenship of the members of 1085 Nelson LLC or the citizenship of any other defendant. The court therefore found that she had not shown complete diversity of citizenship. Although she appeared to seek $1 million in damages, the court also found that her factual allegations did not sufficiently show that her claims were worth more than the required $75,000 threshold.

Disposition of the Complaint

The court dismissed the complaint under Federal Rule of Civil Procedure 12(h)(3) for lack of subject-matter jurisdiction. It granted Steele 30 days’ leave to replead in an amended complaint. The court stated that an amended complaint asserting federal claims must allege facts showing a federal cause of action. If she asserted state-law claims based on diversity jurisdiction, she would need to allege the citizenship of the members of 1085 Nelson LLC and any other defendant, complete diversity, and facts showing that the claims were worth at least $75,000. The amended complaint also had to provide enough factual detail to make it plausible that each defendant was liable.

The court directed the Clerk of Court to hold the matter open until a civil judgment is entered and stated that judgment would be entered if Steele did not file an amended complaint within the allowed time.

Application for Pro Bono Counsel

The court denied Steele’s application for the court to request pro bono counsel, without prejudice to renewal at a later time if she filed an amended complaint.

Result

The complaint was dismissed for lack of subject-matter jurisdiction, with 30 days’ leave to replead. The request for pro bono counsel was denied without prejudice to renewal. The court did not decide the underlying merits of Steele’s housing-related allegations.