Avila v. Villalobos

Background

Defendants Aaron Ruben Villalobos and Premier 1 Trucking, LLC removed Carmen Avila’s action from the Supreme Court of New York, Bronx County, to the U.S. District Court for the Southern District of New York. They asserted federal jurisdiction based on diversity of citizenship, which generally requires the parties to be citizens of different states and the required amount to be in dispute. The notice of removal identified Avila as a New York citizen and Villalobos as a Texas citizen. It described Premier 1 Trucking, LLC as a Texas corporation with its principal place of business in Texas.

Citizenship problem

The court observed that Premier 1 Trucking’s name suggests that it is a limited liability company, or LLC, rather than a corporation. An LLC is considered a citizen of every state where its members are citizens. Therefore, a removal notice involving an LLC must identify the citizenship of each member. If a member is a corporation, the notice must identify that corporation’s state of incorporation and principal place of business. The court found that the notice of removal did not provide this information.

Order

Judge Jennifer L. Rochon ordered the defendants to submit, by July 2, 2025, a sworn declaration clarifying whether Premier 1 Trucking is an LLC or a corporation. If it is an LLC, the defendants must amend the notice of removal by that date to allege the citizenship of each person or entity that makes up the LLC, including the required information for any corporate member. The court stated that if the defendants cannot truthfully allege complete diversity by that date, the action will be remanded to the Supreme Court of New York, Bronx County, without further notice.

The defendants were also directed to serve Avila with the order within two business days and file proof of service. Avila’s counsel was directed to file a notice of appearance within two business days after service. The order did not itself remand the case.