White v. Burrell

Background

The action was filed in Bronx County state court and removed to the Southern District of New York on June 25, 2025. The Notice of Removal claimed federal jurisdiction based on diversity of citizenship under 28 U.S.C. § 1332.

Jurisdictional issue

Federal district courts have limited subject matter jurisdiction, meaning they may hear only cases authorized by federal law. For diversity jurisdiction, the pleadings must clearly allege the citizenship of the parties and show complete diversity.

When a limited liability company, or LLC, is a party, its citizenship depends on the citizenship of all its members. If an LLC member is itself another LLC, the citizenship of that LLC's members must also be identified through the ownership chain.

The Notice of Removal and Corporate Disclosure Statement stated that KLB East, LLC and K L Breeden & Sons, LLC each had KLB Sons Holdings, LLC as its sole member. They also stated that two individuals domiciled in Texas were the "sole managers" of KLB Sons Holdings, LLC. But the Notice of Removal did not identify the member or members of KLB Sons Holdings, LLC or state their citizenship. The court therefore found that the papers did not sufficiently establish complete diversity.

Disposition

The court did not dismiss the action at this stage. It allowed defendants 30 days from the order to file an amended Notice of Removal expressly alleging the citizenship of all members of the defendants, including KLB Sons Holdings, LLC. If defendants fail to sufficiently allege complete diversity by that deadline, the action will be dismissed for lack of subject matter jurisdiction without further notice to any party. Judge Margaret M. Garnett signed the order on June 26, 2025.