Melrose North LLC v. Falls Lake National Insurance Company

Background

The plaintiffs—Melrose North LLC, Melrose Housing Development Fund Corporation, Home Builders 1 L.P., Ace Industries NY LLC, and Federated Mutual Insurance Company—brought the action against Falls Lake National Insurance Company. They invoked diversity jurisdiction under 28 U.S.C. § 1332, which generally requires complete diversity: no plaintiff may share citizenship with the defendant, and the amount-in-controversy requirement must also be met.

The complaint alleged citizenship information for some entities, including the corporations, limited liability companies, limited partnership, and defendant. But the court explained that an LLC is a citizen of every state where its members are citizens. A limited partnership is a citizen of every state where its general and limited partners are citizens. The complaint did not affirmatively allege the citizenship of each member of the plaintiff LLCs or the citizenship of each general and limited partner of the LP Plaintiff.

Court’s Analysis

The court held that these missing allegations meant the complaint did not properly establish diversity jurisdiction. The order addressed the adequacy of the jurisdictional allegations; it did not decide the parties’ underlying dispute.

Order

The court ordered the plaintiffs to amend their complaint on or before July 22, 2025, to allege the citizenship of each person or entity comprising the plaintiff LLCs and the citizenship of each general and limited partner of the LP Plaintiff. The court stated that, if the plaintiffs could not truthfully amend the complaint to allege complete diversity, the complaint would be dismissed for lack of subject matter jurisdiction without further notice to either party. Judge Jennifer L. Rochon issued the order.