Beth Abraham-CNR Foundation v. Centerlight Health System Inc.

Background

Beth Abraham-CNR Foundation began the case by filing a complaint in New York State Supreme Court, New York County. The complaint asserted claims under the federal Racketeer Influenced and Corrupt Organizations Act, commonly called RICO, as well as state-law claims for fraud, breach of fiduciary duty, conversion, aiding and abetting fraud, aiding and abetting breach of fiduciary duty, aiding and abetting conversion, unjust enrichment, and money had and received. It also sought injunctive and declaratory relief and an accounting.

The defendants removed the case to the U.S. District Court for the Southern District of New York based on federal-question jurisdiction, meaning the case included a claim arising under federal law. On July 1, 2025, after removal, Beth Abraham-CNR Foundation filed an amended verified complaint that dropped all RICO claims and asserted only state-law claims.

Remand Request

Beth Abraham-CNR Foundation asked the federal court to remand, or return, the case to New York state court under 28 U.S.C. § 1447(c). The request was made with the defendants' consent.

The court explained that when state-law claims reached federal court through removal from state court, the federal court may dismiss the claims without prejudice or remand them to state court. It also noted that courts regularly remand cases when the plaintiff voluntarily removes all federal claims after removal.

Disposition

The court directed the Clerk of Court to remand the case to the New York State Supreme Court, New York County. The opinion did not decide the merits of any of the remaining state-law claims. The order was issued by Judge Lewis J. Liman.