Gonzalez v. Apache Industries LLC

Background

Defendants filed a notice of removal on April 3, 2020, seeking to move the case from state court to the U.S. District Court for the Southern District of New York. The opinion does not describe the underlying claims.

Defects in the Removal Notice

The court found two procedural defects. First, the notice did not include any process, pleadings, or orders from the state-court action, although federal law requires a removal notice to include those materials. The court explained that this requirement allows the federal court to examine the underlying allegations and determine whether removal is appropriate.

Second, the notice did not allege the citizenship of the members of Apache Industries LLC at either of the two relevant times: when the state action began and when the defendants sought removal. The court explained that, for diversity jurisdiction, an LLC generally has the citizenship of each of its members, and diversity must exist at both times.

Ruling

The court stated that a district court may remand a case on its own for a procedural defect within 30 days after the notice of removal is filed. Judge Lorna G. Schofield ordered that the matter be summarily remanded to state court because the defendants’ notice of removal was procedurally defective. Under the order, the clerk was directed to mail a certified copy of the opinion and order to the Supreme Court of the State of New York, Bronx County, and to close the federal case.