Kolomiichuk v. Town Sports International Holdings, Inc.
- Kenneth Karas
- 7:18-cv-01223
- U.S. District Court · Southern District of New York
- 2
In Kolomiichuk v. Town Sports, Judge Karas ordered briefs on possible class-jurisdiction problems; he did not yet decide whether to dismiss the case.
Mykola Kolomiichuk, the defendants, and the proposed class members, particularly the proposed non-New York classes.
What happened
In Kolomiichuk v. Town Sports International Holdings, Inc., Mykola Kolomiichuk brought state-law claims against Town Sports International Holdings, Inc. and Town Sports International, LLC for himself and proposed classes of people allegedly charged more than their membership agreements allowed.
The court noted that Kolomiichuk and the defendants are citizens of New York. It also noted that federal class-action jurisdiction may be unavailable when the defendants and more than two-thirds of proposed class members are citizens of the state where the case was filed.
Judge Kenneth M. Karas ordered the parties to submit letter briefs addressing whether the case should be dismissed for lack of jurisdiction and whether the case must be dismissed if Kolomiichuk cannot adequately represent proposed non-New York classes. The order did not decide those questions or the pending motions for summary judgment and class certification.
The detailed version
- Kolomiichuk v. Town Sports International Holdings, Inc. · No. 7:18-cv-01223
- Kenneth Karas
- July 13, 2020
Background
Mykola Kolomiichuk brought a purported diversity action against Town Sports International Holdings, Inc. and Town Sports International, LLC, referred to together as TSI or the defendants. He asserted several state-law claims on behalf of himself and proposed classes of people who allegedly were charged monthly dues exceeding the amounts stated in their membership agreements.
Kolomiichuk alleged that the defendants operated about 150 fitness clubs under several names, including New York Sports Clubs, and that more than 100 of those clubs operated as New York Sports Clubs. He alleged federal jurisdiction under the class-action jurisdiction statute, 28 U.S.C. § 1332(d)(2)(A), based on the amount in controversy, the proposed class size, and the citizenship of the parties and class members.
Jurisdictional concern
The court noted that 28 U.S.C. § 1332(d)(4) removes federal class-action jurisdiction in circumstances including when the defendants and more than two-thirds of all proposed class members are citizens of the state where the action was originally filed. The opinion states that both Kolomiichuk and the defendants are citizens of New York.
The court emphasized that it has an independent duty to determine whether subject-matter jurisdiction exists. The opinion did not decide whether jurisdiction was lacking. It also did not decide whether Kolomiichuk could adequately represent proposed non-New York classes.
Order
The court directed the parties to submit supplemental letter briefs by July 20, 2020, at 5 p.m., with each brief limited to five pages. The briefs were to address: (1) whether the case should be dismissed for lack of jurisdiction at that stage, and (2) whether the case must be dismissed for lack of jurisdiction if Kolomiichuk could not adequately represent the proposed non-New York classes.
The opinion identifies the defendants’ motion for summary judgment and Kolomiichuk’s motion for class certification as pending before the court, but it does not rule on either motion. The order therefore addressed a jurisdictional issue without reaching the merits of the claims.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.