Gauge By Design, Ltd. v. Coldwater Direct LLC
- Alvin Hellerstein
- 1:20-cv-06230
- U.S. District Court · Southern District of New York
- 1
Gauge By Design v. Coldwater Direct: Judge Hellerstein dismissed the complaint for lack of diversity jurisdiction, allowing amendment within 30 days.
Gauge By Design, Ltd., whose complaint was dismissed, and Coldwater Direct LLC, whose members' citizenship was not identified in the complaint.
What happened
Gauge By Design, Ltd. sued Coldwater Direct LLC in federal court, relying on diversity of citizenship as the basis for federal jurisdiction. The opinion says Gauge By Design is incorporated and has its principal place of business in New York.
The court explained that an LLC has the citizenship of each of its members. Gauge By Design did not identify Coldwater Direct’s members or allege their citizenship, so the complaint did not establish complete diversity.
Judge Alvin K. Hellerstein dismissed the complaint for lack of jurisdiction, with leave to replead an adequate basis for complete diversity within 30 days of the order.
The detailed version
- Gauge By Design, Ltd. v. Coldwater Direct LLC · No. 1:20-cv-06230
- Alvin Hellerstein
- Aug. 12, 2020
Background
Gauge By Design, Ltd. sued Coldwater Direct LLC. Gauge By Design alleged that the federal court had diversity jurisdiction under 28 U.S.C. § 1332. The opinion states that Gauge By Design is a corporation incorporated in and with its principal place of business in New York.
Jurisdictional issue
For diversity jurisdiction, a limited liability company is considered a citizen of every state in which its members are citizens. The complaint did not identify Coldwater Direct’s members or allege their citizenship. As a result, the complaint did not establish complete diversity of citizenship.
Ruling
The court dismissed the complaint for lack of jurisdiction, with leave to replead an adequate basis for complete diversity no later than 30 days from the order. The opinion did not address the underlying claims.
Effect of the order
The dismissal concerned the alleged basis for federal jurisdiction. The order allowed Gauge By Design to replead the jurisdictional allegations within the stated 30-day period.
Read the full 1-page opinion on CourtListener, the free public archive maintained by the Free Law Project.