Empery Asset Master Ltd. v. Healthlynked Corp.
- Lorna Schofield
- 1:20-cv-06993
- U.S. District Court · Southern District of New York
- 2
In Empery Asset Master v. Healthlynked, Judge Schofield remanded the case because the removal notice inadequately alleged the parties’ citizenship.
The parties to the removed action; the case returns to state court and the federal case is closed.
What happened
Empery Asset Master Ltd. and other plaintiffs sued Healthlynked Corp. in state court. Healthlynked removed the case to federal court, relying on diversity jurisdiction, which requires the parties to be citizens of different states or foreign countries.
The court found that the removal notice did not adequately allege the parties’ citizenship at the time the lawsuit began and when the case was removed. The notice did not state how long Healthlynked was a citizen of Nevada and Florida, Empery Asset Master Ltd.’s principal place of business, or the citizenships of the partners of two plaintiff partnerships.
Judge Lorna G. Schofield ordered the matter summarily remanded to the Supreme Court of the State of New York, New York County, because the removal notice was procedurally defective. The federal clerk was directed to send the state court a certified copy of the order and close the federal case.
The detailed version
- Empery Asset Master Ltd. v. Healthlynked Corp. · No. 1:20-cv-06993
- Lorna Schofield
- Sept. 14, 2020
Background
Healthlynked Corp. filed a notice of removal on August 28, 2020, transferring the action from state court to the U.S. District Court for the Southern District of New York. The notice relied on diversity jurisdiction, which allows a federal court to hear certain disputes between citizens of different states or foreign countries.
Citizenship Allegations Required
The court explained that when diversity is the only basis for removal, diversity must exist both when the state-court action begins and when removal is sought. For diversity purposes, a partnership has the citizenship of all its partners. A corporation is a citizen of every state or foreign country where it is incorporated and of the state or foreign country where it has its principal place of business.
Defects in the Notice of Removal
The court found that the notice of removal did not allege the period during which Healthlynked was a citizen of Nevada and Florida. It also did not allege Empery Asset Master Ltd.’s principal place of business or the citizenships of the partners of Empery Tax Efficient, LP and Empery Tax Efficient II LP. These allegations were required for both the time the action began and the time of removal.
Ruling
Judge Lorna G. Schofield ordered that the matter be summarily remanded to state court. The order states that Healthlynked’s notice of removal was procedurally defective. Under section 1447(c), the clerk was directed to mail a certified copy of the opinion and order to the Supreme Court of the State of New York, New York County, and the clerk was also directed to close the federal case.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.