JMG Group LLC v. Sasso
- Paul Engelmayer
- 1:20-cv-08520
- U.S. District Court · Southern District of New York
- 2
In JMG Group LLC v. Sasso, Judge Briccetti ordered plaintiff’s counsel to clarify diversity jurisdiction and White Plains assignment.
JMG Group LLC and its counsel must provide the court with information about the citizenship of the parties and an explanation for the White Plains assignment; the order also concerns Anthony Sasso and Artisian Capital Partners because their citizenship is relevant to federal jurisdiction.
What happened
JMG Group LLC sued Anthony Sasso and Artisian Capital Partners, relying on federal jurisdiction based on the parties’ citizenship. The complaint alleged that the plaintiff was a North Carolina citizen and that the defendants were New York citizens.
The court explained that an LLC’s citizenship depends on the citizenship of all its members, and a partnership’s citizenship depends on the citizenship of all its partners. The complaint did not identify those members and partners or their citizenships. It also did not explain why the case belonged in the White Plains courthouse under the district’s assignment rules.
Judge Vincent L. Briccetti ordered plaintiff’s counsel to submit, by October 27, 2020, a detailed letter identifying every party’s citizenship and explaining why the case was properly assigned to White Plains. The order did not dismiss the case or decide the underlying dispute.
The detailed version
- JMG Group LLC v. Sasso · No. 1:20-cv-08520
- Paul Engelmayer
- Oct. 20, 2020
Background
JMG Group LLC brought the action under the court’s jurisdiction over disputes between citizens of different states, known as diversity jurisdiction, under 28 U.S.C. § 1332(a)(1).
Jurisdictional deficiencies
For diversity jurisdiction, every plaintiff must be a citizen of a different state from every defendant. An individual’s citizenship is based on domicile—the person’s fixed home and principal establishment—not residence alone.
The citizenship of a limited liability company is based on the citizenship of each individual or entity member. The citizenship of a partnership is based on the citizenship of each partner. The complaint alleged that “Plaintiffs are residents and citizens of the State of North Carolina,” but did not identify each individual or entity member of JMG Group LLC or the citizenship of each member. It also alleged that “Defendants are residents and citizens of New York,” but did not identify the partners of Artisian Capital Partners or the citizenship of each partner.
White Plains assignment
The court also reviewed Rule 18 of the Southern District of New York’s rules for assigning civil cases. The complaint did not allege facts showing that the claim arose in whole or in major part in the specified northern counties, that any party resided there, or that another basis for assignment to White Plains applied. The court therefore stated that the case did not appear to have been properly designated for White Plains.
Order
Judge Vincent L. Briccetti ordered plaintiff’s counsel to submit a letter by October 27, 2020, explaining in detail: (1) the citizenship of every party, including the constituent members of the LLC and the partners of the partnership, so the court could determine whether it had subject matter jurisdiction; and (2) why the case was properly designated for assignment to the White Plains courthouse. The opinion does not state that the court dismissed the action or ruled on its underlying claims.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.