Ramos v. Eddy
- Gabriel Gorenstein
- 1:21-cv-01649
- U.S. District Court · Southern District of New York
- 2
In Ramos v. Eddy, Judge Gorenstein ordered defendants to clarify an LLC’s citizenship so the court could assess diversity jurisdiction.
The defendants, who were required to provide sworn information about VR Kendall Trucking, LLC and its members so the court could assess subject-matter jurisdiction.
What happened
Ramos v. Eddy was removed from New York state court to federal court based on claimed diversity jurisdiction. The court had previously required defendants to provide information about the citizenship of each person or entity connected to VR Kendall Trucking, LLC.
The court found defendants’ amended filing unclear because it described the LLC as “incorporated” and referred to a “principal,” rather than identifying its members. The court ordered defendants to submit a sworn statement identifying the LLC’s legal form, its members, and the citizenship or formation details required for each member.
Judge Gorenstein directed defendants to file the statement and supporting information by May 18, 2021. The order addressed whether diversity jurisdiction was properly established and did not decide the underlying claims.
The detailed version
- Ramos v. Eddy · No. 1:21-cv-01649
- Gabriel Gorenstein
- May 11, 2021
Background
The case was removed from the Supreme Court of New York, Bronx County, on February 25, 2021. Defendants asserted that the federal court had diversity jurisdiction under 28 U.S.C. § 1332. Diversity jurisdiction generally requires the parties to be citizens of different states and requires the jurisdictional facts to be adequately alleged.
On February 26, 2021, the court ordered defendants to amend their notice of removal to allege the citizenship of each constituent person or entity comprising the defendant limited liability company or limited partnership. Defendants filed an amended notice of removal on March 9, 2021.
Court’s concerns
The court found the amended notice unclear in two respects. It described VR Kendall Trucking, LLC as having been “incorporated” in Pennsylvania, even though a limited liability company is formed through an organization filing rather than incorporation. It also referred to the LLC as having a “principal.” The court explained that Pennsylvania law refers to an LLC’s members and that determining an LLC’s citizenship for diversity purposes requires examining the citizenship of all of its members.
Order
To ensure that it properly assessed subject-matter jurisdiction—the court’s authority to hear the case—the court directed defendants to file a statement under oath from a person with personal knowledge. The statement must identify the legal corporate character of VR Kendall Trucking, LLC. If it is a limited liability company, defendants must attach an up-to-date document listing its members.
For each member who is a natural person, the statement must provide that person’s state of citizenship. For each member that is an entity, it must provide the entity’s place of incorporation or other formation and principal place of business. The statement must also explain the basis for the affiant’s knowledge, including the citizenship representations. The filing was due May 18, 2021.
The order did not determine whether diversity jurisdiction ultimately exists and did not address the merits of the underlying dispute.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.