1265 Broadway LLC v. Oakwood Worldwide LP

Background

Defendants Oakwood Worldwide (US) LP and Worldwide Corporate Housing, L.P. filed a notice of removal on May 27, 2021. The opinion identifies 1265 Broadway LLC as the plaintiff.

Defect in the Removal Notice

The court found that the notice of removal did not allege several facts needed to establish diversity jurisdiction. Specifically, it did not allege:

- the defendants’ citizenship when the state-court action began; - the principal places of business of Pine SR (US) LLC and Pine G.P. (US) LLC, identified as partners of Oakwood Worldwide (US) LP; - the principal places of business of Oakwood Worldwide (US) LP and Worldwide Corporate Housing GP Holdings, LLC, identified as partners of Worldwide Corporate Housing, L.P.; or - the citizenship, rather than merely the residency, of the members and partners of the relevant entities.

The court stated that when diversity is the sole basis for removal, diversity must exist both when the original action is filed in state court and when removal is sought. It also stated that the citizenship of a limited liability company or limited partnership depends on the citizenship of all its members, and that citizenship for diversity purposes depends on domicile rather than residence alone.

Ruling

The court held that the defendants’ notice of removal was procedurally defective and ordered that the matter be summarily remanded to state court. Under the cited statute, 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. The clerk was also directed to close the federal case. Judge Lorna G. Schofield did not decide the underlying dispute’s merits.