Knox v. LMC Trucking Corp.

Background

Defendants filed a notice removing Lonnie Knox’s case from state court to the U.S. District Court for the Southern District of New York on April 28, 2022. The court reviewed whether the notice adequately established federal diversity jurisdiction, which generally requires the parties to be citizens of different states and the amount in controversy to exceed $75,000.

Deficiencies in the Removal Notice

The notice did not allege the citizenship of Plaintiff Lonnie Knox or Defendant Jorge A. Panchame. To the extent it alleged Knox’s residence, it did not identify the relevant time period. The court explained that citizenship for diversity purposes depends on domicile, not simply residence, and must exist both when the state-court action began and when removal was sought.

The notice also did not allege facts adequate to show that the amount in controversy exceeded $75,000. The defendants’ general statement that the case sought more than $75,000 was insufficient. The court further found that the complaint’s generalized allegations of pain, disability, injuries, damages, and economic losses did not establish the jurisdictional amount. Knox’s references to the jurisdictional limits of lower New York courts and to economic loss or serious injury under New York’s Insurance Law also did not establish that more than $75,000 was in controversy.

Disposition

The court ordered that the matter be remanded to state court. Under 28 U.S.C. § 1447(c), the Clerk was directed to mail a certified copy of the order to the Supreme Court of the State of New York, Bronx County. The Clerk was also directed to close the federal case. The order addressed the basis for federal jurisdiction and did not decide the underlying claims.