Thor Equities, LLC v. Hiscox Insurance Company, Inc.
- Rochon
- 1:22-cv-07790
- U.S. District Court · Southern District of New York
- 2
In Thor Equities v. Hiscox, Judge Rochon ordered Hiscox to clarify the plaintiffs’ citizenship or face remand to state court.
Hiscox Insurance Company, Inc. was required to provide additional citizenship allegations supporting federal jurisdiction. The plaintiffs and their counsel were affected by the service and notice-of-appearance requirements. The case could be remanded to New York state court if Hiscox could not establish a good-faith basis for complete diversity.
What happened
Thor Equities, LLC v. Hiscox Insurance Company, Inc. was removed from New York state court after Hiscox claimed that the federal court had jurisdiction because the parties were citizens of different states.
The court found that Hiscox had not adequately identified the citizenship of the members of each plaintiff limited liability company. The order explained that an LLC has the citizenship of all its members, and that corporate members require additional citizenship information.
Judge Jennifer L. Rochon ordered Hiscox to amend its removal notice by September 26, 2022. If Hiscox could not provide a good-faith basis for complete diversity, the case would be sent back to the New York Supreme Court. The court also ordered service of the order and directed plaintiffs’ counsel to file notices of appearance.
The detailed version
- Thor Equities, LLC v. Hiscox Insurance Company, Inc. · No. 1:22-cv-07790
- Rochon
- Sept. 15, 2022
Background
Hiscox removed the action from the Supreme Court of New York, New York County, on September 12, 2022. It asserted federal jurisdiction based on diversity of citizenship under 28 U.S.C. § 1332.
The action had four plaintiffs, including Madison-Thor Manager LLC. Hiscox alleged that Madison-Thor Manager LLC was owned by Flatiron Partner LLC and Madison 212 Fifth Avenue Partners LLC. Hiscox further alleged that Robert Gladstone, a New York resident, was the managing member of Madison 212 Fifth Avenue Partners LLC. But it did not allege that Gladstone was the sole member or identify all members of that LLC.
Court’s Analysis
The court explained that a limited liability company is a citizen of every state where its members are citizens. Therefore, a removal notice relying on diversity jurisdiction must identify the citizenship of each individual member of an LLC and, for corporate members, the state of incorporation and principal place of business.
The court concluded that Hiscox’s notice of removal did not provide the required information for each entity comprising each plaintiff LLC.
Order
The court ordered Hiscox to amend its notice of removal by September 26, 2022, to allege the citizenship of each constituent person or entity comprising each plaintiff LLC, including the state of incorporation and principal place of business of any corporate entity member. The court stated that if Hiscox could not amend the notice to allege a good-faith basis for complete diversity, the action would be remanded to the Supreme Court of New York, New York County, without further notice.
The court also directed Hiscox to serve the order on the plaintiffs within two business days and file proof of service. Plaintiffs’ counsel were directed to file notices of appearance within two business days after service.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.