Lebron v. Lozovyi
- Rochon
- 1:22-cv-08027
- U.S. District Court · Southern District of New York
- 2
In Lebron v. Lozovyi, Judge Rochon ordered proof of citizenship to assess diversity jurisdiction and warned that remand could follow.
Jesus Lebron, Mykola Lozovyi, Sergei Tarasenko, and GL Group Inc.; the order required them to establish citizenship for diversity-jurisdiction purposes and set related filing and service deadlines.
What happened
In Lebron v. Lozovyi, the defendants removed the action from New York state court to federal court, claiming that the parties were citizens of different states. The defendants identified some parties’ residences and described GL Group Inc. as an Illinois corporation, while the plaintiff’s complaint described GL Group as organized under New York law and having a place of business there.
The court found that the removal notice did not adequately establish the parties’ citizenship. It ordered the parties to file a joint letter supported by sworn affidavits stating the citizenship of the plaintiff and each defendant. If the parties could not establish a good-faith basis for complete diversity, the action would be sent back to the New York state court.
Judge Jennifer L. Rochon also ordered the defendants to serve the order on the plaintiff within two business days and file proof of service. The plaintiff’s counsel must file a notice of appearance within two business days after service.
The detailed version
- Lebron v. Lozovyi · No. 1:22-cv-08027
- Rochon
- Sept. 22, 2022
Background
Defendants removed this action from the Supreme Court of New York, Bronx County, on September 20, 2022. They asserted that the federal court had diversity jurisdiction under 28 U.S.C. § 1332(a)(1), which generally requires complete diversity of citizenship between the parties and an amount in controversy meeting the statutory requirement.
The notice of removal alleged that Jesus Lebron was a citizen of New York State. It alleged that Mykola Lozovyi resided in Pennsylvania and appeared to allege that Sergei Tarasenko resided in Florida. It also described GL Group Inc. as an Illinois corporation with its principal place of business in Illinois. In contrast, Lebron’s verified complaint alleged that GL Group was organized under New York law and had a place of business in New York.
Court’s Analysis
The court explained that an individual’s citizenship for diversity purposes depends on domicile—the person’s true, fixed home and principal establishment—not merely residence. It also explained that a corporation is a citizen of both the state where it is incorporated and the state where it has its principal place of business.
The court concluded that the notice of removal did not adequately allege the citizenship of the parties. The opinion therefore did not determine whether complete diversity actually existed or whether the federal court ultimately had jurisdiction over the action.
Order
The court ordered the parties to file, on or before October 6, 2022, a joint letter supported by one or more sworn affidavits stating the citizenship of Lebron and each of the three defendants for jurisdictional purposes. If the parties were unable to allege a good-faith basis for complete diversity by that date, the action would be remanded to the Supreme Court of New York, Bronx County, without further notice.
The court also directed the defendants to serve Lebron with the order within two business days and file proof of service on the docket. Counsel for Lebron was directed to file a notice 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.