Loancare LLC v. Dimont & Associates, LLC
- Jesse Furman
- 1:22-cv-09286
- U.S. District Court · Southern District of New York
- 2
In Loancare v. Dimont, Judge Furman gave Loancare until November 14, 2022, to properly plead diversity jurisdiction or face dismissal without prejudice.
Loancare, LLC was required to correct its jurisdictional allegations; the defendants and the case were also affected because the court warned that the case would be dismissed without prejudice if the deficiencies were not corrected.
What happened
In Loancare LLC v. Dimont & Associates, LLC, the court had ordered Loancare to amend its complaint to provide information showing the parties were citizens of different states. Loancare filed an amended complaint, but it still did not provide all the required information.
The amended complaint did not state the state of incorporation and principal place of business for the incorporated entities that made up Loancare. It also described one individual defendant's residency rather than citizenship. The court explained that residency alone does not establish citizenship for diversity jurisdiction.
Judge Jesse M. Furman gave Loancare until November 14, 2022, to amend its complaint again and adequately allege diversity of citizenship. The court stated that it would dismiss the case without prejudice and without further notice if Loancare could not do so. The court also reminded Loancare to file a redlined version with any amended or corrected filing.
The detailed version
- Loancare LLC v. Dimont & Associates, LLC · No. 1:22-cv-09286
- Jesse Furman
- Nov. 4, 2022
Background
On November 1, 2022, the court ordered Plaintiff Loancare, LLC, to amend its complaint to affirmatively allege the citizenship of each party. Loancare filed a first amended complaint on November 3, 2022, but the court found that it had not corrected the jurisdictional pleading deficiencies identified in the original complaint.
Jurisdictional Deficiencies
The court stated that Loancare had not alleged the state of incorporation and principal place of business of the incorporated entities comprising the plaintiff. The amended complaint also alleged the residency of the natural person comprising one defendant. The court explained that allegations of residency alone are insufficient to establish citizenship for purposes of diversity jurisdiction.
Ruling and Required Amendment
The court allowed Loancare until November 14, 2022, to amend its complaint and adequately allege diversity of citizenship. The court stated that, if Loancare could not do so by that date, it would dismiss the case without prejudice and without further notice to any party. The order did not itself dismiss the case. The court also reminded Loancare that any amended or corrected filing, including an amended pleading, must include a redline showing the differences between the original and revised filing.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.