Wells Advance LLC v. Carpenter
- Rochon
- 1:22-cv-09997
- U.S. District Court · Southern District of New York
- 2
In Wells Advance LLC v. Carpenter, Judge Rochon ordered citizenship allegations supporting diversity jurisdiction and warned the case may be remanded.
Wells Advance LLC, Nicole L. Carpenter, and counsel for Wells Advance are affected by the citizenship-allegation, service, and appearance deadlines.
What happened
Wells Advance LLC v. Carpenter began when Nicole L. Carpenter moved the case from New York state court to federal court, claiming the court had jurisdiction because the parties were citizens of different states. She alleged that she had an address in Texas and that Wells Advance was a limited liability company whose members were New York residents.
The court explained that a person's citizenship depends on their permanent home, while a limited liability company's citizenship depends on the citizenship of every member. It found that the filings did not properly establish either party's citizenship.
Judge Jennifer L. Rochon ordered Carpenter to file by December 5, 2022, a letter supported by sworn affidavits stating each party's citizenship. Judge Rochon warned that the case may be sent back to New York state court if Carpenter could not show a good-faith basis for complete diversity, and also issued deadlines for service and a notice of appearance.
The detailed version
- Wells Advance LLC v. Carpenter · No. 1:22-cv-09997
- Rochon
- Nov. 28, 2022
Background
Nicole L. Carpenter removed the action from the Supreme Court of the State of New York, County of New York, on November 23, 2022. She asserted that federal jurisdiction was proper under the diversity statute, 28 U.S.C. § 1332. Carpenter alleged that she was an adult with an address in Texas and that Wells Advance LLC's members were residents of New York.
Jurisdictional requirements
For diversity jurisdiction, an individual's citizenship is based on domicile—the person's true, fixed home and principal establishment, and the place to which the person intends to return. A limited liability company is a citizen of every state in which its members are citizens. The citizenship of each member must be affirmatively alleged. If an LLC has members that are themselves entities, the allegations must continue through the ownership chain until the citizenship of every relevant individual and corporation is identified.
The court found that Wells Advance LLC and Carpenter's citizenship had not been properly alleged.
Order
The court ordered Carpenter to file on the electronic docket, by December 5, 2022, a letter supported by one or more sworn affidavits alleging the citizenship of each party. If Carpenter could not allege a good-faith basis for complete diversity of citizenship, the action may be remanded to the Supreme Court of New York, County of New York, without further notice.
The court also directed Carpenter to serve Wells Advance with the order within two business days and file proof of service. Counsel for Wells Advance were 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.