REILS Finance SPV v. CIP 1300 U Street Owner, LLC
- Jesse Furman
- 1:22-cv-07280
- U.S. District Court · Southern District of New York
- 2
In REILS Finance SPV v. CIP 1300 U Street Owner, Judge Furman required a citizenship amendment or would dismiss without prejudice.
REILS Finance SPV must amend its complaint to allege the citizenship of all members of the defendant limited liability company, use a redline for the amended filing, serve the order on the defendants, and file proof of service. The court stated that it would dismiss the case without prejudice if the citizenship allegations were not adequately amended by December 7, 2022.
What happened
In REILS Finance SPV v. CIP 1300 U Street Owner, LLC, the court found that REILS Finance SPV’s second amended complaint still did not properly allege the parties’ citizenship for diversity jurisdiction.
The court gave REILS Finance SPV until December 7, 2022, to amend the complaint and adequately allege the citizenship of all members of the defendant limited liability company. If it could not do so, the court said it would dismiss the case without prejudice and without further notice.
Judge Jesse M. Furman also required REILS Finance SPV to serve the order on the defendants by mail within one business day, file proof of service by December 5, and include a redline with any amended filing.
The detailed version
- REILS Finance SPV v. CIP 1300 U Street Owner, LLC · No. 1:22-cv-07280
- Jesse Furman
- Dec. 1, 2022
Background
The court had previously ordered REILS Finance SPV to address the citizenship of trusts and correct its allegations about the citizenship of all parties. On December 1, 2022, REILS Finance SPV filed a second amended complaint. The court concluded that the filing still had jurisdictional pleading defects.
In particular, the complaint alleged the residence of the natural person who was the sole member of two entities that were members of one defendant. The court explained that residence alone does not establish citizenship for purposes of diversity jurisdiction, which is federal jurisdiction based on the parties’ citizenship.
Court’s action
The court gave REILS Finance SPV until December 7, 2022, to amend its complaint again and adequately allege the citizenship of all members of the defendant limited liability company. The court stated that, if REILS Finance SPV 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 REILS Finance SPV that any amended or corrected filing must include a redline showing the differences between the original and revised filing. REILS Finance SPV was directed to serve a copy of the order on the defendants by mail within one business day and docket proof of service by December 5, 2022.
Ruling
Judge Jesse M. Furman entered the order requiring the further amendment and related service and filing steps. The order was based on the adequacy of the jurisdictional allegations, not on the underlying merits of the parties’ dispute.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.