Rosenfield & Company, PLLC v. Trachtenberg, Rodes & Friedberg LLP

Background

The court required Rosenfield & Company, PLLC (R&C) to supplement its allegations about the parties’ citizenship so the court could determine whether diversity jurisdiction existed. Diversity jurisdiction requires complete diversity: no plaintiff and no defendant may be citizens of the same state. For business entities such as a limited liability company and a limited liability partnership, the court explained that citizenship is based on the citizenship of their members and partners.

R&C first submitted a filing that did not identify the members and partners of the relevant entities as the court had ordered. On December 12, 2022, the court identified the deficiencies and gave R&C one final opportunity to establish complete diversity.

Analysis

R&C’s December 19 submission stated that R&C had members who were residents of New Jersey and Florida, including Jan Dulman and Paul Kaplan. It also stated that defendant Trachtenberg, Rodes, & Friedberg LLP (TR&F) had partners who were residents of at least New Jersey and New York, including David Trachtenberg, who was and continued to be a New Jersey resident.

The court concluded that R&C was a citizen of New Jersey because at least one of its members was a New Jersey citizen. It likewise concluded that TR&F was a citizen of New Jersey because at least one of its partners was a New Jersey citizen. The court therefore found that complete diversity was lacking and that it lacked subject-matter jurisdiction, meaning legal authority to hear the action.

Disposition

The court ordered that the action be DISMISSED without prejudice for lack of subject-matter jurisdiction. It canceled all pending deadlines and conferences, denied all pending motions as moot, and directed the clerk to close the case. Judge Jennifer L. Rochon issued the order on December 19, 2022.