Maxwell v. Velasquez

Background

Ricky Maxwell filed an automobile-negligence case in the Supreme Court of the State of New York, County of Bronx. Nicholas Velasquez, Penske Truck Leasing Co., L.P., Penske Truck Leasing Corp., and Demakes Enterprises, Inc. later removed the case to federal court, relying on diversity jurisdiction. Diversity jurisdiction allows a federal court to hear certain cases involving citizens of different states when the amount in controversy exceeds $75,000.

Maxwell moved to send the case back to state court. The defendants did not respond to the motion or ask for more time to respond.

Court’s analysis

The court explained that the parties seeking removal had the burden of showing complete diversity of citizenship. The defendants’ removal papers described Maxwell as a resident of New York, Velasquez as a resident of Massachusetts, and Penske Truck Leasing Co. and Penske Truck Leasing Corp. as Pennsylvania corporations. But residence is not the same as citizenship or domicile, so those allegations did not properly establish diversity.

The court also agreed with Maxwell that Penske Truck Leasing Co. is a limited partnership. For diversity purposes, a limited partnership has the citizenship of each general and limited partner. The defendants did not identify the citizenship of any of that partnership’s members.

Ruling

Because the defendants did not establish diversity of citizenship, Judge Vernon S. Broderick held that the federal court lacked subject-matter jurisdiction. The court granted Maxwell’s motion to remand, remanded the case to the Supreme Court of the State of New York, County of Bronx, and directed the Clerk of Court to close the federal case.