AKF Inc. v. Sierra Slot Source LLC
- Paul Gardephe
- 1:23-cv-01619
- U.S. District Court · Southern District of New York
- 4
In AKF Inc. v. Sierra Slot Source LLC, Judge Gardephe granted remand because the removal was defective and untimely.
AKF Inc., Sierra Slot Source LLC, Chilcoot Properties, LLC, Donald F. Dupont, Jr., and Suresh N. Naidu; the case was returned to New York state court, and the federal case was closed.
What happened
In AKF Inc. v. Sierra Slot Source LLC, AKF sought to keep the respondents’ bank accounts restrained while the parties’ arbitration proceeded. Respondent Suresh N. Naidu, representing himself, moved the case from New York state court to federal court, claiming federal jurisdiction based on the parties’ citizenship.
AKF asked the federal court to send the case back to state court. A magistrate judge recommended granting that request because the removal papers did not establish the citizenship of the limited liability company members, did not show that all required parties agreed to removal, and were filed too late. No party objected to the recommendation.
Judge Paul G. Gardephe found no obvious error, adopted the recommendation in full, and granted AKF’s motion to remand. The clerk was directed to return the case to New York Supreme Court, terminate all pending motions, and close the federal case.
The detailed version
- AKF Inc. v. Sierra Slot Source LLC · No. 1:23-cv-01619
- Paul Gardephe
- May 19, 2023
Background
AKF Inc., doing business as FundKite, brought an action under New York’s Civil Practice Law and Rules seeking an order restraining the bank accounts of Sierra Slot Source LLC, Chilcoot Properties, LLC, Donald F. Dupont, Jr., and Suresh N. Naidu while an arbitration among the parties was pending. AKF filed the action in New York Supreme Court, New York County. Naidu, representing himself, removed the case to the U.S. District Court, alleging diversity jurisdiction.
Recommendation to Remand
AKF moved to remand, meaning to return the case to state court. Magistrate Judge Gorenstein recommended granting the motion for three reasons: Naidu’s removal notice did not identify the citizenship of the members of the limited liability company respondents, which was needed to establish diversity jurisdiction; the notice showed only Naidu’s consent and did not show that the other parties consented to removal; and the notice was filed 171 days after service, making it untimely under the cited removal statutes.
Review of the Recommendation
No party filed objections within the required 14-day period. Judge Gardephe explained that failing to object generally waives further judicial review, but the court could still review the recommendation for clear error—an obvious mistake on the face of the record. The court reviewed the recommendation and found it thorough, well-reasoned, and free of clear error.
Ruling
Judge Gardephe adopted Magistrate Judge Gorenstein’s recommendation in its entirety and granted AKF’s motion to remand. The clerk was directed to remand the case to the Clerk of the Supreme Court of the State of New York, New York County, terminate all pending motions, and close the federal case.
Read the full 4-page opinion on CourtListener, the free public archive maintained by the Free Law Project.