Nostrum Laboratories, Inc. v. Eversana Life Science Services, LLC

Background

Nostrum Laboratories, Inc. originally filed this action in the Supreme Court of New York, New York County. Eversana Life Sciences Services, LLC removed the action to the U.S. District Court for the Southern District of New York, relying on diversity jurisdiction—a form of federal jurisdiction based on the parties' citizenship and the amount in dispute.

The complaint alleges that Nostrum is a New Jersey corporation with its principal places of business in New Jersey and Missouri. It identifies Eversana as a Wisconsin limited liability company. Eversana's notice of removal states that its sole member is LSCS Holdings, Inc., whose principal place of business is in Wilmington, Delaware. The notice does not state where LSCS Holdings, Inc. is incorporated.

Court's analysis

The court explained that, for diversity jurisdiction, a limited liability company's citizenship includes the citizenship of each of its members. The notice therefore needed to identify both the relevant information about LSCS Holdings, Inc. and the citizenship necessary to establish complete diversity. The court stated that subject-matter jurisdiction should be addressed at the beginning of a case and that it may raise jurisdictional issues on its own.

Ruling

Judge P. Castel ordered Eversana, within 14 days, to amend its removal petition to identify LSCS Holdings, Inc.'s place of incorporation. The court stated that if Eversana failed to amend or could not truthfully allege complete diversity of citizenship, the action would be remanded to state court for lack of subject-matter jurisdiction without further notice. The order did not itself remand the action.