WHITEvoid GmbH v. TRANSFIX Productions, LLC
- Rochon
- 1:23-cv-05288
- U.S. District Court · Southern District of New York
- 2
In WHITEVOID GMBH v. TRANSFIX PRODUCTIONS, Judge Rochon ordered more citizenship information before deciding whether diversity jurisdiction exists.
WHITEVOID GMBH must provide additional information about its members’ citizenship by July 10, 2023; the case could be dismissed for lack of subject-matter jurisdiction if complete diversity cannot be shown.
What happened
WHITEVOID GMBH sued TRANSFIX PRODUCTIONS, LLC, claiming federal jurisdiction based on the parties’ citizenship. The complaint described the companies’ places of business and organization but did not provide enough information about WHITEVOID GMBH’s citizenship.
The court explained that an LLC’s citizenship generally depends on the citizenship of all its members, not simply where the LLC was organized or has its principal place of business. The court therefore required more information before deciding whether the case could proceed.
Judge Jennifer L. Rochon ordered WHITEVOID GMBH to file, by July 10, 2023, a letter supported by sworn affidavits identifying the citizenship of all its members or explaining why a different citizenship rule applies. The court said the case may be dismissed for lack of subject-matter jurisdiction if complete diversity cannot be shown.
The detailed version
- WHITEvoid GmbH v. TRANSFIX Productions, LLC · No. 1:23-cv-05288
- Rochon
- June 26, 2023
Background
WHITEVOID GMBH filed a complaint against TRANSFIX PRODUCTIONS, LLC. The complaint alleged that the court had diversity jurisdiction under 28 U.S.C. § 1332. It described WHITEVOID GMBH as a company with limited liability under German law, with its principal place of business in Berlin, Germany. It described TRANSFIX PRODUCTIONS, LLC as a New York limited liability company with its principal place of business in Dobbs Ferry, New York, and alleged that its only member, Michael Blatter, was domiciled in New York.
Jurisdictional issue
For diversity jurisdiction, a limited liability company is generally a citizen of every state where its members are citizens. If an LLC has members that are themselves entities, the citizenship inquiry continues through the ownership chain until the citizenship of every individual and corporation with a direct or indirect interest is identified. The place where an LLC was organized and its principal place of business do not by themselves determine its citizenship for this purpose.
The court determined that WHITEVOID GMBH had not alleged enough facts to establish its citizenship. The order did not decide whether the parties actually have complete diversity of citizenship or reach the merits of WHITEVOID GMBH’s claims.
Order
Judge Jennifer L. Rochon ordered WHITEVOID GMBH to file, no later than July 10, 2023, a letter supported by one or more sworn affidavits. The filing must provide the information needed for the court to exercise subject-matter jurisdiction, including the identity and citizenship of all of WHITEVOID GMBH’s members, or show why WHITEVOID GMBH’s citizenship should be determined differently from that of a limited liability company.
The court stated that the action may be dismissed for lack of subject-matter jurisdiction without further notice if WHITEVOID GMBH cannot allege complete diversity by that deadline. The order itself did not dismiss the action.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.