Ricardo v. Rodriguez Ortiz

Background

Defendants filed a notice of removal on February 9, 2024, transferring the action from state court to the U.S. District Court for the Southern District of New York. The notice invoked diversity jurisdiction, which permits federal courts to hear certain civil cases involving parties from different states when the amount in controversy exceeds $75,000, excluding interest and costs.

Jurisdictional Defect

The court explained that diversity must be complete, meaning all opposing parties must be citizens of different states. A corporation's citizenship includes its state of incorporation and principal place of business. A limited liability company's citizenship generally depends on the citizenship of each of its members.

The notice of removal stated that the defendants “reside and maintain a business in New Jersey,” but it did not allege facts establishing Liam J. Transport, LLC's state of incorporation or principal place of business. It also did not allege facts establishing the citizenship of each member of that LLC. The court therefore found the notice of removal procedurally defective.

Ruling

The court ordered that the matter be remanded to state court. The clerk was directed to close the federal case and mail a certified copy of the order to the Supreme Court of the State of New York, Bronx County, under 28 U.S.C. § 1447(c). Judge Lorna G. Schofield did not decide the underlying claims in the action.