Colon v. The Stop & Shop Supermarket Company LLC
- Gabriel Gorenstein
- 1:24-cv-02182
- U.S. District Court · Southern District of New York
- 1
In Colon v. Stop & Shop, Judge Gorenstein ordered the defendant to clarify its diversity-jurisdiction allegations.
The Stop & Shop Supermarket Company LLC must clarify its ownership and corporate-citizenship allegations in its notice of removal; the case’s federal jurisdiction remains unresolved in this order.
What happened
Colon sued The Stop & Shop Supermarket Company LLC, which filed a notice removing the case to federal court based on diversity jurisdiction.
The court found the notice unclear because it identified Ahold U.S.A., Inc. as the LLC’s sole member but also said no other entity owned 10% or more, leaving uncertainty about other ownership interests. It also did not identify every state where Ahold was incorporated or the state where it had its main place of business.
Judge Gabriel W. Gorenstein directed the defendant to file a supplement clarifying its notice of removal by April 17, 2024.
The detailed version
- Colon v. The Stop & Shop Supermarket Company LLC · No. 1:24-cv-02182
- Gabriel Gorenstein
- Apr. 10, 2024
Background
Evelyn Elizabeth Colon sued The Stop & Shop Supermarket Company LLC. The defendant filed a notice of removal, seeking to proceed in federal court under diversity jurisdiction, which generally depends on the parties being citizens of different states and the required amount being in dispute.
Jurisdictional issue
The court explained that a limited liability company takes the citizenship of each of its members. It also explained that a corporation is a citizen of every state where it is incorporated and of the state where it has its principal place of business.
The defendant’s notice stated that its “sole member” was Ahold U.S.A., Inc. But the notice also stated that no other entity had an ownership interest of “10% or more,” which left open the possibility that another entity owned less than 10%. In addition, describing Ahold U.S.A., Inc. as a Delaware corporation did not identify each state where it was incorporated or the state where it had its principal place of business.
Order
The court directed The Stop & Shop Supermarket Company LLC to file a supplement to its notice of removal clarifying these matters by April 17, 2024. The opinion does not state a final ruling on whether diversity jurisdiction exists or address the underlying claims. The order was issued by United States Magistrate Judge Gabriel W. Gorenstein.
Read the full 1-page opinion on CourtListener, the free public archive maintained by the Free Law Project.