Aulicino v. B&Z Auto Enterprises LLC

Background

B&Z Auto Enterprises LLC removed the action from the Supreme Court of New York, Bronx County, on May 6, 2024. It asserted that the federal court had diversity jurisdiction under 28 U.S.C. §§ 1332(a)(1) and 1441(a). The removal notice alleged that Matthew M. Aulicino was an individual residing in Florida and that B&Z had its principal place of business in New York. B&Z therefore asserted that Aulicino was a Florida citizen and that B&Z was a New York citizen.

Citizenship of the LLC

The court explained that a limited liability company is considered a citizen of every state where its members are citizens. A removal notice based on diversity jurisdiction must therefore identify the citizenship of each person who is an LLC member and, for any entity member, the entity’s place of incorporation and principal place of business. If an entity member is itself an LLC, the filing must provide the same information about that LLC’s membership.

B&Z’s Rule 7.1 statement identified two members: “Bobby Albert—New York” and “Denis & Co Holdings LLC—New York.” It did not identify the membership of Denis & Co Holdings LLC. The court concluded that the removal notice and Rule 7.1 statement did not fully establish the defendant LLC’s citizenship.

Order

The court ordered B&Z to amend its removal notice by May 17, 2024. The amendment must allege the citizenship of every constituent person or entity comprising B&Z, including the required information for corporate members and the membership of any LLC member.

The court further ordered that, if B&Z could not truthfully allege complete diversity of citizenship by that deadline, the action would be remanded to the Supreme Court of New York, Bronx County, without further notice. B&Z also had to serve Aulicino with the order within two business days and file proof of service. Aulicino’s counsel had to file a notice of appearance within two business days after service.