Lowe v. Document Publishing LLC
Lowe v. Document Publishing LLC
Trial Court Opinion
UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK PETER LOWE and DEIMANTE SEPELEVICIUTE, Plaintiffs, Case No. 1:23-cv-03203 -against- (JLR) DOCUMENT PUBLISHING LLC et al., ORDER Defendants.
JENNIFER L. ROCHON, United States District Judge: Plaintiffs filed their Complaint in the instant action on April 18, 2023. ECF No. 1. The Complaint alleges subject matter jurisdiction based on diversity of citizenship. Id. ¶ 6. It alleges that Plaintiffs are citizens of the United Kingdom, and that Defendant, Document Publishing LLC, is a “citizen of New York.” Id. ¶ 6. Plaintiffs have not filed a disclosure statement pursuant to Federal Rule of Civil Procedure (“Rule”) 7.1. “For diversity purposes, a corporation is deemed to be a citizen both of the state in which it has its principal place of business and of any state in which it is incorporated.” Universal Licensing Corp. v. Paola del Lungo S.p.A.,
293 F.3d 579, 581(2d Cir. 2002) (citing
28 U.S.C. § 1332(c)(1)). A limited liability company is deemed to be a citizen of each state of which its members are citizens. See, e.g., Handelsman v. Bedford Vill. Assocs. L.P.,
213 F.3d 48, 51-52 (2d Cir. 2000). That means that, “if any of an LLC’s members are themselves non- corporate entities, then a plaintiff must allege the identity and citizenship of their members, proceeding up the chain of ownership until it has alleged the identity and citizenship of every individual and corporation with a direct or indirect interest in the LLC.” U.S. Liab. Ins. Co. v. M Remodeling Corp.,
444 F. Supp. 3d 408, 410 (E.D.N.Y. 2020). Furthermore, “[d]iversity jurisdiction is defeated if there are foreign entities on both sides of the litigation.” Timsit v. Schwartz, No. 20-cv-5446 (EK)(LB),
2020 WL 13581661, at (E.D.N.Y. Dec. 23, 2020) (citing Bayerische Landesbank, NY Branch v. Aladdin Cap. Memt. LLC,
692 F.3d 42, 49(2d Cir. 2012)). Thus, if even one member of Defendant LLC is a citizen of a foreign state the Court lacks diversity jurisdiction. See TLF CBRL LLC v. Societe Generale, No. 20-cv-2367 (PKC),
2020 WL 1304143, at *1 (S.D.N.Y. Mar. 17, 2020) (“If one of the members of the plaintiff LLC or the plaintiff LP is a foreign citizen, then there would be aliens on two sides of the case and the Court would not have diversity jurisdiction.”). Rule 7.1 requires that a party file a disclosure statement “with its first” appearance or pleading. The form, which is available at https://www.nysd.uscourts. gov/forms/rule-71- statement, further requires a plaintiff to “name and identify the citizenship” of each member of an LLC. Plaintiffs have not satisfied these requirements here. Accordingly, Plaintiffs shall, by May 3, 2023, file a completed Rule 7.1 Disclosure Statement, which shall include all necessary information to establish subject-matter jurisdiction based on diversity as set forth above. Dated: April 26, 2023 New York, New York SO ORDERED.
United States District Judge
Reference
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