1225 Randall Avenue LLC v. Hiscox Insurance Company Inc.
2:25-cv-00697
| E.D.N.Y | Apr 25, 2025Background
- 1225 Randall Avenue LLC filed a state court action in New York against Hiscox Insurance Company, seeking a declaration that Hiscox must indemnify it in a separate case.
- Hiscox Insurance removed the case to federal court, claiming diversity jurisdiction under 28 U.S.C. § 1332(a).
- The court issued an order to show cause, instructing Hiscox to prove complete diversity, particularly the citizenship of all 1225 Randall Avenue LLC members.
- Hiscox provided evidence about the LLC’s members, including individuals purportedly domiciled in New York and a corporate member, Leviyor Investments (alleged to have Israeli members).
- The court found that while Hiscox showed the individual members’ New York domiciles, it failed to properly establish the domicile/citizenship of the Leviyor Investments members.
- Lacking sufficient evidence of complete diversity, the court ruled it lacked subject matter jurisdiction and remanded the case to state court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether diversity jurisdiction exists | Asserted diversity not contested | Claimed diversity based on parties' citizenships | Defendant failed to prove complete diversity; remand |
| Citizenship of LLC members for diversity | Not directly addressed | Provided evidence of residences/members | Insufficient proof; residence ≠ domicile |
| Sufficiency of foreign language evidence | Not raised | Submitted untranslated Hebrew document | Untranslated docs cannot be considered by the court |
| Amount in controversy | Not in dispute | Established over $75,000 requirement | Amount satisfied; subject matter jurisdiction still fails |
Key Cases Cited
- Platinum-Montaur Life Scis., LLC v. Navidea Biopharms., Inc., 943 F.3d 613 (2d Cir. 2019) (party invoking federal jurisdiction bears the burden of proof; federal courts have limited jurisdiction)
- Carter v. HealthPort Techs., LLC, 822 F.3d 47 (2d Cir. 2016) (LLC citizenship determined by all members’ citizenships)
- Van Buskirk v. United Grp. of Cos., 935 F.3d 49 (2d Cir. 2019) (domicile, not mere residence, controls individual citizenship for diversity)
- Bayerische Landesbank v. Aladdin Cap. Mgmt. LLC, 692 F.3d 42 (2d Cir. 2012) (corporate citizenship for diversity)
- Joseph v. Leavitt, 465 F.3d 87 (2d Cir. 2006) (courts have an independent obligation to assess subject matter jurisdiction)