Liberty Harbor Coffee Inc. v. Moss
1:25-cv-01335
S.D.N.Y.May 23, 2025Background
- Plaintiffs (Liberty Harbor Coffee Inc. and NYNJ Coffee2 LLC) brought a breach of contract suit in New York state court against Maggie Moss and Moss Business Consulting LLC, regarding marketing, management, and branding services.
- Defendants removed the case to federal court, relying on diversity jurisdiction under 28 U.S.C. § 1332(a), claiming all plaintiffs are citizens of New York/New Jersey, and all defendants are citizens of Colorado.
- Procedural back-and-forth occurred over several amended removal notices to clarify the citizenship and domicile of the LLC members and individuals, especially regarding Defendant Moss (a student in Colorado but previously in New York).
- Plaintiffs moved to remand back to state court, arguing lack of complete diversity because Moss is still domiciled in New York, and at least one plaintiff is also a New York citizen.
- Defendants submitted evidence of Moss’s Colorado domicile (residence, employment, voter registration, driver's license, declared intent to remain), despite her status as a PhD student.
- The court stayed decision on Defendants' pending motion to dismiss until resolution of the jurisdictional (remand) motion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Moss is domiciled in New York or Colorado | Moss is a temporary Colorado resident, intending to return NY | Moss changed domicile to Colorado | Moss is domiciled in Colorado—complete diversity exists |
| Citizenship of Jersey Social (LLC Plaintiff) | Jersey Social and/or its members are NY citizens | Any NY membership doesn't destroy diversity | Court finds at least dual NY/NJ citizenship, not dispositive |
| Citizenship of Moss Business Consulting LLC | LLC is a NY citizen based on state of formation or business | LLC’s citizenship follows Moss’s citizenship only | LLC is only a citizen of Colorado, per sole member Moss |
| Diversity sufficiency for federal jurisdiction | Complete diversity is lacking, so no removal jurisdiction | Complete diversity exists between all parties | Court finds complete diversity; denies motion to remand |
Key Cases Cited
- Herrick Co. v. SCS Commc’ns, Inc., 251 F.3d 315 (2d Cir. 2001) (diversity jurisdiction requires complete diversity between all adverse parties)
- Palazzo ex rel. Delmage v. Corio, 232 F.3d 38 (2d Cir. 2000) (change of domicile requires residence and intent to remain at new location)
- Handelsman v. Bedford Vill. Assocs. Ltd. P’ship, 213 F.3d 48 (2d Cir. 2000) (LLC's citizenship is that of each of its members)
- Advani Enters., Inc. v. Underwriters at Lloyds, 140 F.3d 157 (2d Cir. 1998) (party seeking federal jurisdiction bears burden to establish diversity)
- Strawbridge v. Curtiss, 7 U.S. (3 Cranch) 267 (1806) (standard for complete diversity in diversity jurisdiction)