Sloan v. Carrington Mortgage Services, LLC
1:17-cv-00046
W.D. Va.Jan 23, 2018Background
- Four related state-court lawsuits filed in Virginia alleging trespass and conversion against Carrington Mortgage Services, LLC (CMS) and others; complaints are substantively identical and arise from the same events and two tracts of real property.
- Defendants removed all four cases to federal court based on diversity jurisdiction and amount in controversy under 28 U.S.C. § 1332.
- Plaintiffs moved to remand, arguing the Notice of Removal fails to allege the citizenship of each CMS member (an LLC) with sufficient specificity.
- CMS moved to consolidate the four actions; plaintiffs consented to consolidation for pretrial/discovery but opposed consolidation for trial.
- The court found the complaints raise common questions of law and fact and that consolidation for all purposes (including trial) was appropriate.
- The court concluded the Notice of Removal likely met the short-pleading standard for jurisdictional allegations but allowed CMS seven days to file an amended notice specifying the citizenship of each LLC member; remand was denied conditioned on that amendment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether cases should be consolidated | Consolidation for trial would prejudice plaintiffs and limit punitive damages recovery | Cases share identical facts and legal issues; consolidation conserves resources and avoids inconsistent rulings | Granted consolidation for all purposes, including trial |
| Whether removal adequately pleads diversity for an LLC defendant | Notice fails to identify states of citizenship for individual LLC members; thus removal is deficient | Short, plain jurisdictional averments in a removal notice are sufficient; CMS provided enough detail and can amend if needed | Denied remand, but ordered CMS to file amended notice within 7 days specifying each member's citizenship |
Key Cases Cited
- Lincoln Property Co. v. Roche, 546 U.S. 81 (Defendant may remove when complete diversity exists)
- Carden v. Arkoma, 494 U.S. 185 (LLC citizenship determined by citizenship of all members)
- Ellenburg v. Spartan Motors Chassis, Inc., 519 F.3d 192 (short averments suffice in removal notice to plead jurisdiction)
- Strawn v. AT&T Mobility LLC, 530 F.3d 293 (notice of removal needs only a short, plain statement paralleling a complaint)
- Mulcahey v. Columbia Organic Chems. Co., 29 F.3d 148 (burden of establishing federal jurisdiction on removing party)