Removal, LLC Citizenship, and the 30-Day Clock
Plaintiff, a citizen of State A, sues Delta Works LLC in State A state court for breach of contract, seeking $90,000. Delta Works is organized under State B law. Its members are (1) Northstar Corp., incorporated in State C with its principal place of business in State A, and (2) Maria, an individual citizen of State B. Delta Works was served on March 3. It filed an answer in state court on March 20, then on April 17 filed a notice of removal to federal court asserting diversity jurisdiction. Plaintiff moves to remand. Delta Works argues that its State B organization and Maria's State B citizenship create diversity, and that removal was timely because it came within 30 days of its answer.
1. Does the federal court have diversity jurisdiction? Explain the citizenship analysis.
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No. For an LLC, citizenship is that of every member, not the state of organization. Northstar is a citizen of State C by incorporation and State A by principal place of business under 28 U.S.C. § 1332(c)(1). Maria is a citizen of State B. Delta Works is therefore a citizen of States A, B, and C. Plaintiff is a citizen of State A. Because plaintiff and defendant share State A citizenship, complete diversity is absent. The $90,000 amount exceeds $75,000, but that cannot cure the citizenship defect. The court lacks subject-matter jurisdiction, so remand is required.
2. Was the notice of removal timely, and does the state-court answer affect the analysis?
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No. Under 28 U.S.C. § 1446(b), a defendant must file the notice of removal within 30 days after service of the initial pleading. Service was March 3; the deadline was April 2. The April 17 notice was 45 days after service and untimely. Filing an answer does not restart the 30-day clock, and removal statutes are strictly construed. An untimely notice cannot be cured by later events. Because the federal court also lacks diversity jurisdiction, the case must be remanded. Plaintiff may seek costs and fees under § 1447(c) if removal was objectively unreasonable.