Northfield Insurance Company v. Shalom et al
| Northfield Insurance Company |
| Avi Shalom, B.H. Contractor, Inc., Balila Realty, LLC and Gabriel Pacheco |
| 1:2023cv02830 |
| April 17, 2023 |
| US District Court for the Eastern District of New York |
| Sanket J Bulsara |
| LaShann DeArcy Hall |
| Insurance |
| 28 U.S.C. § 1332 Diversity-Declaratory Judgement |
| None |
Docket Report
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| Filing 9 ANSWER to #1 Complaint,, of Plaintiff Northfield Insurance Company by Gabriel Pacheco. (Attachments: #1 Exhibit Answer of BH in Underlying Action, #2 Exhibit BH Discovery Responses in Underlying Action, #3 Exhibit BH First Summary Judgment Motion, #4 Exhibit Opposition to BH First Summary Judgment Motion, #5 Exhibit BH Permit Application, License and Insurance Coverage, #6 Exhibit Affidavit of Avi Shalom, #7 Exhibit Order denying BH First Summary Judgment Motion, #8 Exhibit BH Second Summary Judgment Motion, #9 Exhibit Order denying BH Second Summary Judgment Motion, #10 Exhibit BH Third Summary Judgment Motion, #11 Exhibit Testimony of BH Manager David Shalom, #12 Exhibit Testimony of T. Matsui, #13 Exhibit Building permits Issued to BH through 2021, #14 Exhibit Testimony of Craig Bolender) (Carboy, Andrew) |
ORDER TO SHOW CAUSE: Plaintiff is ordered to show cause by 6/20/2023 why this action should not be dismissed for failure to comply with Court orders and for lack of jurisdiction. "A court has the inherent power to supervise and control its own proceedings and to sanction counsel or a litigant...for disobeying the court's orders[.]" Mickle v. Morin, 297 F.3d 114, 125 (2d Cir. 2002); Fed. R. Civ. P. 16(f)(1)(C) (permitting sanctions where a party "fails to obey a scheduling or other pretrial order"). Federal Rule of Civil Procedure 7.1 requires parties in a diversity case to file a disclosure statement identifying the citizenship of every individual associated with a party. Fed. R. Civ. P. 7.1(a)(2) ("In an action in which jurisdiction is based on diversity under 28 U.S.C. 1332(a), a party or intervenor must, unless the court orders otherwise, file a disclosure statement. The statement must name--and identify the citizenship of--every individual or entity whose citizenship is attributed to that party or intervenor: when the action is filed in or removed to federal court[.]"). The disclosure statement must be filed with the party's "first appearance, pleading, petition, motion, response, or other request addressed to the court." Fed. R. Civ. P. 7.1(b)(1). This requirement is "designed to facilitate an early and accurate determination of jurisdiction." Fed. R. Civ. P. 7.1(a)(2) advisory committee's note to 2022 amendment. On April 18, 2023, the Court reminded Plaintiff to file the required Rule 7.1 disclosure statement, because in this case, the alleged subject matter jurisdiction is based upon diversity of citizenship. (Order dated Apr. 18, 2023). Plaintiff was warned that failure to file "may lead to sanctions, including dismissal of the action." (Id.). On May 11, 2023, the Court noted that "Plaintiff failed to file its Rule 7.1 disclosure statement by 4/25/2023 as reflected in the Court's order dated 4/18/2023." (Order dated May 11, 2023). Counsel was "directed to review the newly amended Rule 7.1, and file a compliant statement by 5/18/2023." (Id.). Though Plaintiff filed a disclosure statement on May 11, 2023, the statement fails to comply with Rule 7.1 despite two Court orders. Specifically, it only includes information about corporate relationships, and nothing about diversity of citizenship, which is what the newly amended Rule requires where the alleged subject matter jurisdiction is based upon diversity of citizenship. In addition, Plaintiff shall show cause why this action should not be dismissed for lack of jurisdiction. "The party seeking to invoke jurisdiction under 28 U.S.C. 1332 bears the burden of demonstrating that the grounds for diversity exist and that diversity is complete." Advani Enters., Inc. v. Underwriters at Lloyds, 140 F.3d 157, 160 (2d Cir. 1998). Section 1332(a) requires complete diversity among the plaintiffs and defendants for a federal court to exercise diversity jurisdiction. Herrick Co. v. SCS Comm'ns, Inc., 251 F.3d 315, 322 (2d Cir. 2001) ("[D]iversity jurisdiction is available only when all adverse parties to a litigation are completely diverse in their citizenships."). For diversity purposes, "a limited liability company takes the citizenship of each of its members." Bayerische Landesbank, N.Y. Branch v. Aladdin Cap. Mgmt. LLC, 692 F.3d 42, 49 (2d Cir. 2012). Plaintiff alleges diversity exists because it is a Connecticut corporation with a principal place of business in Connecticut, Defendants B.H. Contractor, Inc. and Balila Realty, LLC are New York corporations with a principal place of business in New York, and Defendants Avi Shalom and Gabriel Pacheco reside in New York. (Compl., Dkt. No. #1 paras. 6-10). This is not sufficient to infer that the Court has subject matter jurisdiction over this case. While the Complaint alleges Balila Realty, LLC is a corporation, the "LLC" abbreviation in the name suggests otherwise. The Complaint fails to allege Balila Realty's members or their citizenships for the purposes of diversity. In addition, by only alleging their residence, the Complaint does not allege the citizenship or domicile of Defendants Shalom or Pacheco. By 6/20/2023, Plaintiff shall show cause why this action should not be dismissed. Failure to respond to this order will result in a recommendation that the action be dismissed. So Ordered by Magistrate Judge Sanket J. Bulsara on 6/6/2023. (IS)
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| Filing 8 SUMMONS Returned Executed by Northfield Insurance Company. Balila Realty, LLC served on 5/26/2023, answer due 6/16/2023. (Buckley, Michael) |
| Filing 7 Corporate Disclosure Statement by Northfield Insurance Company identifying Corporate Parent The Travelers Indemnity Company, Corporate Parent Northland Insurance Company,, Corporate Parent Travelers Property Casualty Corp., Corporate Parent Travelers Insurance Group Holdings, Inc., Corporate Parent The Travelers Companies, Inc. for Northfield Insurance Company. (Buckley, Michael) |
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ORDER: Plaintiff failed to file its Rule 7.1 disclosure statement by 4/25/2023 as reflected in the Court's order dated 4/18/2023. The newly amended Rule 7.1, which became effective on December 1, 2022, provides: "In an action in which jurisdiction is based on diversity under 28 U.S.C. 1332(a), a party or intervenor must...file a disclosure statement." Fed. R. Civ. P. 7.1(a)(2). "The statement must name--and identify the citizenship of--every individual or entity whose citizenship is attributed to that party or intervenor: when the action is filed in or removed to federal court[.]" Id. Counsel is directed to review the newly amended Rule 7.1, and file a compliant statement by 5/18/2023. So Ordered by Magistrate Judge Sanket J. Bulsara on 5/11/2023. (IS)
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ORDER: Plaintiff is reminded to file the required Rule 7.1 disclosure statement, because in this case, the alleged subject matter jurisdiction is based upon diversity of citizenship. Failure to file the required disclosure statement by 4/25/2023 may lead to sanctions, including dismissal of the action. So Ordered by Magistrate Judge Sanket J. Bulsara on 4/18/2023. (IS)
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| Filing 6 Summons Issued as to B.H. Contractor, Inc., Balila Realty, LLC, Gabriel Pacheco, Avi Shalom. (Attachments: #1 attachment). (ML) |
| Filing 5 Proposed Summons. Re #1 Complaint,, by Northfield Insurance Company (Attachments: #1 Appendix Rider - Proposed Defendants) (Buckley, Michael) |
| Filing 4 Proposed Summons. Re #1 Complaint,, by Northfield Insurance Company (Attachments: #1 Appendix Rider - Proposed Defendants) (Buckley, Michael) |
| Filing 3 This attorney case opening filing has been checked for quality control. See the attachment for corrections that were made, if any. (SR) |
| Filing 2 In accordance with Rule 73 of the Federal Rules of Civil Procedure and Local Rule 73.1, the parties are notified that if all parties consent a United States magistrate judge of this court is available to conduct all proceedings in this civil action including a (jury or nonjury) trial and to order the entry of a final judgment. Attached to the Notice is a blank copy of the consent form that should be filled out, signed and filed electronically only if all parties wish to consent. The form may also be accessed at the following link: #http://www.uscourts.gov/uscourts/FormsAndFees/Forms/AO085.pdf. You may withhold your consent without adverse substantive consequences. Do NOT return or file the consent unless all parties have signed the consent. (SR) |
| Filing 1 COMPLAINT against B.H. Contractor, Inc., Balila Realty, LLC, Gabriel Pacheco, Avi Shalom filing fee $ 402, receipt number ANYEDC-16604284 Was the Disclosure Statement on Civil Cover Sheet completed -YES,, filed by Northfield Insurance Company. (Attachments: #1 Exhibit A - Northfield Policy, #2 Exhibit B - Underlying Complaint, #3 Exhibit C - Preclusion Order, #4 Civil Cover Sheet Civil Cover Sheet, #5 Proposed Summons Avi Shalom, #6 Proposed Summons B.H. Contractor, Inc., #7 Proposed Summons Balila Realty, LLC, #8 Proposed Summons Gabriel Pacheco) (Buckley, Michael) |
| Case Assigned to Judge LaShann DeArcy Hall and Magistrate Judge Sanket J. Bulsara. Please download and review the Individual Practices of the assigned Judges, located on our #website. Attorneys are responsible for providing courtesy copies to judges where their Individual Practices require such. (SR) |
| Your proposed summons was not issued for one of the following reasons: The Clerk of Court's name needs to be updated. Please correct and resubmit using Proposed Summons/Civil Cover Sheet. (ML) |
| Your proposed summons was not issued for one of the following reasons: If multiple defendants, there must me a rider attached to the summons with the name and addresses of all defendants included., Please correct and resubmit using Proposed Summons/Civil Cover Sheet. (SR) |
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