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Jemal's Boulevard LLC v. VJ & O'Neal Enterprises LLC

Diversity Jurisdiction Stands But Rule 11 Sanctions Denied in Mall's Suit Over Store Rents

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DECISION AND ORDER I. Introduction This is a rental dispute commenced here under this Court’s diversity jurisdiction, but Defendant presently challenges assertion of that jurisdiction (Docket No. 5, Def. Motion to Dismiss). Under 28 U.S.C. §1332(a), this Court has original jurisdiction over an action where (a) the amount in controversy is $75,000 or more and (b) the action is between “citizens of different States,” 28 U.S.C. §1332(a)(1). Plaintiff here alleges it is a limited liability company (“LLC”) under the laws of New York, Defendant is an LLC under the laws of Wisconsin, and that the amount in controversy is “in excess of $125,00.00″ in asserting diversity jurisdiction (Docket No. 1, Compl.

1, 3, 9, 13-14, WHEREFORE Cl.). Now before this Court is Defendant’s Motion to Dismiss (Docket No. 5) pursuant to Federal Rule of Civil Procedure 12(b)(1). Defendant argues that Plaintiff misrepresented its damages and thus failed to meet the diversity amount in controversy requirement for diversity jurisdiction (id.). Given these alleged misrepresentations of the amount in controversy, Defendant also moves for sanctions under Rule 11 (id.). On March 1, 2022, this Court ordered the parties to disclose the names and citizenships of the LLC members (Docket No. 10). Plaintiff (Docket No. 12) and Defendant (Docket No. 11) filed affidavits naming the members of their respective LLCs and their citizenships. For the reasons stated below, Defendant’s Motion to Dismiss and its Motion for Rule 11 sanctions (Docket No. 5) are denied. II. Background A. Facts and the Complaint Allegations Plaintiff LLC has as its sole member Douglas Jemal of Buffalo, New York (Docket No. 12, Jemal Aff.

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