SMI Logistics, LLC v. Peric et al

Filing 13

ORDER: On May 20, 2022, Plaintiff filed a Complaint to void a contract, invoking this Court's jurisdiction on the basis of diversity of citizenship under 28 U.S.C. § 1332. However, Plaintiff's Complaint failed to allege complete div ersity. Plaintiff has since moved to amend its Complaint to exclude all non-diverse defendants. See Mot. to Amend, ECF No. 10 . For the reasons stated in the attached Order, the Court GRANTS Plaintiff leave to amend the complaintpursuant to Fed. R. Civ. P. 15(a)(2).So Ordered by Judge William F. Kuntz, II on 7/28/2022. (Yu, Stephanie)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NEW YORI(

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SMI LOGISTICS, LLC,
Plaintiff,

ORDER
22-CV-2902 (WFK) (TAM)

v.
MUJO PERIC et al.,
Defendants.

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WILLIAM F. KUNTZ, II, United States District Judge:
On May 20, 2022, Plaintiff filed a Complaint to void a contract, invoking this Court's
jurisdiction on the basis of diversity of citizenship under 28 U.S.C. § 1332. However, Plaintiffs
Complaint failed to allege complete diversity. Plaintiff has since moved to amend its Complaint
to exclude all non-diverse defendants. See Mot. to Amend, ECF No. 10. For the following
reasons, the Court GRANTS Plaintiffs motion to amend the complaint.

Background
Plaintiffs Complaint names Mujo and Nedeljka Perie, residents of Pennsylvania and
Florida, Helms Brothers Auto, Inc. ("Helms Bros."), a New York Corporation, and Richard
Grein, an employee of Helms Bros. in New York. See Comp!., ECF No. 1. The Complaint
therefore alleges both Plaintiff and Defendant Helms Bros. are citizens of New York and
Defendant Richard Grein is an employee of Helms Bros. in New York, although his residence is
not listed in the Complaint.
On June 17, 2022, Magistrate Judge Taryn A. Merkl issued an Order to Show Cause why
she should not recommend dismissal for lack of subject-matter jurisdiction given the lack of
complete diversity. See June 17, 2022 Minute Entry.

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On June 27, 2022, Plaintiff filed a motion to amend the complaint to remove Defendants
Richard Grein and Helms Bros pursuant to Federal Rule of Civil Procedure ("FRCP") 15. Mot.
to Amend.
Discussion
Rule 15 permits a party to amend a pleading with leave of court, which should be "freely
give[n] ... when justice so requires." Fed. R. Civ. P. 15(a)(2). Leave to amend "should
generally be denied in instances of futility, undue delay, bad faith or dilatory motive, repeated
failure to cure deficiencies by amendments previously allowed, or undue prejudice to the nonmoving party[.]" Chung v. Igloo Prod. Corp., No. 20-CV-4926 (MKB), 2022 WL 2657350, at
*21 (E.D.N.Y. July 8, 2022) (Brodie, C.J.) (citing United States ex rel. Ladas v. Exelis, Inc., 824
F.3d 16, 28 (2d Cir. 2016)); see also Kainz v. Bernstein, 841 F. App'x 249,253 (2d Cir. 2020)
(noting leave to amend should be freely given).
No such conditions are present in this case. Defendants Grein and Helms Bros. were not
parties to the contract giving rise to this action and do not otherwise meet the requirements of a
"required party" pursuant to Rule 19 of the Federal Rules of Civil Procedure. Indeed, neither
Grein nor Helms Bros. was served with the Complaint, and neither has appeared in this action.
The remaining Defendants have not opposed Plaintiffs motion to amend. There has thus been
no prejudice either to the Defendants to be removed or to the remaining Defendants in this case.
Conclusion
For the foregoing reasons, the Court GRANTS Plaintiff leave to amend the complaint
pursuant to Fed. R. Civ. P. 15(a)(2).

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SO ORDERED.
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s/WFK

-

~wfilIAM~TZ, II
UNITEDSTATES DISTRICT JUDGE
Dated: July 28, 2022
Brooklyn, New York

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