Demarcus Lilly v. Summit Hotel Properties, Inc. and Nola Lodging, LLC

Summary

The United States District Court for the Eastern District of Louisiana denied Plaintiff Demarcus Lilly’s motion to remand a personal injury action to state court. The court held that Nola Lodging, LLC was improperly joined because it was inactive, lacked an agent for service of process, and had been converted and renamed before the underlying incident. Accordingly, Summit Hotel Properties, Inc. did not need Nola Lodging’s consent to removal, and the court exercised diversity jurisdiction.

Holdings

1. Nola Lodging was not properly served because it was inactive and had no agent for service of process; additionally, it was improperly named and joined because it had converted to a Delaware LLC under a different name before the underlying incident.
2. The court was not required to consider Nola Lodging's citizenship or the citizenship of its members because Nola Lodging was improperly joined.
3. The court had diversity jurisdiction because Plaintiff and Summit Hotel Properties, Inc. were diverse and the amount in controversy exceeded $75,000.

Questions Presented

1. Whether Nola Lodging was properly joined and served such that its consent to removal was required.
2. Whether Nola Lodging was improperly joined and therefore could be disregarded for purposes of the rule requiring consent to removal and the complete-diversity analysis.
3. Whether the court had diversity jurisdiction based on complete diversity between Plaintiff and Summit Hotel Properties, Inc. and an amount in controversy exceeding $75,000.

Disposition

remanded