North Carolina Lawyers Weekly
New Friendship Used Clothing Collection, LLC v. Katz (Lawyers Weekly No. 002-006-17, 7 pp.) (Terrence Boyle, J.) 5:16-cv-00934; E.D.N.C.
Holding: Since defendant is a member of the plaintiff-limited liability company, and since an LLC’s citizenship is that of its members, there is incomplete diversity between the parties.
Since the LLC has a possible claim of breach of fiduciary duty against defendant, and since this claim shares with the other plaintiffs’ claims common questions of law and fact as to whether defendant is attempting to use plaintiffs’ proprietary trade secrets to usurp from the LLC a valuable business opportunity for himself, defendant has not shown that the LLC was fraudulently joined.
The court grants plaintiffs’ motion to remand to state court.
