Monday, June 24, 2019

Challenging an Individual’s Domicile



Challenging an Individual’s Domicile

      A recent decision from the Federal District Court for the Eastern District of Michigan reviewed the factors and the burdens of proof applied in determining what is the domicile of an individual for purposes of diversity jurisdiction.  In this instance, it was determined that the defendant is domiciled in Michigan (and not in Florida as the plaintiff asserted), so diversity did not exist and the complaint was dismissed. Art Van Furniture LLC v. Zimmer, Civil Act. No. 19-CV-10880, 2019 WL 2433245 (Ed. Mich. June 11, 2019).
      Art Van Furniture filed suit against Zimmer, who reading between the lines of the opinion appears to have been a former employee thereof, as well as several other furniture companies for whom Zimmer is now working. In its complaint, Art Van identified itself as being a citizen of Michigan, the other defendant companies as citizens of Wisconsin, and Zimmer as a citizen of Florida and New York. Zimmer sought to dismiss the complaint under Federal Rule of Civil Procedure 12(b)(6) on the basis that in fact he is a citizen of Michigan and diversity jurisdiction does not exist. Shortly before this action was filed, Zimmer began working for defendant Kingswere Furniture, LLC in Tampa, Florida, where he resided in an apartment. On that basis, it was asserted that he was a citizen of Florida. In the alternative, it was pointed out that he owned property in New York and had there as well filed tax returns and registered a car; on that basis, it was asserted that he could be a citizen of New York. In opposition, Zimmer filed a series of declarations explaining that, while he might be working in Florida, his family remains in Michigan and that it is to Michigan that he intends to ultimately return.
      On the facts, it was held that the plaintiffs had not met their burden of demonstrating that Zimmer is domiciled in Florida (as contrasted with merely resident there from time to time). The court went on to observe that:
But residency, minus intent to remain permanently, does not equal domicile. Nor do the facts that Zimmer owns property in, or that he is paid taxes in, or that he has a driver’s license from another state shed any light on the critical question of where he permanently resides and intends to remain.
In contrast, Zimmer avers that he is currently registered to vote in Michigan, that he lives in Florida only during the week and only for work purposes, that Michigan is his and his family’s home and the place of his primary residence, and that he intends to remain in Michigan indefinitely.
      On that basis, it was held that Zimmer is a citizen of Michigan. There being no diversity jurisdiction, the suit was dismissed.

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