civil cover sheet

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civil cover sheet
Case 1:14-cv-01323-ERK-JMA Document 1-1 Filed 02/27/14 Page 1 of 2 PageID #: 6
CIVIL COVER SHEET
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I. (a) PLAINTIFFS
DEFENDANTS
Nemet Motors, LLC d/b/a Nemet Kia
Kia Motors America, Inc.
Queens County, New York
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Cyruli, Shanks, Hart & Zizmor, LLP, 420 Lexington Ave, New York, New
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Hogan Lovells US LLP, 875 Third Ave, New York, New York 10022,
(212) 918-10022
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15 U.S.C. Sec. 1221 et seq.
VI. CAUSE OF ACTION %ULHIGHVFULSWLRQRIFDXVH
Automotive dealer's challenge to a notice of termination issued by an automotive distributor
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VII. REQUESTED IN
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Case 1:14-cv-01323-ERK-JMA Document 1-1 Filed 02/27/14 Page 2 of 2 PageID #: 7
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Kia Motors America, Inc.
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Case 1:14-cv-01323-ERK-JMA Document 1 Filed 02/27/14 Page 1 of 5 PageID #: 1
UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NEW YORK
--------------------------------------------------------------X
NEMET MOTORS, LLC d/b/a NEMET KIA,
Plaintiff,
Case No.:
- against -
NOTICE OF REMOVAL
KIA MOTORS AMERICA, INC.,
Defendant.
--------------------------------------------------------------X
PLEASE TAKE NOTICE that Defendant Kia Motors America, Inc. (“KMA”), by and
through its undersigned counsel, pursuant to 28 U.S.C. §§ 1441 and 1446, hereby removes this
action from the Supreme Court of the State of New York, County of Queens, to the United States
District Court for the Eastern District of New York:
1.
On or about January 29, 2014, Plaintiff Nemet Motors, LLC d/b/a Nemet Kia
(“Nemet”) commenced this action by filing a Summons and Complaint in the above-captioned
matter in the Supreme Court of the State of New York, County of Queens, under Docket Number
700634/14 (the “State Court Action”).
2.
The Summons and Complaint were forwarded by email to outside counsel for
KMA, the sole Defendant in the State Court Action, on January 30, 2014.
3.
Pursuant to 28 U.S.C. § 1446(b), this Notice of Removal is timely since it is filed
within thirty (30) days of Defendant’s receipt of the Summons and Complaint.
4.
In the Complaint, Nemet alleges, among other things, that KMA acted unlawfully
by issuing a notice to terminate Nemet’s Kia Dealer Sales and Service Agreement (the “Dealer
1
Case 1:14-cv-01323-ERK-JMA Document 1 Filed 02/27/14 Page 2 of 5 PageID #: 2
Agreement”). The Dealer Agreement authorizes Nemet to act as a Kia sales and service dealer
in Jamaica, New York. Plaintiff further alleges that, in connection with the notice of
termination, KMA has imposed “unreasonable” sales and customer satisfaction requirements that
have not been uniformly enforced against other Kia dealers.
5.
Count II of the Complaint alleges, more specifically, that KMA’s actions violated
15 U.S.C. § 1221 et seq., commonly known as the Federal Automobile Dealer’s Day in Court
Act (the “Federal Dealer Act”).
6.
In view of Nemet’s Federal Dealer Act claim, this Court has jurisdiction pursuant
to 28 U.S.C. § 1331 because the Complaint asserts a claim arising under the laws of the United
States. This Court also has jurisdiction over the state law claims asserted in the Complaint under
28 U.S.C. § 1367(a) and principles of supplemental and/or pendent jurisdiction. These state law
claims are related to Nemet’s Federal Dealer Act claim such that they form part of the same case
or controversy: both the federal and state law claims relate to KMA’s alleged imposition and
enforcement of “unreasonable” sales and customer service requirements and its intention to
terminate the Dealer Agreement between KMA and Nemet.
7.
In addition, this Court has jurisdiction pursuant to 28 U.S.C. § 1332(a)(1) because
the matter in controversy exceeds the sum of $75,000, exclusive of interest and costs, and the
action is between citizens of different states.
8.
According to the Complaint herein and upon information and belief, Nemet is,
and was as of the commencement of the State Court Action, a limited liability company
organized and existing under the laws of the State of New York. Nemet has two members and
owners, Scott Perlstein, Thomas Nemet’s son-in-law, and Jerome LeBowitz, the sole executor of
2
Case 1:14-cv-01323-ERK-JMA Document 1 Filed 02/27/14 Page 3 of 5 PageID #: 3
the estate of Thomas Nemet. Each of Nemet’s members and owners resides in, is domiciled in,
and is a citizen of New York.
9.
Defendant KMA is, and was as of the commencement of the State Court Action, a
California corporation with its principal place of business in Irvine, California. KMA is the only
defendant in the State Court Action.
10.
The Complaint prays for (a) money damages, (b) an order enjoining KMA from
terminating the Dealer Agreement between Nemet and KMA, (c) costs and attorney’s fees, and
(d) punitive damages.
11.
The central allegation in the Complaint is that KMA wrongfully issued a notice of
termination of the Dealer Agreement. Nemet seeks permanent injunctive relief restraining KMA
from terminating the Dealer Agreement. If Nemet’s demand for injunctive relief is denied and
KMA’s termination of the Dealer Agreement is upheld, Nemet will no longer have the right to
operate as an authorized Kia dealership or to propose the sale of its Kia assets. According to the
Complaint, Nemet’s owners have invested substantial sums of money into the dealership.
12.
The value to Nemet of an injunction preventing the termination of the Dealer
Agreement is, in and of itself, substantially in excess of $75,000.
13.
Defendant KMA received the Summons and Complaint by email. Pursuant to 28
U.S.C. § 1446(a), copies of all process, pleadings, and other papers in this case are attached
hereto as “Exhibit 1.”
14.
By filing this Notice of Removal, KMA does not waive any defense which may
be available to it.
3
Case 1:14-cv-01323-ERK-JMA Document 1 Filed 02/27/14 Page 4 of 5 PageID #: 4
15.
A copy of this Notice will be filed with the Clerk of the Supreme Court of the
State of New York, County of Queens, as required by 28 U.S.C. § 1446(d).
16.
Defendant KMA will serve this Notice of Removal on the attorney for Plaintiff:
Russell Shanks, Esq., Cyruli, Shanks, Hart & Zizmor, LLP, 420 Lexington Avenue, New York,
New York, 10170, as required by 28 U.S.C. § 1446(d).
WHEREFORE, Defendant KMA respectfully requests removal of this action from the
Supreme Court of the State of New York, County of Queens, to the United States District Court
for the Eastern District of New York.
Dated: February 26, 2014
Respectfully submitted,
HOGAN LOVELLS US LLP
By_/s/John J. Sullivan____
John J. Sullivan
875 Third Avenue
New York, New York 10022
(212) 918-3000
Attorney for Defendant Kia Motors
America, Inc.
4
Case 1:14-cv-01323-ERK-JMA Document 1 Filed 02/27/14 Page 5 of 5 PageID #: 5
CERTIFICATE OF SERVICE
I hereby certify that on February 26, 2014, I served a true copy of the foregoing document by
Federal Express and electronic mail, upon the following:
Russell Shanks, Esq.
Cyruli, Shanks, Hart & Zizmor, LLP
420 Lexington Avenue
New York, New York 10170
Tel: (212) 661-6800
rshanks@cshzlaw.com
/s/ John J. Sullivan__________
John J. Sullivan
Attorney for Defendant Kia Motors America, Inc.
5
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EXHIBIT 1
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