ANN M. DONNELLY, District Judge.
The New York plaintiff, Karen Frank-Shaevich, alleges that she was injured after she tripped on frayed carpeting inside a movie theater. She brought suit in Queens County on May 26, 2015, against Majestic GERP LLC and Queens GERP LLC ("the owner defendants") and against their lessee United Artists Theatre Circuit, Inc. ("United Artists").
There does not appear to be any dispute that if the owner defendants, as citizens of New York, are proper parties to the action, their presence destroys diversity of citizenship, and as a result deprives the district court of subject matter jurisdiction under 28 U.S.C. § 1332 (which requires complete diversity between all plaintiffs and all defendants) and thus defeats the defendants' petition for removal. 28 U.S.C. § 1441. The defendants, however, claim that the owner defendants are fraudulently joined and thus their citizenship should not be considered in determining jurisdiction.
It is, of course, true that a plaintiff may not defeat the defendants' right of removal and a federal court's diversity jurisdiction "by merely joining as defendant parties with no real connection with the controversy." Pampillonia v. RJR Nabisco, Inc., 138 F.3d 459, 460-61 (2d Cir. 1998). However, defendants asserting "fraudulent joinder" face a "heavy burden." Id. at 461. In order to show that non-diverse defendants are fraudulently joined, the defendants must show by clear and convincing evidence that there is "no possibility, based on the pleadings, that a plaintiff can state a cause of action against the non-diverse defendant[s] in state court."
The defendants invoke the out-of-possession doctrine to support their claim that the plaintiff cannot recover against the non-diverse owner defendants. Under New York law, an out-of-possession property owner is not liable for injuries that occur on the property unless the owner retained control over the property or is obligated by contract to perform repairs and maintenace. Grippo v. City of New York, 45 A.D.3d 639, 640 (2d Dep't 2007); see also Felipe v. Target Corp., 572 F.Supp.2d 455, 461 (S.D.N.Y. 2008) ("It is well-established in New York case law that `[a]n out-of-possession property owner is not liable for injuries that occur on the property unless the owner has retained control over the premises or is contractually obligated to perform maintenance and repairs.'") (citing Grippo, 45 A.D.3d at 640). To prevail on this theory, the owners must have "completely parted with control of the building." Williams v. Matrix Fin. Servs. Corp., 158 F. App'x 301, 302 (2d Cir. 2005) (citing Bonifacio v. 910-930 Southern Blvd. LLC, 295 A.D.2d 86, 90 (1st Dep't 2002)). Retention of the right of reentry may preclude a finding that landlords have "completely parted with control of the building." See Bonifacio, 295 A.D.2d at 90 ("retention of a right of re-entry is merely one way an owner may maintain a degree of control.").
Resolving all ambiguities in the plaintiff's favor, the defendants have not met their heavy burden of establishing, based on the pleadings, that there is no possibility that the plaintiff could recover against the owner defendants. According to the plaintiff, the theater's damaged carpeting caused her to trip and fall, and the owner defendants were responsible for repairing the theater's flooring. The plaintiff alleges further that the owner defendants retained some amount of control (either in fact or by contract) over the property, an allegation that the commercial lease does not foreclose. The commercial lease provides that it is the tenant's responsibility to "maintain the interior of the Premises," and lists specific items governed by that provision;
The defendants' motion to dismiss the owner defendants is