TEXT ORDER granting Plaintiff Belle Harbor Property Owners' Association's Motion to Remand. (DE 6 .) This matter is before the Court on Plaintiff's Motion to Remand (DE 6), which the Court previously held in abeyance pending limited jurisdictional discovery concerning the citizenship of Southeastern Landscape & Maintenance, LLC f/k/a U.S. Lawns of South Myrtle Beach, LLC ("Southeastern"). (DE 16.)
Defendants Lennar Carolinas, LLC ("Lennar") removed this action from the Horry County Court of Common Pleas on March 26, 2026, invoking diversity jurisdiction under 28 U.S.C. § 1332. (DE 1.) At the time of removal, the operative complaint named Belle Harbor Property Owners' Association as Plaintiff and Lennar as Defendant. (DE 1.) After removal, Plaintiff filed an Amended Complaint adding Southeastern as a defendant. (DE 5.) Plaintiff then moved to remand, arguing that Southeastern's joinder defeats complete diversity. (DE 6.)
Because Southeastern is a limited liability company, its citizenship is determined by the citizenship of each of its members. The Court therefore directed the parties to conduct limited jurisdictional discovery concerning Southeastern's membership and citizenship. (DE 16.) The parties have now filed a Joint Jurisdictional Status Report. (DE 18.) The report and supporting materials show that Curtis E. Wright was the sole owner/member of Southeastern until its dissolution and that Wright was, at the relevant time, a citizen and resident of South Carolina. (DE 17; DE 18.) Accordingly, Southeastern is a citizen of South Carolina for purposes of diversity jurisdiction.
When a plaintiff seeks to join a nondiverse defendant after removal, 28 U.S.C. § 1447(e) provides that the Court may either deny joinder or permit joinder and remand the action to state court. Mayes v. Rapoport, 198 F.3d 457, 46163 (4th Cir. 1999). In exercising its discretion under § 1447(e), the Court considers "the extent to which the purpose of the amendment is to defeat federal jurisdiction, whether the plaintiff has been dilatory in asking for amendment, whether the plaintiff will be significantly injured if amendment is not allowed, and any other factors bearing on the equities." Id. at 462.
The Court has considered the relevant Mayes factors and finds joinder appropriate. Plaintiff added Southeastern shortly after removal and early in the litigation. (DE 1; DE 5.) The Amended Complaint asserts claims arising from the same alleged construction defects and related work at issue in the original action. (DE 5.) No party opposes joinder or remand, and the record does not show that Plaintiff acted in bad faith or solely to defeat federal jurisdiction. (DE 15; DE 18.) Because Southeastern is a South Carolina citizen, its joinder destroys complete diversity.
Accordingly, the Court permits joinder of Southeastern under 28 U.S.C. § 1447(e), grants Plaintiff's Motion to Remand, and remands this action to the Horry County Court of Common Pleas. (DE 6 .) Lennar's Motion to Dismiss or, Alternatively, Motion to Stay and Compel, and Plaintiff's Motion for Extension of Time are denied as moot. (DE 4 ; DE 11 .) The Clerk is directed to mail a certified copy of this Order to the Clerk of Court for Horry County.
IT IS SO ORDERED.
Signed by the Honorable Joseph Dawson, III on 6/29/2026. (lgib, )