Delpidio v. Fiorillo

CourtDistrict Court, D. Rhode Island
DecidedOctober 12, 2023
Docket1:23-cv-00349
StatusUnknown

This text of Delpidio v. Fiorillo (Delpidio v. Fiorillo) is published on Counsel Stack Legal Research, covering District Court, D. Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Delpidio v. Fiorillo, (D.R.I. 2023).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF RHODE ISLAND

LOUIS DELPIDIO, et al., : Plaintiffs, : : v. : C.A. No. 23-349WES : NICHOLAS FIORILLO, et al., : Defendants. :

REPORT AND RECOMMENDATION TO REMAND CASE TO MASSACHUSETTS STATE COURT AND ORDER TO SHOW CAUSE WHY SANCTIONS AND INJUNCTION SHOULD NOT BE ORDERED

Referred to me1 is the emergency motion2 of Plaintiffs Louis Delpidio, suing as Trustee of three “House Trusts” for three properties located in Nantucket and West Yarmouth, Massachusetts (collectively “Mr. Delpidio”) (ECF No. 5), for remand of this case3 that was removed from the Massachusetts Superior Court (Barnstable) by pro se Defendant Nicholas Fiorillo. It is unclear whether the other defendant consented to the removal. Mr. Delpidio asks for sanctions pursuant to 28 U.S.C. § 1447(c) and an injunction based on Mr. Fiorillo’s vexatious

1 This motion was referred for determination pursuant to 28 U.S.C. § 636(b)(1)(A), as is customary in this District for motions to remand. See Blue Cross & Blue Shield of R.I. v. Korsen, 746 F. Supp. 2d 375, 379 (D.R.I. 2010); cf. ML-CFC 2007-6 P.R. Properties, LLC v. BPP Retail Properties, LLC, 951 F.3d 41, 49 n.4 (1st Cir. 2020). Some appellate courts that have addressed this question have held that a motion to remand should be considered dispositive. See, e.g., Flam v. Flam, 788 F.3d 1043, 1046-47 (9th Cir. 2015) (“Each of our sister circuits to consider the question has held that a motion to remand is a dispositive one, and therefore concluded that a remand order is beyond the power of a magistrate judge to issue.”). The question is complicated for this removal because it implicates not just remand of a 28 U.S.C. § 1441 removal (which is not appealable and arguably nondispositive by statute, see § 1447(d)), but also § 1443 (which is subject to a right of appeal). To avoid a potential legal quagmire that might delay the remand, Stefanik v. City of Holyoke, 597 F. Supp. 2d 184, 185 (D. Mass. 2009), I am issuing a report and recommendation.

2 Mr. Fiorillo’s notice of removal was filed on August 29, 2023, and Mr. Delpidio’s emergency motion to remand was filed with leave of Court on October 5, 2023. To the extent that procedural grounds for remand may be deemed waived because the motion was filed more than thirty days after the removal notice was filed, 28 U.S.C. § 1447(c), my recommendation remains the same based on the lack of subject matter jurisdiction. Id.

3 This case has been pending in the Barnstable County Superior Court of the Commonwealth of Massachusetts since June 16, 2023. ECF No. 1-1 at 1, 14. In that court, it is captioned as Louis Delpidio, as Trustee of the Lewis Bay Beach House Trust, the 116 Baxter Road Beach House Trust, and the 63 TN Beach House Trust v. Fiorillo and Ocean Vacations, LLC and is designated variously as 23-cv-0230 and 2372-cv-00230. Id. at 14, 24.

litigation tactics. For the reasons that follow, I agree and recommend that the Court order that this case be remanded forthwith. In addition, because of the egregiousness of Mr. Fiorillo’s conduct in this case and others, pursuant to 28 U.S.C. § 1447(c) and the Court’s inherent power, I further order that Mr. Fiorillo must show cause in writing why his conduct in removing this case and others to this Court should not be sanctioned and why he should not be enjoined from

continuing such conduct. I. Background The underlying state court case was filed in the Massachusetts Superior Court (Barnstable) on June 16, 2023, almost two and a half months before the purported removal. Mr. Fiorillo was served on June 22, 2023. ECF No. 1-1 at 24. On the face of the complaint, the case is based on Massachusetts state law (breach of a contract, fraud and conversion related to the three Massachusetts real estate properties) and is between a Massachusetts trustee,4 an individual (Mr. Fiorillo) who is a resident and presumptively a citizen of Massachusetts and a Massachusetts entity (Ocean Vacations, LLC).5 Id. at 3-8. Nothing in the pleading or the

4 The citizenship of a trust for purposes of diversity jurisdiction can be a complex issue. See DMB Fin. LLC v. Symple Lending LLC, Civil Action No. 21-12065-FDS, 2022 WL 16573978, at *1 (D. Mass. May 3, 2022) (citizenship of trustee and beneficiaries or both may be pertinent to citizenship of trust); U.S. Bank Tr., N.A. for LSF9 Master Participation Tr. v. Dedoming, 308 F. Supp. 3d 579, 580 (D. Mass. 2018) (generally citizenship of trustee is controlling for purposes of diversity analysis). In this instance, each trust’s sole asset is Massachusetts real estate, ECF No. 1-1 at 3-4, and the trustee (Mr. Delpidio) is represented in other pleadings filed by Mr. Fiorillo as a resident of Massachusetts with a business office in Massachusetts. See Raymond C. Green, Inc. Tr. v. Delpidio, 23- cv-365 (D.R.I. Sept. 4, 2023), ECF No. 1-2 at 6 ¶ 3 (“Louis Delpidio is an individual who . . . resides in Massachusetts and has an office address at 275 Tremont St., Boston, MA.”); id., ECF No. 4 at 4 (“Delpidio and Fiorillo are both individuals who reside in Massachusetts.”). Mr. Fiorillo and Mr. Delpidio are alleged to be the sole beneficiaries of the three trusts. ECF No. 1-1 at 4. Mr. Fiorillo’s removal notice provides no contrary information; therefore, he has failed to sustain his burden of showing that Mr. Delpidio as trustee is not a citizen of Massachusetts for purposes of examining diversity of citizenship. This is consistent with Judge Sorokin’s finding that Mr. Fiorillo failed to sustain his burden of showing that the parties in this case are diverse. Delpidio as Tr. of Lewis Bay Beach House Tr. v. Fiorillo, Civil No. 23-11473-LTS, 2023 WL 4373912, at *1 (D. Mass. July 6, 2023), affirmed, C.A. No. 23-1567 (1st Cir. July 18, 2023).

5 Ocean Vacations, LLC, is represented to be a Massachusetts corporation with its principal place of business in Massachusetts. ECF No. 1-1 at 4. Its members are not revealed, although Mr. Fiorillo is represented to be its “lone managing corporate officer.” Id. In another pleading filed by Mr. Fiorillo, Ocean Vacations, LLC, is alleged to have removal notice suggests that there is complete diversity of citizenship. There are no claims arising from the Constitution, laws or treaties of the United States. There are no claims of race discrimination or that Mr. Fiorillo is a government official compelled by state law to violate civil rights. This is Mr. Fiorillo’s second attempt to remove this state court case to federal court. His

first attempt was rejected based on the lack of federal subject matter jurisdiction in Delpidio as Tr. of Lewis Bay Beach House Tr. v. Fiorillo, Civil No. 23-11473-LTS, 2023 WL 4373912, at *1 (D. Mass. July 6, 2023). This determination was affirmed on appeal. See C.A. No. 23-1567 (1st Cir. July 18, 2023). The vexatious nature of Mr. Fiorillo’s conduct in removing cases has been the subject of an injunction and a fee award. Raymond C. Green, Inc. Tr.

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