TAMARAH CAUDILL v. LEMBERG GROUP INC., and KIM KONSTANTIN

District Court, D. New Mexico·Decided April 16, 2026·No. 1:24-cv-00939·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF NEW MEXICO

TAMARAH CAUDILL,

Plaintiff,

v. No. 24-cv-939-WJ-KK

LEMBERG GROUP INC., and KIM KONSTANTIN,

Defendants.

MEMORANDUM OPINION AND ORDER DENYING PLAINTIFF’S MOTION FOR REMAND AND GRANTING DEFENDANTS’ MOTION TO CONSOLIDATE

THIS MATTER comes before the Court upon Plaintiff Tamarah Caudill’s Motion for Remand (Doc. 23) (the Motion) and Defendants’ Motion to Consolidate this case with related case number 1:25-cv-00806-GJF-SCY. (Doc. 62). The Court first resolves the Motion for Remand before turning to the Motion to Consolidate. MOTION FOR REMAND (DOC. 23) Defendants Lemberg Group Inc. and Kim Konstantin remove this action initially filed in New Mexico state court to federal court based on diversity of citizenship, 28 U.S.C. §§ 1332, 1441. Ms. Caudill moves to remand to state court, asserting lack of diversity because, she contends, at the time of removal she was a Kansas citizen, as was her husband William Sloper, a defendant named in the complaint. Since the filing of the complaint, however, all claims against Mr. Sloper have been voluntarily dismissed, and he is no longer a party to this action.1 Doc. 45.

1 Former defendant CWX Transportation LLC was also voluntarily dismissed from the action. Doc. 45. Only Lemberg Group and Kim Konstantin remain defendants. Upon thorough consideration of the record, the Court concludes the Motion is not well- taken. First, the evidence overwhelmingly supports Ms. Caudill was domiciled in Michigan and, therefore, complete diversity was present at the time of removal. Second, even if Ms. Caudill were domiciled in Kansas, Mr. Sloper’s subsequent voluntary and final dismissal from the case cures

any defect in complete diversity. On March 19, 2026, the Court heard the parties’ submissions concerning Ms. Caudill’s citizenship. Doc. 82. Ms. Caudill testified at the hearing. As stated on the record at the hearing and articulated more fully below, the motion to remand to state court is DENIED. I. Factual and Procedural Background On November 26, 2023, Ms. Caudill rode as a passenger in a semi-truck driven by Mr. Sloper on I-40 in Bernalillo County, New Mexico, when that truck collided with a tractor-trailer driven by Kim Konstantin, who was allegedly driving significantly slower than the speed limit. Mr. Konstantin is a Nevada citizen and employee of Lemberg Group, Inc., an Illinois corporation. Following the accident, Ms. Caudill suffered serious injuries requiring medical care. Ms.

Caudill received treatment from a hospital and a skilled nursing facility in New Mexico. Doc. 23 ¶¶ 7–8. After being discharged from the nursing facility in or around late January 2024, id. ¶ 8, Ms. Caudill traveled to Kansas, where Mr. Sloper was recuperating from his injuries. Requiring continued medical attention and living assistance, Ms. Caudill ultimately returned to a house she owns in Michigan,2 where family members lived and could help care for her. Id. ¶¶ 9–10. On April 26, 2024, Ms. Caudill filed suit in the First Judicial District Court, County of Santa Fe, New Mexico, alleging negligence by Mr. Sloper, CWX, Kim Konstantin, and Lemberg Group. The complaint alleges Ms. Caudill is “a resident of / domiciled” in Kansas. Doc. 1-1 ¶ 1.

2 Ms. Caudill describes the Michigan house as owned by both her and Mr. Sloper, though only Ms. Caudill’s name is on the deed. Doc. 23 ¶¶ 10–11. Some initial discovery disclosures, however, showed that Ms. Caudill was born and lived in Michigan and received and continued to receive medical care there. Doc. 1 ¶ 18; Doc. 1-3 at 2. When defense counsel deposed Ms. Caudill in May 2025, it became clear she was staying at her sister’s home in Jackson, Michigan, following a roof collapse at her home in Elmira, Michigan.

Preliminary discovery also revealed a copy of Ms. Caudill’s driver’s license identifying the Elmira address and medical records and bills tied to that address. Docs. 1-5; 1-7; 1-8; 1-9; 1-10. Other records produced by Ms. Caudill suggested that she received health insurance from the State of Michigan around the time she filed this lawsuit. Doc. 1 ¶ 19; Docs. 1-10, 1-11. Upon learning of Ms. Caudill’s connections to Michigan, Defendants believed they had a good faith basis to assert complete diversity of citizenship among the parties, and on September 20, 2024, filed a Notice of Removal in this Court pursuant to 28 U.S.C. § 1446. Doc. 1 ¶ 20. Ms. Caudill does not object to the timeliness or any other procedural aspect of removal. Ms. Caudill’s sole challenge is to diversity of citizenship, as required for federal jurisdiction under 28 U.S.C. § 1332. Mot. at 1, 3 ¶ 21. Ms. Caudill asserts she was in fact a citizen of Kansas at the time the

lawsuit was filed — same as Mr. Sloper — precluding complete diversity. Mr. Sloper was dismissed from the action on May 21, 2025, pursuant to a joint stipulated Motion to Dismiss to which all parties consented. Doc. 45. There is no dispute that Mr. Sloper’s dismissal rendered all parties to the action diverse. That said, given that for diversity purposes, domicile is fixed at the time of filing of a lawsuit, Ms. Caudill contends that her alleged Kansas citizenship at the outset created a jurisdictional defect that persists throughout the case and cannot be cured by the subsequent dismissal of the party defeating diversity. As explained below, the Court concludes that this proposition is inconsistent with Supreme Court precedent. In any event, even if it were correct, there would be no issue because complete diversity existed at the time of removal. II. Law Regarding Removal “[A]ny civil action brought in a State court of which the district courts of the United States have original jurisdiction, may be removed by the defendant or the defendants, to the district court

of the United States for the district and division embracing the place where such action is pending.” 28 U.S.C. § 1441(a). Removal is proper where there is complete diversity of citizenship between the parties and the amount in controversy exceeds the jurisdictional amount of $75,000, exclusive of interest and costs. 28 U.S.C. §§ 1332(a), 1446(c). The removing defendant bears the burden of establishing each jurisdictional element by a preponderance of the evidence. Montoya v. Chao, 296 F.3d 952, 955 (10th Cir. 2002); Middleton v. Stephenson, 749 F.3d 1197, 1200 (10th Cir. 2014). As a matter of general principle, the district court’s jurisdiction is based on “the state of facts that existed at the time of filing.” Hain Celestial Grp., Inc. v. Palmquist, 607 U.S.----, 146 S.Ct. 724, 730 (2026) (quoting Grupo Dataflux v. Atlas Global Grp., L. P., 541 U.S. 567, 571 (2004)). Therefore, the elements of § 1332, including diversity of citizenship, are assessed at the

time of removal. Freeport-McMoRan, Inc. v. K N Energy, Inc., 498 U.S. 426, 428 (1991) (per curiam). Typically, a defendant has 30 days from service of the complaint to seek removal. 28 U.S.C.

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TAMARAH CAUDILL v. LEMBERG GROUP INC., and KIM KONSTANTIN, (D.N.M. 2026).

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