Jurisdiction
Author | International Law Group |
Pages | 212-213 |
Page 212
Plaintiffa s, including a Grand Cayman Islands corporation, brought suit in a U.S. federal district court on claims of fraud and breach of contract against a South Korea corporation and a citizen of South Korea. Defendants moved to dismiss the suit, asserting that the district court lacked jurisdiction, and the motion was granted. Plaintiffa s appealed to Page 213 the Sixth Circuit, which affirmed the district court's ruling.
Plaintiffas argued that complete diversity existed under 28 U.S.C. ß1332(a)(2) because Peninsula Asset Management Cayman Ltd. maintained its principle place of business in the United States, even though it was incorporated under the laws of the Grand Cayman Islands. The Court rejected this argument, asserting that it is well established that, under ß1332(a)(2) even if a foreign corporation maintains its principal place of business in a State, and is considered a citizen of that State, diversity is defeated if another alien party is present on the other side of the litigation (citing Creaciones Con Idea, S.A. de C.V. v. Mashreqbank PSC, 232 F.3d 79, 82 (2d Cir. 2000)).
The Court also...
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