SGP USA LLC v. AM Sailing Purchaser LLC and Doug DeVos

Summary

The United States District Court for the District of Delaware grants SGP USA LLC’s motion to remand an action against AM Sailing Purchaser LLC and Doug DeVos to the Delaware Court of Chancery. The court concludes that diversity jurisdiction is absent because all parties are Michigan citizens and that defendants had not established federal question jurisdiction under the Federal Arbitration Act at the time of removal.

Holdings

1. The Court lacked diversity jurisdiction because SGP USA, AM Sailing, and DeVos were all citizens of Michigan, defeating complete diversity.
2. Defendants failed to establish federal-question jurisdiction because their motion to compel arbitration was filed after removal and therefore could not supply jurisdiction based on the record existing when the Notice of Removal was filed.

Questions Presented

1. Whether the District Court had diversity jurisdiction under 28 U.S.C. § 1332 when SGP USA, AM Sailing, and DeVos were all citizens of Michigan.
2. Whether the District Court had federal-question jurisdiction under the Federal Arbitration Act based on Defendants' post-removal motion to compel arbitration and the alleged relationship of the action to an arbitration agreement falling under the New York Convention.
3. Whether the propriety of removal and remand must be determined from the record existing at the time of removal.

Disposition

remanded