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

Summary

The District of Delaware remands SGP USA LLC v. AM Sailing Purchaser LLC and Doug DeVos to the Delaware Court of Chancery for lack of subject-matter jurisdiction. The court concludes that the defendants' motion to compel arbitration did not establish original jurisdiction under 9 U.S.C. § 203 and that 9 U.S.C. § 205 authorizes removal but does not itself necessarily confer subject-matter jurisdiction. The court denies SGP USA's request for costs and attorney fees, grants the request to adopt prior remand briefing, and denies the remaining relief as moot or without prejudice.

Holdings

1. A defendant's motion to compel arbitration, particularly a motion filed after remand, does not transform the action into an action or proceeding falling under the Convention for purposes of establishing original jurisdiction under 9 U.S.C. § 203.
2. Section 205 authorizes removal of qualifying Convention-related cases but does not necessarily confer subject-matter jurisdiction over the action.
3. The action must be remanded to the Delaware Court of Chancery because the district court lacked subject-matter jurisdiction.
4. Plaintiff was not entitled to just costs or actual expenses, including attorney fees, incurred as a result of the re-removal.

Questions Presented

1. Whether Defendants established original federal subject-matter jurisdiction under 9 U.S.C. § 203 based on their motion to compel arbitration.
2. Whether 9 U.S.C. § 205 independently conferred subject-matter jurisdiction over the re-removed action.
3. Whether the action should be remanded under 28 U.S.C. § 1447(c).
4. Whether Plaintiff was entitled to just costs and actual expenses, including attorney fees, incurred as a result of the re-removal.
5. Whether the request for expedited briefing on Plaintiff's renewed temporary-restraining-order motion was moot.

Disposition

remanded