Sanwire Corporation v. Intercept Music Group, Inc. et al.

Summary

The United States District Court for the District of Nevada grants Sanwire Corporation’s motion to remand, concluding that defendants failed to establish that Nevada defendant Intercept Music Group, Inc. was fraudulently joined. The court finds a possibility that Sanwire could amend its claims for conversion and unjust enrichment against the nondiverse defendant. The defendants’ motions to dismiss are denied as moot.

Holdings

1. Intercept Music Group, Inc. was not shown to be fraudulently joined because the court could not conclude that there was no possibility that a Nevada state court would find that Sanwire could state a cause of action against it.
2. Sanwire established a sufficient possibility of stating conversion and unjust-enrichment claims against Intercept Music Group, Inc. through amendment, even though the present complaint was insufficiently specific.
3. The alleged failure to plead a sufficient tortious-interference claim did not defeat remand because the possibility of viable conversion and unjust-enrichment claims against Intercept Music Group remained.

Questions Presented

1. Whether Intercept Music Group, Inc. was fraudulently joined so that its Nevada citizenship could be disregarded for purposes of diversity jurisdiction.
2. Whether the possibility that Sanwire could amend its complaint to state conversion or unjust-enrichment claims against Intercept Music Group required remand.
3. Whether defendants' motion to dismiss remained justiciable after remand was granted.

Disposition

remanded