Kashif Abbas, Titin Atmadja, Marc Biviano, Daniel Lambert, Taylor Yunis, and 9392-3100 Quebec, Inc. v. Section 8 Consulting, LLC f/k/a Freedom for Life, LLC; Recession Proof Blueprint, LLC; and Karim Naoum

Summary

The United States District Court for the Northern District of Illinois considered defendants’ motion to dismiss claims for breach of contract and fraudulent misrepresentation arising from a Section 8 rental-property mentorship program. The court held that plaintiffs failed to establish the amount-in-controversy requirement for diversity jurisdiction because their claimed guaranteed initial and future revenue damages were inadequately supported. The court dismissed the case without prejudice and granted leave to file a third amended complaint.

Holdings

1. Plaintiffs failed to establish by competent proof and a preponderance of the evidence that any individual plaintiff's claim exceeded the $75,000 amount-in-controversy threshold.
2. The alleged guaranteed initial and future revenue damages could not be included in plaintiffs' amount-in-controversy totals because plaintiffs failed to provide competent factual or contractual support for the amounts claimed.
3. The court did not reach the alternative motion for a more definite statement because it was moot after dismissal for lack of subject matter jurisdiction.

Questions Presented

1. Whether plaintiffs established the amount-in-controversy requirement for diversity jurisdiction under 28 U.S.C. § 1332.
2. Whether the court should consider the alleged guaranteed initial and future revenue damages in determining the amount in controversy.
3. Whether defendants' alternative motion for a more definite statement under Federal Rule of Civil Procedure 12(e) should be reached.

Disposition

dismissed