Summary
The United States Magistrate Judge grants Plaintiff Moath Benyamen Youse Asfour leave to proceed in forma pauperis. The document recommends dismissing without prejudice his Federal Arbitration Act petition to compel Uber Technologies Inc. to arbitrate because the alleged amount in controversy is $20,000, below the $75,000 threshold for diversity jurisdiction, and no independent federal-question jurisdiction is established. The order and report and recommendation was signed on January 9, 2026.
Holdings
- Plaintiff was unable to pay the filing fee without undue financial hardship and therefore was entitled to proceed in forma pauperis.
- The Federal Arbitration Act does not create an independent basis for federal subject matter jurisdiction.
- The complaint did not establish diversity jurisdiction because Plaintiff alleged only $20,000 in damages, below the $75,000 amount-in-controversy requirement.
- The district court should dismiss the action without prejudice for lack of subject matter jurisdiction.
Questions Presented
- Whether the Federal Arbitration Act independently supplies federal subject matter jurisdiction over a petition to compel arbitration.
- Whether the complaint established diversity jurisdiction when the amount in controversy alleged was $20,000.
- Whether the complaint should be dismissed without prejudice under 28 U.S.C. § 1915(e)(2) for lack of subject matter jurisdiction.
- Whether Plaintiff should be granted leave to proceed in forma pauperis.
Disposition
other
Cases Cited (14)
- Prows v. Kastner, 842 F.2d 138, 140 (5th Cir. 1988)(followed)
- Moore v. McDonald, 30 F.3d 616, 621 (5th Cir. 1994)(followed)
- Erickson v. Pardus, 551 U.S. 89, 94 (2007)(followed)
- Haines v. Kerner, 404 U.S. 519, 520 (1972)(followed)
- Farguson v. MBank Houston, N.A., 808 F.2d 358, 359 (5th Cir. 1986)(followed)
- Badgerow v. Walters, 596 U.S. 1, 7 (2022)(followed)
- Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377 (1994)(followed)
- Kottke v. Midland Credit Mgmt., Inc., No. 1:24-CV-01509-DII, 2024 WL 5398816, at *2 (W.D. Tex. Dec. 11, 2024)(followed)
- Moses H. Cone Mem'l Hosp. v. Mercury Constr. Corp., 460 U.S. 1, 25 n.32 (1983)(followed)
- Vaden v. Discover Bank, 556 U.S. 49, 53 (2009)(followed)
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