Meomi Design, Inc. v. Vampire Squid Productions, Ltd.

Background

Meomi Design, Inc. and Immedium, Inc. filed this action on June 17, 2024, against Vampire Squid Productions, Ltd. and Wanda Kids Cultural Development Co. Ltd. The plaintiffs invoked diversity jurisdiction under 28 U.S.C. § 1332, alleging that the parties were diverse and that the amount in controversy exceeded $75,000.

Jurisdictional Issue

For diversity jurisdiction, each plaintiff must be a citizen of a different state from each defendant. The court noted that Meomi Design was identified as a Canadian corporation; Immedium as a California corporation based in San Francisco; Vampire Squid as an English company based in the United Kingdom; and Wanda as the China-based majority shareholder of Vampire Squid. The complaint alleged, on information and belief, that Wanda was a Chinese company based in either Beijing or Hong Kong.

The court concluded that it appeared to lack subject-matter jurisdiction because one side included a United States citizen and a foreign entity while the other side consisted only of foreign entities. The court also noted that even if Vampire Squid's New York office were its principal place of business, the presence of another foreign party on the opposite side would still defeat diversity under the authority cited.

Order

The court did not yet dismiss the action. It ordered the plaintiffs to show cause by June 21, 2024, why the action should not be dismissed for lack of subject-matter jurisdiction. The opinion states that if jurisdiction is lacking, the court must dismiss the action, but this order itself only requires the plaintiffs to respond.