Bal v. Ouraring Inc.

Background

The complaint alleges that federal subject-matter jurisdiction exists based on diversity jurisdiction under 28 U.S.C. § 1332. The opinion states that the plaintiffs are alleged to be foreign citizens and that one defendant is also alleged to be a foreign citizen.

Jurisdiction issue

Diversity jurisdiction is a basis for federal jurisdiction that can apply when parties have the citizenship relationships specified in § 1332. The court explained, however, that diversity jurisdiction does not exist in a case involving a foreign-citizen plaintiff suing a foreign-citizen defendant, even when a citizen of a U.S. state is also a defendant. Based on the allegations in the complaint, the court stated that diversity jurisdiction therefore did not appear to exist. The court also stated that no other basis for subject-matter jurisdiction appeared to have been alleged.

Order

The court ordered the plaintiffs to show cause—meaning to explain why the court has jurisdiction—through a written response of no more than five pages due December 5, 2025. The defendants may file an optional reply of no more than five pages by December 12, 2025. Judge Rita F. Lin vacated the case-management conferences scheduled for December 10, 2025, and the associated deadlines; those matters may be reset after the court receives the plaintiffs' response. The opinion does not dismiss the case or make a ruling on the underlying claims.