Good Times Restaurants, LLC v. Shindig Hospitality Group, LLC

Background

Good Times Restaurants, LLC voluntarily filed a first amended complaint. The amended complaint included a federal trademark-infringement claim under 15 U.S.C. § 1125. The court therefore concluded that it had subject-matter jurisdiction.

Jurisdictional pleading defect

The amended complaint incorrectly alleged that jurisdiction was based on diversity of citizenship and did not identify the trademark claim as the basis for federal jurisdiction. The court stated that there was no diversity in the case, as it had previously noted. But it treated the incorrect jurisdictional allegation as a pleading defect rather than a fatal problem.

Under 28 U.S.C. § 1653, defective jurisdictional allegations may be amended. The court directed Good Times to file a second amended complaint properly alleging jurisdiction under the federal trademark laws and the federal-question statute, citing 15 U.S.C. § 1121(a) and 28 U.S.C. §§ 1331 and 1338.

Order and effect

Good Times was required to file the second amended complaint by July 29, 2022. After that filing, Shindig Hospitality Group, LLC would need to timely amend its answer, counterclaim, and third-party complaint. Good Times and the third-party defendants could then renew their motions to dismiss and to strike portions of the counterclaim and third-party complaint.

The court denied as moot the pending motions to dismiss and to strike portions of the first amended counterclaim and third-party complaint. The order addressed the jurisdictional allegations and case-management consequences; it did not decide the merits of the trademark claim or the other claims.