ALISON J. NATHAN, District Judge.
In 2012, the London Court of International Arbitration rendered an award in favor of Petitioner Mont Blanc Trading Ltd. ("Mont Blanc") against Respondents Zahid Ali Khan and Z2 Group FZCO ("Z2") for breach of contract. Mont Blanc won an order confirming the award from the Commercial Court, Queen's Bench Division, of the English High Court of Justice. On January 31, 2013, Mont Blanc filed a petition in this Court seeking recognition of the English judgment. Respondents never noticed an appearance, and the Court issued an order to show cause why a default judgment should not be entered against Khan.
When a foreign court confirms an arbitration award and the winning party petitions to have that judgment enforced in the United States, the resulting action involves the enforcement of the foreign court's judgment, not the enforcement of the underlying arbitration award. See Victrix S.S. Co. v. Salen Dry Cargo A.B., 825 F.2d 709, 713 n.2 (2d Cir. 1987); Ocean Warehousing B.V. v. Baron Metals & Alloys, Inc., 157 F.Supp.2d 245, 249 (S.D.N.Y. 2001). Consistent with this principle, Mont Blanc's petition is styled as a "Petition for Recognition and Enforcement of a Foreign Judgment," Dkt. No. 1, and Mont Blanc never urges the Court to look to the law governing the enforcement of arbitration awards. Thus, the law applicable to foreign court judgments provides the proper framework for analysis.
The federal statute governing actions to enforce foreign arbitration awards—which creates federal jurisdiction over those actions, see 9 U.S.C. § 203—has no federal counterpart applicable to actions to enforce foreign court judgments. Instead, the enforceability of foreign court judgments is a matter of state law—in this case, Article 53 of New York's Civil Practice Law and Rules.
Federal courts are courts of limited jurisdiction, and "possess only that power authorized by Constitution and statute." Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377 (1994). Federal question jurisdiction extends to cases "arising under the Constitution, laws, or treaties of the United States." 28 U.S.C. § 1331 (emphasis added). Therefore, Mont Blanc cannot point to a New York statute as the basis for the Court's jurisdiction. Nor does the parties' contractual dispute raise a "stated federal issue, actually disputed and substantial, which a federal forum may entertain without disturbing any congressionally approved balance of federal and state judicial responsibilities." Grable & Sons Metal Prods., Inc. v. Darue Eng'g & Mfg., 545 U.S. 308, 314 (2005). Accordingly, the Court does not have federal question jurisdiction over Mont Blanc's petition.
Federal courts also have jurisdiction over cases between "citizens of a State and citizens or subjects of a foreign state," and those between "citizens of different States and in which citizens or subjects of a foreign state are additional parties." 28 U.S.C. § 1332(a)(2), (3); see, e.g., British Midland Airways Ltd. v. Int'l Travel, Inc., 497 F.2d 869, 871 n.2 (9th Cir. 1974) (exercising diversity jurisdiction over action to enforce English judgment); Somportex Ltd. v. Phila. Chewing Gum Corp., 453 F.2d 435, 440 (3d Cir. 1971) (same). But Mont Blanc is a Mauritius company organized under Mauritius law, Khan is a Pakistani national who lives in the United Arab Emirates, and Z2 is a U.A.E. company organized under U.A.E law. Pet. ¶¶ 2-4. Diversity jurisdiction does not extend to cases in which only aliens are parties. See Universal Licensing Corp. v. Paola del Lungo S.p.A., 293 F.3d 579, 580-81 (2d Cir. 2002); Khan v. State Bank of India, No. 01 Civ. 1305 (SAS), 2001 WL 1463783, at *2 (S.D.N.Y. Nov. 15, 2001). As a result, the Court also lacks diversity jurisdiction over Mont Blanc's petition.
The Court is, frankly, baffled by Mont Blanc's assertion that whether the Court has diversity or federal question jurisdiction is not "relevant."
"[F]ailure of subject matter jurisdiction is not waivable and may be raised at any time by a party or by the court sua sponte. If subject matter jurisdiction is lacking, the action must be dismissed." Lyndonville Sav. Bank & Trust Co. v. Lussier, 211 F.3d 697, 700-01 (2d Cir. 2000). Because Mont Blanc has not provided a basis on which the Court might exercise subject matter jurisdiction and the Court has not uncovered one, Mont Blanc's petition must be dismissed. Therefore, the Court does not reach the parties' arguments regarding personal jurisdiction. The Clerk of Court is requested to terminate this case.
SO ORDERED.