CHRISTOPHER R. COOPER, District Judge.
On July 22, 2015, the Court granted a motion by Plaintiff BGC Partners, Inc. ("BGC") to remand this case to the District of Columbia Superior Court, where it had originated prior to Defendant Avison Young's removal based on federal bankruptcy and diversity jurisdiction.
As detailed in the Court's July 22, 2015 Memorandum Opinion, this case arose from a dispute between two real estate brokerage firms, New York-based BGC and Toronto-based Avison Young. BGC alleges that Avison Young's expansion into the United States market was fueled by a conspiracy to steal clients and brokers from a third firm, Grubb & Ellis, which entered bankruptcy in 2012, and whose assets BGC purchased shortly thereafter. BGC further contends that Avison Young continued to steal Grubb & Ellis's brokers and commissions during the bankruptcy proceedings.
Later in 2012, BGC sued Avison Young in New York state court for tortious interference with contractual relationships, tortious interference with prospective business relationships, unjust enrichment, and other claims.
BGC—along with its two affiliates G&E Acquisition Company, LLC, and G&E Real Estate, Inc.—then brought suit in the District of Columbia Superior Court against Avison Young; its affiliates Avison Young-Washington, D.C., LLC, and Avison Young (USA) Inc.; and its CEO, Mark Rose, again raising claims of tortious interference and unjust enrichment in addition to new claims for conspiracy, theft of trade secrets, and conversion. Following Avison Young's removal of the case to this Court—on the basis of federal bankruptcy jurisdiction due to the case's connection to the Grubb & Ellis bankruptcy, and diversity jurisdiction—BGC moved to remand. The Court granted the motion to remand, concluding that diversity jurisdiction and certain types of federal bankruptcy jurisdiction were lacking and that the Court was required to abstain from exercising another type of bankruptcy jurisdiction.
Avison Young now moves this Court to reconsider its decision granting BGC's motion to remand. It contends that the Court misconstrued its assertion of "arising under" jurisdiction and failed to fully consider the relevant facts pertaining to diversity jurisdiction. Because the Court did consider Avison Young's argument as to "arising under" jurisdiction and because the forum defendant rule bars diversity jurisdiction in this case, the Court will deny the motion to reconsider.
As an initial matter, the parties differ on whether the Court has jurisdiction to entertain Avison Young's motion for reconsideration. BGC contends that the Court's remand order divested it of jurisdiction over any subsequent motion in the case. Avison Young counters that the Court retains jurisdiction over the motion because its remand order had not yet been certified to the Superior Court when the motion was filed. The resolution of this question is not entirely straightforward. Avison Young is incorrect that the remand order was not certified prior to the filing of its motion. The remand order was issued and transmitted by the Clerk of the District Court on July 23, 2015, and the Superior Court re-opened and docketed the case the same day. See
But that does not necessarily end the inquiry. Title 28 of the U.S. Code, section 1447(d) provides in relevant part that "[a]n order remanding a case to the State court from which it was removed is not reviewable on appeal or otherwise...." "Or otherwise" logically includes review on a motion for reconsideration filed with the district court.
Federal courts have "original and exclusive jurisdiction of all cases under title 11." 28 U.S.C. § 1334(a). But federal courts have "original but not exclusive jurisdiction of all civil proceedings
Avison Young contends that the Court addressed "arising in" jurisdiction even though Avison Young did not assert it, and that the Court failed to address the argument it did assert for "arising under" jurisdiction. While the Court incompletely labeled the jurisdictional analysis section of its earlier opinion "`Arising in' Jurisdiction," Mem. Op., ECF No. 19, at 4, it addressed "arising under," as well as "arising in," jurisdiction in that section. The Court noted that § 362(k) of title 11 provides a cause of action that BGC could have brought, and that "arising under" jurisdiction would lie if a violation of that section had been alleged. The Court went on to explain that, because BGC did not bring a claim under that section, but rather mounted only state law claims not made "pursuant to a provision of title 11,"
Avison Young also contends that the Court did not consider all of its diversity jurisdiction arguments and overlooked the totality of the circumstances surrounding BGC's diversity jurisdiction assertions. According to Avison Young, BGC did not offer sufficient proof of citizenship, and therefore, further jurisdictional discovery is needed to determine whether there is diversity jurisdiction. BGC counters that not only is there no diversity of citizenship, but that even if there were, the forum defendant rule would prevent Avison Young from removing the case to this Court.
Avison Young acknowledges that several members of its subsidiary AY-Washington, D.C. are citizens of the District of Columbia. Defs.' Opp'n Mot. Remand, Ex. H. As the Court explained in its previous opinion, even if all of BGC's subsidiaries were completely diverse from Avison Young and its subsidiaries, the forum defendant rule bars removal based on diversity jurisdiction because Avison Young, through members of a subsidiary, is a citizen of Washington, D.C.
For the foregoing reasons, it is hereby