Little League Baseball, Inc. v. Welsh Publishing Group, Inc.

874 F. Supp. 648, 1995 U.S. Dist. LEXIS 1292, 1995 WL 46655
CourtDistrict Court, M.D. Pennsylvania
DecidedFebruary 1, 1995
Docket4:CV-94-1973
StatusPublished
Cited by21 cases

This text of 874 F. Supp. 648 (Little League Baseball, Inc. v. Welsh Publishing Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Little League Baseball, Inc. v. Welsh Publishing Group, Inc., 874 F. Supp. 648, 1995 U.S. Dist. LEXIS 1292, 1995 WL 46655 (M.D. Pa. 1995).

Opinion

MEMORANDUM

McCLURE, District Judge.

BACKGROUND:

On November 21, 1994, plaintiff Little League Baseball, Inc., a corporation chartered by federal statute, 36 U.S.C. §§ 1071-1088, initiated this action with the filing of a complaint in the Court of Common Pleas of Lycoming County, Pennsylvania. The complaint alleges breach of contract by defendant Welsh Publishing Group, Inc.

On December 5, 1994, defendant removed the action to this court. The notice of re *650 moval avers that plaintiff is a citizen of the Commonwealth of Pennsylvania, that defendant is a citizen of the State of New York, and that the amount in controversy exceeds $50,000.00. Notice of Removal at 2 ¶¶ 3, 5, 6. On that basis the court would have original jurisdiction pursuant to 28 U.S.C. § 1332, and removal would be proper under 28 U.S.C. §§ 1441, 1446.

Before the court is plaintiffs motion to remand to the Court of Common Pleas. Plaintiff argues that it is a citizen of the entire United States, and that there is no diversity of citizenship. Plaintiff also argues that remand is required by a “choice of forum” clause set forth in the parties’ contract.

DISCUSSION:

I. REMOVAL

When an action over which a district court has original jurisdiction is brought in a state court, the defendant may remove the action to the district court embracing the place in which the state action is pending. 28 U.S.C. § 1441(a). Removal is effectuated by filing a notice of removal accompanied by all process, pleadings, and orders served upon the defendant. 28 U.S.C. § 1446(a). The notice of removal must contain a short and plain statement of the grounds for removal, id, and the removing defendant must provide notice of the removal to all adverse parties. 28 U.S.C. § 1446(d).

If it appears that the district court lacks subject matter jurisdiction over the matter, the case must be remanded to the state court. 28 U.S.C. § 1447(c). Remand is required in the absence of subject matter jurisdiction at any time before the entry of final judgment. Id

A district court has original jurisdiction over civil actions between citizens of different states in which the amount in controversy exceeds $50,000.00. 28 U.S.C. § 1332(a). There must be complete diversity, i.e. all plaintiffs must be of different citizenship than all defendants, before a district court may exercise jurisdiction founded upon diversity of citizenship. Stanley v. Exxon Corp., 824 F.Supp. 52, 53 (E.D.Pa.1993) (citing Strawbridge v. Curtiss, 7 U.S. (3 Cranch) 267, 2 L.Ed. 435 (1806)).

II. LITTLE LEAGUE, INC.

Plaintiff was incorporated by an act of Congress in 1964. An Act to Incorporate the Little League Baseball, Incorporated, Pub.L. No. 88-378, §§ 1-18, 78 Stat. 325 (1964), codified at 36 U.S.C. §§ 1071-1088, as amended by An Act to amend the Act to Incorporate Little League Baseball to provide that the league shall be open to girls as well as to boys, Pub.L. No. 93-551, 88 Stat. 1744 (1974). The Act declares that the objects and purposes of the corporation are:

(1) To promote, develop, supervise, and voluntarily assist in all lawful ways the interest of young people who will participate in Little League baseball.
(2) To help and voluntarily assist young people in developing qualities of citizenship and sportsmanship.
(3) Using the disciplines of the native American game of baseball, to teach spirit and competitive will to win, physical fitness through individual sacrifice, the values of teamplay and wholesome well-being through healthful and social association with other youngsters under proper leadership.

36 U.S.C. § 1073.

Powers of the corporation include suing and being sued “in any court of competent jurisdiction; ...” 36 U.S.C. § 1074(1). However, the Act does not set forth any particular state of citizenship for the corporation. Instead, the principal office was established in Williamsport, Pennsylvania, “or in such other place as may later be determined by the board of directors,” with the proviso that “the activities of the corporation shall not be confined to that place and may be conducted throughout the various States, the Commonwealth of Puerto Rico, and the possessions of the United States, and in other areas throughout the world.” 36 U.S.C. § 1075(a) (emphasis added). 1 Service of process upon *651 the corporation is made upon a designated agent located in the District of Columbia. 36 U.S.C. § 1075(b).

III. CITIZENSHIP OF A FEDERALLY CHARTERED CORPORATION

Normally, for diversity purposes, a corporation is a citizen both of the state of its incorporation and the state in which its principal place of business is located. 28 U.S.C. § 1332(c). However, when the corporation is federally chartered, citizenship depends upon the language of the statute and the activities authorized by the statute. If the activities of a federally chartered corporation are limited to a single state, either factually or by charter, then the corporation is a citizen of that state. Burton v. United States Olympic Committee, 574 F.Supp. 517, 519 (C.D.Cal.1983) (citing, inter alia, Feuchtwanger Corp. v. Lake Hiawatha Fed. Credit Union, 272 F.2d 453, 454-456 (3d Cir.1959)).

Conversely, if the corporation is organized to do business in several states, and in fact does so, it has national citizenship only. Burton, 574 F.Supp. at 519 (citing Bankers Trust Co. v. Texas & Pacific Rw. Co.,

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Bluebook (online)
874 F. Supp. 648, 1995 U.S. Dist. LEXIS 1292, 1995 WL 46655, Counsel Stack Legal Research, https://law.counselstack.com/opinion/little-league-baseball-inc-v-welsh-publishing-group-inc-pamd-1995.