Continental Motion Pictures v. Allstate Film Co.

ORDER DENYING MOTION TO DISMISS FOR LACK OF SUBJECT MATTER JURISDICTION

1. INTRODUCTION

Defendants Len Turner (“Turner”) and All State Film Company (“All State”) seek to dismiss plaintiff’s complaint for breach of contract, fraud, and negligent misrepresentation on the ground that the Court allegedly lacks diversity jurisdiction over this action because defendant Turner is a citizen of California and defendants allege plaintiff Continental Motion Pictures (“Continental”) has a dual corporate citizenship including a principal place of business in Los Angeles. Defendants also claim that the count for negligent misrepresentation is barred by the State’s statute of limitations.

The defendants’ first basis for dismissal is that diversity does not exist because the plaintiff as a corporation has dual citizenship under Section 1332(c), including its place of incorporation and its principal place of business. Defendants argue on what appears to be circumstantial evidence that the plaintiff has a principal place of business in the Los Angeles area. If this allegation were true and Section 1332(c) applies to alien corporations, diversity jurisdiction would be defeated.

Plaintiff…