Kenneth Rothschild Trust v. Morgan Stanley Dean Witter

ORDER DENYING PLAINTIFF’S MOTIONS TO REMAND ACTION TO STATE COURT AND TO STRIKE DECLARATION OF SIMON FAR-AHDEL, AND GRANTING DEFENDANT’S MOTION TO DISMISS COMPLAINT

On December 14, 2002, defendant Morgan Stanley Dean Witter removed this putative class action to federal court, asserting that it falls both within the court’s federal question and diversity jurisdiction. The complaint alleges that Morgan Stanley defrauded its clients by misrepresenting the interest to be paid on funds deposited with it for the purchase of certificates of deposit to be issued by a separate financial institution, South Shore Bank. Morgan Stanley contends that plaintiffs state law claims are preempted by the Securities Litigation Uniform Standards Act. Morgan Stanley also asserts that the matter falls within the court’s diversity jurisdiction, as plaintiff is a citizen of California, it is a citizen of New York and Delaware, and the matter in controversy exceeds $75,000.

Plaintiff has now moved to remand, asserting that the suit is not covered by the federal act, and that the complaint does not allege damages satisfying the minimum threshold for diversity jurisdiction. Morgan Stanley has filed a motion…