Mitchell Ex Rel. Stanzak v. Artists Rights Enforcement Corp.

MEMORANDUM

Plaintiff-Appellee Guy Mitchell & Betty J. Mitchell Family Trust (“the Trust”) sued Defendant-Appellant Artists Rights Enforcement Corporation (“AREC”) for breach of contract stemming from AREC’s alleged violation of a royalties agreement between the two parties. The district court held that it had diversity jurisdiction under 28 U.S.C. § 1332 (a), and after a bench trial, determined that AREC had breached its contract with the Trust, that AREC’s breach was material, and that AREC’s breach justified rescinding the contract in full.

On appeal, AREC challenges the district court’s determination that it had diversity jurisdiction over the Trust’s suit, as well as its conclusion that AREC’s breach of the royalties contract justified the contract’s rescission. We have jurisdiction over this appeal pursuant to 28 U.S.C. § 1291 . We review the district court’s decision to exercise diversity jurisdiction de novo and review “for clear error the district court’s findings of fact relevant to its determination of subject matter jurisdiction.” Crum v. Circus Circus Enters., 231 F.3d 1129, 1130 (9th Cir. 2000). “We review the district court’s findings of fact after a bench trial…