FN Logistics v. The Compliance Firm CA2/1

BACKGROUND

A. Factual Summary FNL operates a warehouse in Santa Fe Springs, California, from which it distributes clothing sold by the retail company Fashion Nova, LLC (Fashion Nova). In November 2020, FNL sought to provide COVID-19 testing services for its warehouse employees. According to FNL’s complaint, TCF purported to provide healthcare consulting and “affordable and efficient onsite C[OVID]-19 testing.” FNL contracted with TCF to provide COVID-19 testing. After some time, FNL determined TCF was “unqualified and unauthorized to provide C[OVID]-19 testing at FNL’s facility.” On January 6, 2021, FNL terminated the parties’ relationship. B. Procedural History 1. The Federal Matters On April 16, 2021, FNL filed the First Federal Action. The complaint alleged Stillwell was the sole member of TCF and

3 resided in Nevada, purportedly giving rise to diversity jurisdiction in the district court. FNL did not name Stillwell as a defendant and did not otherwise refer to Stillwell by name in its complaint. FNL asserted 13 claims, including rescission, conversion, breach of fiduciary duty, violation of Business and Professions Code section 17200 et seq., misrepresentation,…