Yokeno v. Sekiguchi

Plaintiff filed suit against defendants in the Superior Court of Guam, asserting claims arising from alleged breach of fiduciary duty in the course of the parties' several business ventures. Defendants removed to the District Court of Guam based on diversity jurisdiction. Plaintiff is an alien admitted to the United States for permanent residence, living in Guam. Defendant Lai, a British Overseas Citizen, and Defendant Sekiguchi, a Japanese citizen, both live in Japan. The district court granted summary judgment on the merits in favor of defendants and plaintiff appealed, contesting subject matter jurisdiction for the first time. Whether or not Congress intended to confer jurisdiction in cases like this one by supplying constitutionally required minimal diversity through deemed citizenship, the deeming clause purported to do so. The court concluded, however, that the Organic Act of Guam, 48 U.S.C. 1421-1421k-1, precluded it from deciding the merits of the dispute between aliens because it conferred diversity jurisdiction upon the District Court of Guam reaching only as far as the diversity jurisdiction afforded to Article III courts. Because the Constitution does not supply diversity jurisdiction to Article III courts in suits between aliens, the jurisdiction afforded the federal court in Guam must also be so limited. Accordingly, the court vacated and remanded, concluding that both the court and the District Court of Guam lacked jurisdiction to decide this dispute exclusively between aliens. View "Yokeno v. Sekiguchi" on Justia Law