Recently I had a former client try to sue the American Arbitration Association in Federal Court – Southern District of New York. He claims that he did not consent to Arbitration (which is false) and he contests (two years later) and the enforceability of an arbitration provision between him and his former business partner. The Court dismissed his claims because he failed to show that the court had jurisdiction. The decision is attached below however the key part of that decisions states:
“…the Federal Arbitration Act (“FAA”) does not independently grant subject matter jurisdiction to a federal district court. See, Moses H. Cone Mem. Hosp. v. Mercury Constr. Corp., 460 U.S. 1, 25 n.32 (1983). “A federal court may entertain an action brought under the FAA only if the action has an independent jurisdictional basis.”‘ Badgerow v. Walters, 142 S. Ct. 1310, 1316 (2022). Thus, “an applicant seeking, for example, to vacate an arbitral award under Section 10 [of the FAA] must identify a grant of jurisdiction, apart from Section 10 itself, conferring ‘access to a federal forum.”‘ Id. (citation omitted). If the applicant shows that the matter falls under the Court’s federal question or diversity jurisdiction, as set forth generally in 28 U.S.C. §§ 1331 and 1332, then a federal district court may consider a motion under the FAA. See id.”
Here, the Plaintiff failed to show that any of the Defendants in his (frivolous) lawsuit resided in different states other than New York, and he failed to claim that his lawsuit exceeded the $75,000 threshold for federal court jurisdiction. He failed to allege the most basic elements of any Complaint.
No jurisdiction = no lawsuit. It’s that simple.
See the full decision: show_temp
