SGP USA LLC v. AM Sailing Purchaser LLC and Doug DeVos
SGP USA LLC v. AM Sailing Purchaser LLC and Doug DeVos
Trial Court Opinion
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELAWARE
SGP USA LLC,
Plaintiff,
“ Civil Action No. 26-257-CFC
AM SAILING PURCHASER LLC
and DOUG DEVOS,
Defendants.
MEMORANDUM ORDER
This case was before me in Civil Action No. 26-182. I remanded that action’
to the Delaware Court of Chancery based on lack of subject-matter jurisdiction.
No. 26-182, D.I. 65. One day later, Plaintiff SGP USA LLC sought temporary
injunctive relief (for the third time in this case) and informed the Court of
Chancery that Defendants AM Sailing Purchaser LLC and Doug DeVos had
already resolved to seek a second bite at the federal court apple. D.I. 2-2
at 564—69; see D.I. 2-2 at 566 (“Defendants have informed [SGP USA] that they
intend to file a motion to compel arbitration in [the Court of Chancery] and then
remove this case to federal court again’’) (emphasis in original).
Two days after remand, AM Sailing and DeVos filed two motions in the
Court of Chancery: (1) DeVos’s motion to dismiss for lack of personal jurisdiction
(D.I. 2-2 at 534-35); and (2) AM Sailing and DeVos’s motion to compel
arbitration under 9 U.S.C. § 203 and 9 U.S.C. § 205 (D.I. 2-2 at 11-12).
AM Sailing and DeVos then filed a “Notice of Re-Removal” in this Court based on
federal question jurisdiction under § 203 and § 205. D.I. 2; see also DI. 2-3 (Civil
Cover Sheet marking “Federal Question” as the basis of jurisdiction). Later that
day, SGP USA filed a (1) Renewed Motion to Remand and Request to Adopt Prior
Briefing Thereon; (2) Renewed Motion for a Temporary Restraining Order (TRO)
and Expedited Briefing Thereon; and (3) Request to Adopt Parties’ Prior Briefing
on Defendants’ Motion to Compel Arbitration. D.I. 9.
After SGP USA filed its request for expedited briefing on its Renewed
Motion for a TRO, Defendants filed their opposition (D.I. 17) and SGP USA filed
its reply (D.I. 23). Accordingly, the request for expedited briefing is now moot!
' That is not to say that Defendants have not delayed filing their opposition.
SGP USA has requested a TRO four times in this case: (1) February 13 Motion for
a Temporary Restraining Order filed in the Court of Chancery (No. 26-182,
D.I. 2-2 at 9-39); (2) February 27 Motion for Temporary Restraining Order filed in
this Court (No. 26-182, D.I. 31); (3) March 10 letter request for temporary
injunctive relief filed in the Court of Chancery (D.I. 2-2 at 564-69); and
(4) March 11 Renewed Motion for a Temporary Restraining Order filed in this
Court (D.I. 9). Defendants have in turn resisted responding on an expedited
timeline four times: (1) Defendants removed the case to this Court on the day
Defendants were required to file their opposition to SGP USA’s first TRO motion,
No. 26-182, DI. 2; (2) Defendants opposed SGP USA’s Motion to Set Briefing
Schedule on Plaintiff's Motion for a Temporary Restraining Order, No. 26-182,
D.I. 53, and I remanded Civil Action No. 26-182 on March 9 before Defendants
would have been required to respond to SGP USA’s second TRO motion on
March 13, No. 26-182, D.I. 65; (3) Defendants re-removed the case to this Court
on March 11 before any order setting a briefing schedule on SGP USA’s third
Defendants do not oppose (D.I. 11 at 2), and I will grant, SGP USA’s
request to adopt prior briefing in Civil Action No. 26-182 on the Renewed Motion
to Remand.
I.
I will address the Renewed Motion to Remand before the Renewed Motion
for a TRO because SGP USA lists its “Renewed Motion to Remand” first among
its requests for relief in the pending motion. D.I. 9 at 2-4; see also No. 26-182,
D.I. 26 (SGP USA’s Motion to Remand filed before its Motion for a TRO
(No. 26-182, D.I. 31) in Civil Action No. 26-182); but see United States v. United
Mine Workers of Am., 330 U.S. 258, 292 (1947) (“Pending a decision on a doubtful
question of jurisdiction, the District Court was held to have power to maintain the
status quo... .”); No. 26-182, D.I. 53 at 2 (Defendants agreeing that “a federal
court may enter a TRO to preserve the status quo while determining whether it has
Jurisdiction”) (citing United Mine Workers of Am., 330 U.S. 258 at 292).
Defendants argue that I should resolve their March 11 motion to compel
arbitration filed in the Court of Chancery” before SGP USA’s March 11 Renewed
TRO request, D.I. 2; and (4) Defendants opposed SGP USA’s request for
expedited briefing on SGP USA’s fourth motion for a TRO, D.I. 11 at 2-3.
* Defendants’ Motion to Compel Arbitration filed in Civil Action No. 26-182
(No. 26-182, D.I. 42) is not pending before me because Civil Action No. 26-182
has been closed (No. 26-182, D.I. 65).
Motion to Remand filed in this Court. D.I. 11 at 1-2. Setting aside whether the
motion to compel arbitration is indeed pending before this Court,? “a federal court
generally may not rule on the merits of a case without first determining that it has
jurisdiction over the category of claim in suit (subject-matter jurisdiction) and the
parties (personal jurisdiction).” Sinochem Int’l Co. v. Malaysia Int’l Shipping
Corp., 549 U.S. 422, 430-31 (2007) (citation omitted); see also Hines v. Stamos,
111 F.4th 551, 566 (Sth Cir. 2024) (“[Ml]otions to compel arbitration are not one of
the limited instances in which district courts have leeway to pretermit the
resolution of jurisdictional challenges.”). Accordingly, I will address the Renewed
Motion to Remand challenging this Court’s subject-matter jurisdiction before any
motion to compel arbitration. (Likewise, I would address a motion to dismiss for
lack of personal jurisdiction before a motion to compel arbitration.)
Il.
“It is settled that the removal statutes [28 U.S.C. §§ 1441-1452] are to be
strictly construed against removal and all doubts should be resolved in favor of
remand.” Steel Valley Auth. v. Union Switch & Signal Div., 809 F.2d 1006, 1010
(3d Cir. 1987) (citation omitted). Chapter 2 of the Federal Arbitration Act (the
> District of Delaware Local Rule 81.2 requires that “[i]n any case . . . removed to
this Court, within 21 days of the filing of the case with the Clerk, the parties shall
submit a statement identifying all pending matters which require judicial action.”
D. Del. LR 81.2.
FAA) applies “[t]he procedure for removal of causes otherwise provided by law”
with one exception “that the ground for removal provided in [9 U.S.C. § 205] need
not appear on the face of the complaint but may be shown in the petition for
removal.” 9 U.S.C. § 205. The removal statute governing “[p]rocedure after
removal generally” dictates that “[i]f at any time before final judgment it appears
that the district court lacks subject matter jurisdiction, the case shall be remanded.”
28 U.S.C. § 1447(c). “[T]he party asserting federal jurisdiction when it is
challenged has the burden of establishing it.” DaimlerChrysler Corp. v. Cuno, 547
U.S. 332, 342 n.3 (2006); see also Kokkonen v. Guardian Life Ins. Co. of Am., 511
U.S. 375, 377 (1994) (“It is to be presumed that a cause lies outside [a federal
court’s] limited jurisdiction and the burden of establishing the contrary rests upon
the party asserting jurisdiction.”’) (citation omitted).
LET
Defendants argue that (1) re-removal was proper under 9 U.S.C. § 205 of the
FAA and 28 U.S.C. §§ 1441 and 1446 of the removal statutes, D.I. 2 at 1, 9; and
(2) the Court has federal question jurisdiction over the re-removed action under
9 U.S.C. §§ 203 and 205 of the FAA, D.I. 2 §§ 18-29; No. 26-182, D.I. 48 at 1-12.
SGP USA does not dispute that re-removal to federal court was procedurally
proper under 9 U.S.C. § 205 or 28 U.S.C. § 1446. See D.I. 9 at 2-3 (relying on
prior briefing). SGP USA instead maintains its argument that the Court lacks
federal question jurisdiction under § 203 and § 205 of the FAA such that
(1) 28 U.S.C. § 1441(a) cannot serve as an additional basis for re-removal and
(2) remand is necessitated under 28 U.S.C. § 1447(c). No. 26-182, D.I. 26
at 11-19; No. 26-182, D.I. 55 at 1-11; see also D.I. 9 at 2-3 n.3 (acknowledging
that “absence of diversity jurisdiction” and “failure to file a motion to compel
arbitration in state court prior to removal” are no longer grounds asserted in the
Renewed Motion to Remand).
A.
I will first address whether Defendants have met their burden to show that
the Court has subject-matter jurisdiction over the re-removed action under § 203.
* The irony not lost on me is that Defendants were able to file an amended Notice
of Re-Removal (asserting a new jurisdictional basis under § 205 and new
allegations that SGP USA did not agree to arbitration and that Defendants filed a
motion to compel arbitration in state court) within the thirty days provided by
§ 1446(b) because (1) SGP USA filed its Motion to Remand in Civil Action
No. 26-182 on February 27 before its thirty-day deadline under 28 U.S.C.
§ 1447(c); (2) SGP USA requested—and I granted—expedited briefing on the
Motion to Remand in Civil Action No. 26-182 to be completed on March 6; and
(3) I acted expeditiously to remand Civil Action No. 26-182 on March 9. See
generally RICHARD SAUNDERS, PHILOM., Poor Richard, Selections from His
Almanack (Ben Franklin Print Shop 1934) (1733-58) (“Haste makes Waste.”); see
also id. (“Make haste slowly.”).
l.
Section 203 of the FAA, titled “Jurisdiction; amount in controversy,”
provides in relevant part that
An action or proceeding falling under the Convention shall
be deemed to arise under the laws and treaties of the
United States. The district courts of the United States...
shall have original jurisdiction over such an action or
proceeding ....
9 USC. § 203; see also GE Energy Power Conversion France SAS, Corp. v.
Outokumpu Stainless USA, LLC, 590 U.S. 432, 439 (2020) (“Chapter 2 [of the
FAA] grants federal courts jurisdiction over actions governed by the
Convention[.]”’) (citing 9 U.S.C. § 203).
The FAA does not define “[a]n action or proceeding falling under the
Convention.” See generally 9 U.S.C. §§ 1-401. The Supreme Court, however, has
explained that “Chapter 2 of the FAA . . . expressly grant[s] federal courts
Jurisdiction to hear actions seeking to enforce an agreement or award falling under
the Convention on the Recognition and Enforcement of Foreign Arbitral Awards.”
Vaden v. Discover Bank, 556 U.S. 49, 59 n.9 (2009) (citing 9 U.S.C. § 203); see
also Convention art. I1(3) (referring to “an action in a matter in respect of which
the parties have made an agreement within the meaning of this article”).
Section 202 of the FAA in turn defines an arbitration agreement that
“falls under the Convention”:
An arbitration agreement ... arising out of a legal
relationship, whether contractual or not, which is
considered as commercial, including a_ transaction,
contract, or agreement described in section 2 of this title,
falls under the Convention. An agreement... arising out
of such a relationship which is entirely between citizens of
the United States shall be deemed not to fall under the
Convention unless that relationship involves property
located abroad, envisages performance or enforcement
abroad, or has some other reasonable relation with one or
more foreign states.
9 ULS.C. § 202; see also Century Indem. Co. v. Certain Underwriters at Lloyd's,
London, 584 F.3d 513, 523 n.8 (3d Cir. 2009) (“An arbitration agreement falls
within the New York Convention when the agreement (1) is an agreement in
writing to arbitrate the subject of a dispute, (2) provides for arbitration in the
territory of a signatory to the Convention, (3) arises out of a legal relationship,
contractual or not, that is considered commercial, and (4) is a legal relationship
between parties at least one of which is not an American citizen, or at least is a
legal relationship bearing some reasonable relation with one or more foreign
states[.]”) (citation omitted).
Ze
Before re-removal, Defendants filed a motion to compel arbitration in the
Court of Chancery. D.I. 2 § 15; D.I. 2-2 at 11-12. Defendants presented their
motion to compel arbitration as a defense to SGP USA’s Delaware state law claims
by filing the motion “[i]n lieu of an answer.” D.I. 2-2 at 11. Defendants argue that
SGP USA’s claims are disputes “arising out of or in connection with” SGP USA’s
Renewal Agreement with non-party F50 League LLC d/b/a SailGP (the League)
that SGP USA agreed to resolve through mediation and arbitration before the
Court of Arbitration for Sport in Switzerland. D.I. 2-2 at 14-43.
To establish this Court’s subject-matter jurisdiction over the re-removed
action under § 203, Defendants rely on their prior argument that the Court has
federal question jurisdiction under § 203 because this action “involves a motion to
compel arbitration under an agreement that ‘fall[s] under’ the Convention”
(No. 26-182, D.I. 48 at 1, 4-7). D.I. 2 □ 18-19, 21-22; D.I. 11 at 2.
I expressed doubt in my March 9 Order about whether “a defendant bringing
a motion to compel arbitration as a defense could confer subject-matter jurisdiction
on a federal court under § 203.” No. 26-182, D.I. 65 at 5. Based on the same
briefing before me, I still have doubts that a defendant’s motion to compel
arbitration—much less a defendant’s post-remand motion to compel arbitration—
could confer original jurisdiction on a district court under § 203.
“[F]ederal courts are courts of limited jurisdiction. They possess only that
power authorized by Constitution and statute.” G. W. v. Ringwood Bd. of Educ., 28
F.4th 465, 468 (3d Cir. 2022) (citing Kokkonen, 511 U.S. at 377).
Subject-matter jurisdiction, then, is an Art. III as well asa
statutory requirement; it functions as a restriction on
federal power, and contributes to the characterization of
the federal sovereign. Certain legal consequences directly
follow from this. For example, no action of the parties
can confer subject-matter jurisdiction upon a federal
court. Thus, the consent of the parties is irrelevant ...
[T]he rule, springing from the nature and limits of the
judicial power of the United States is inflexible and
without exception ... in all cases where such jurisdiction
does not affirmatively appear in the record.
Ins. Corp. of Ireland v. Compagnie des Bauxites de Guinee, 456 U.S. 694, 701-02
(1982) (emphasis added) (internal quotation marks and citations omitted); see also
Royal Canin U. S. A., Inc. v. Wullschleger, 604 U.S. 22, 26 (2025) (“[T]he
determination of [federal question] jurisdiction is based only on the allegations in
the plaintiff's ‘well-pleaded complaint’—not on any issue the defendant may
raise. That longstanding rule makes the complaint—the plaintiff's own claims and
allegations—the key to ‘arising under’ jurisdiction. If the complaint presents no
federal question, a federal court may not hear the suit.”) (emphasis added) (citation
omitted); Vaden, 556 U.S. at 60 (“Under the longstanding well-pleaded complaint
rule, .. . [fJederal jurisdiction cannot be predicated on an actual or anticipated
defense[.]”) (internal quotation marks and citations omitted).
The well-pleaded complaint rule generally “applies to the original
jurisdiction of the district courts as well as to their removal jurisdiction.”
Franchise Tax Bd. of Cal. v. Construction Laborers Vacation Trust for Southern
Cal., 463 U.S. 1, 10 n.9 (1983). Section 205 of the FAA “overrides the
well-pleaded complaint rule pro tanto” for removal jurisdiction to the extent that
10
“the ground for removal provided in [§ 205] need not appear on the face of the
complaint but may be shown in the petition for removal.” Vaden, 556 U.S. at 59
n.9 (citing 9 U.S.C. § 205). Section 203 of the FAA, however, makes no mention
of abrogating the well-pleaded complaint rule as it applies to the original
jurisdiction of district courts under § 203.
This omission in § 203 suggests that whether a federal district court has
original jurisdiction over an action under § 203 depends on whether the action—
based on the plaintiff's operative complaint at the time of removal—is seeking to
enforce an arbitration agreement falling under the Convention. See, e.g., Bel-Ray
Co. v. Chemrite (Pty) Ltd., 181 F.3d 435, 440-41 (3d Cir. 1999) (“The District
Court had jurisdiction under 9 U.S.C. § 203 because this action [filed by a United
States plaintiff in federal district court] to compel arbitration [by international
defendants] falls under the Convention on the Recognition and Enforcement of
Foreign Arbitral Awards.”).
Defendants argue that “the Third Circuit has recognized” that “where a
defendant has moved to compel arbitration in a Convention case, a federal district
court has subject matter jurisdiction under Section 203, even if the plaintiff argues
that no arbitration agreement exists.” No. 26-182, D.I. 48 at 4—5 (citing Century
Indem. Co., 584 F.3d at 521-22). But the Third Circuit’s observation in Century
Indemnity that “[t]he FAA empowers district courts to compel arbitration in
11
accordance with agreements” under 9 U.S.C. § 206, id. at 523, does not support
Defendants’ proposition. Section 206 empowers “[a] court having jurisdiction
under this chapter” to compel arbitration. 9 U.S.C. § 206. Accordingly, a district
court having original jurisdiction under § 203 is a precondition to having the power
to compel arbitration, not a result of a defendant’s motion to compel arbitration.
The Third Circuit in Century Indemnity merely recognized that “[t]he
District Court had subject-matter jurisdiction under 9 U.S.C. § 203 to determine
whether the removed action related to a commercial arbitration agreement within
the purview of the Convention[.]” Century Indem. Co., 584 F.3d at 520-21. In
other words, the Third Circuit acknowledged that the district court at least had
subject-matter jurisdiction under § 203 to determine whether removal under § 205
was proper. That much is uncontroversial. See Comm’rs of Rd. Improvement Dist.
No. 2 of Lafayette Cnty. v. St. Louis Sw. Ry. Co., 257 U.S. 547, 557 (1922) (“The
question of removal under the federal statute is one for the consideration of the
federal court.”); Feidt v. Owens Corning Fiberglas Corp., 153 F.3d 124, 128
(3d Cir. 1998) (referring to “[t]he district court’s authority, indeed obligation, to
determine whether a removal petition properly invokes its removal jurisdiction”).
In sum, I have doubts that a defendant filing a motion to compel arbitration
as a defense in an action can transform that action into “[a]n action or proceeding
falling under the Convention” that confers original jurisdiction under § 203 ona
federal district court over the action. I have even greater doubts that a defendant’s
activity after remand and before re-removal can confer federal question jurisdiction
on a district court over that action. To find otherwise would invite gamesmanship
by defendants who could needlessly delay a case by withholding conduct,
improperly removing a case to federal court, waiting for the case to be remanded,
perform the necessary conduct to confer subject-matter jurisdiction, and re-remove
the case. Because Defendants’ argument that this action “fall[s] under the
Convention” under § 203 rests on Defendants’ March 11 motion to compel
arbitration, Defendants have not met their burden to show that the Court has
subject-matter jurisdiction over the action under § 203.
B.
I turn next to whether Defendants have met their burden to show that the
Court has subject-matter jurisdiction over the re-removed action under § 205.
l.
Section 205 of the FAA, titled “Removal of cases from State courts,”
provides in relevant part that
[w]here the subject matter of an action or proceeding
pending in a State court relates to an arbitration agreement
or award falling under the Convention, the defendant or
the defendants may, at any time before the trial thereof,
remove such action or proceeding to the district court of
the United States for the district and division embracing
the place where the action or proceeding is pending.
13
9 U.S.C. § 205; see also GE Energy Power Conversion France SAS, 590 U.S. at
439 (“Chapter 2 [of the FAA] . . . authorizes removal from state court[.]”) (citing
9 U.S.C. § 205). Section 205 does not use the word “jurisdiction.” Compare
9 U.S.C. § 205 (“Removal of cases from State courts”), with 9 U.S.C. § 203
(“Jurisdiction; amount in controversy’).
To establish this Court’s subject-matter jurisdiction over the re-removed
action under § 205, Defendants rely on their prior argument that § 205 confers “a
form of federal question jurisdiction” on a federal court over a dispute that “relates
to” an arbitration agreement “falling under the Convention” (No. 26-182, D.I. 48
at 7-12). D.I. 2 □□ 18, 20-21, 23; D.I. 11 at 2.
I expressed doubt in my March 9 Order about whether “§ 205 could confer
limited subject-matter jurisdiction on a federal court over an action with a motion
to compel arbitration.” No. 26-182, D.I. 65 at 5. Based on the same briefing
before me, I still have doubts that § 205 does anything more than authorize
removal, and I am persuaded that § 205 does not necessarily confer subject-matter
jurisdiction over an action.
The Supreme Court has exclusively cited § 203—not § 205—when
discussing jurisdiction under Chapter 2 of the FAA. See, e.g., GE Energy Power
Conversion France SAS, 590 U.S. at 439 (citing only § 203 for the proposition that
14
“Chapter 2 grants federal courts jurisdiction over actions governed by the
Convention”); Vaden, 556 U.S. at 59 n.9 (citing only § 203 for the proposition that
“Chapter 2 of the FAA, not implicated here, does expressly grant federal courts
jurisdiction to hear actions seeking to enforce an agreement or award falling under
the Convention on the Recognition and Enforcement of Foreign Arbitral Awards”).
Likewise, the Third Circuit has not endorsed a district court having
subject-matter jurisdiction under § 205. For example, the district court in Century
Indemnity denied remand based on the finding that “the instant matter ‘relates to’
an arbitration agreement falling under the Convention and 9 U.S.C. § 205 confers
federal jurisdiction over this matter.” Century Indem. Co. v. Certain Underwriters
at Lloyd’s, London, 2006 WL 6667385, at *2 (E.D. Pa. May 18, 2006). On appeal
of a granted motion to compel arbitration and denied motion to vacate an arbitral
award (the denied motion to remand was not appealed), the Third Circuit did not
adopt that district court’s jurisdictional language in connection with § 205.
Instead, the Third Circuit noted that the defendant “removed the case to the District
Court pursuant to 9 U.S.C. § 205” and that “[t]he District Court had subject-matter
jurisdiction under 9 U.S.C. § 203 to determine whether the removed action related
to a commercial arbitration agreement within the purview of the Convention[.]”
Century Indem. Co., 584 F.3d at 520-21.
15
To the extent that other courts of appeals have held that § 205 confers
subject-matter jurisdiction over an action,’ those cases are not binding on this
Court. I will adhere to the principle that “federal courts . . . possess only that
power authorized by Constitution and statute, which is not to be expanded by
judicial decree.” Kokkonen, 511 U.S. at 377.
OK CK OK
Because it appears that the Court lacks subject-matter jurisdiction and “all
doubts should be resolved in favor of remand,” I will again remand this action to
the Court of Chancery based on lack of subject-matter jurisdiction. See 28 U.S.C.
§ 1447(c); Steel Valley Auth., 809 F.2d at 1010.
I note that my determination that I lack subject-matter jurisdiction does not
leave Defendants without recourse or deprive the parties of an opportunity to
litigate the arbitrability of the arbitrability of this case. The FAA does not vest
federal courts with exclusive jurisdiction over actions or proceedings falling under
> See, e.g., Outokumpu Stainless USA, LLC v. Converteam SAS, 902 F.3d 1316,
1323-24 (11th Cir. 2018) (“[A]s long as the argument that the case ‘relates to’ the
arbitration agreement [under § 205] is not immaterial, frivolous, or made solely to
obtain jurisdiction, the relatedness requirement is met for purposes of federal
subject matter jurisdiction.”), rev’d and remanded on other grounds sub nom. GE
Energy Power Conversion France SAS, Corp. v. Outokumpu Stainless USA, LLC,
590 U.S. 432 (2020); Beiser v. Weyler, 284 F.3d 665, 669 (Sth Cir. 2002) (“[T]he
district court will have jurisdiction under § 205 over just about any suit in which a
defendant contends that an arbitration clause falling under the Convention provides
a defense.”).
16
the New York Convention. See Vaden, 556 U.S. at 71 (“Under the FAA, state
courts as well as federal courts are obliged to honor and enforce agreements to
arbitrate.”); see also Delaware Uniform Arbitration Act, 10 Del. C. Ch. 57,
§ 5702(c) (“[A]ny application to the Court of Chancery to ... obtain an order
requiring arbitration .. . shall be decided by the Court of Chancery in conformity
with the Federal Arbitration Act [9 U.S.C. § 1 et seq.], and such general principles
of law and equity as are not inconsistent with that Act.”). Defendants, by filing
their March 11 motion to compel arbitration in state court, concede that the Court
of Chancery has the power to adjudicate their motion to compel arbitration, and
Defendants remain free to pursue a defense of arbitrability based on a theory of
equitable estoppel in the Court of Chancery. See Kircher v. Putnam Funds Tr.,
547 U.S. 633, 645 (2006) (“[W]hat a state court could do in the first place it may
also do on remand[.]’’).
IV.
Finally, having decided that I will remand this action to the Court of
Chancery, I turn to address SGP USA’s request for “just costs and any actual
expenses, including attorney fees, incurred as a result of the removal.” D.I. 9
at 3-4. Defendants do not oppose the request for just costs, see generally D.I. 11,
but argue that I should reject the request for attorney fees “out of hand” based on
17
the standard noted in League of Women Voters of Pa. v. Commonwealth of Pa.,
921 F.3d 378, 383-84 (3d Cir. 2019), D.I. 11 at 2.
Section 1447(c) of the removal statutes provides that “[a]n order remanding
the case may require payment of just costs and any actual expenses, including
attorney fees, incurred as a result of the removal.” 28 U.S.C. § 1447(c). “Absent
unusual circumstances, courts may award attorney’s fees under § 1447(c) only
where the removing party lacked an objectively reasonable basis for seeking
removal.” League of Women Voters of Pennsylvania, 921 F.3d at 383-84 (quoting
Martin v. Franklin Capital Corp., 546 U.S. 132, 141 (2005)).
Because Defendants filed their Notice of Re-Removal within the thirty days
provided by 28 U.S.C. § 1446(b) and because Plaintiff pursued a litigation strategy
that enabled Defendants to file that Notice within the thirty-day window, I will
exercise my discretion and deny SGP USA’s request for just costs and any actual
expenses, including attorney fees, incurred by SGP USA as a result of the re-
removal.
eK ROK
NOW THEREFORE, at Wilmington on this Twentieth Day of March in
2026, it is HEREBY ORDERED that:
1. Plaintiff's Renewed Motion to Remand and Request to Adopt Prior
Briefing on the Renewed Motion to Remand, Renewed Motion for a
18
Temporary Restraining Order and Expedited Briefing Thereon, and
Request to Adopt Parties’ Prior Briefing on Defendants’ Motion to
Compel Arbitration (D.I. 9) (the Motion) is GRANTED IN PART and
DENIED IN PART;
2. The Motion is GRANTED insofar as (i) it requests the Court to adopt
prior briefing from Civil Action No. 26-182 on the Renewed Motion to
Remand; and (ii) it seeks to remand this action to the Court of Chancery
of the State of Delaware;
3. The Motion is DENIED insofar as it requests just costs and any actual
expenses, including attorney fees, incurred as a result of the re-removal;
4. The Motion is DENIED AS MOOT insofar as it requests expedited
briefing on Plaintiff's Renewed Motion for a Temporary Restraining
Order;
5. The Motion is otherwise DENIED without prejudice to renew in the
Court of Chancery of the State of Delaware; and
6. The Clerk of Court is directed to REMAND this action to the Court of
Chancery of the State of Delaware.
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19
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