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- Title
Award of $0 and Diversity Jurisdiction.
- Abstract
This article looks at the case of Vernon Vu Long v. Circuit City Stores Inc., regarding diversity jurisdiction. The US 9th Circuit held that to determine the existence of diversity jurisdiction to hear a motion to vacate an award, the figure for determining the amount in controversy is the amount of the award, not the claim amount asserted in the arbitration. Vernon Vu Luong commenced a lawsuit against Circuit City Stores alleging discrimination in violation of the U.S. Americans with Disabilities Act and seeking damages in excess of $75,000. Circuit City successfully moved to compel arbitration. Luong lost the arbitration. The arbitrator found that Luong was not disabled or regarded as disabled under the case of law. Luong filed a petition in federal district court to vacate the award in favor of Circuit City. Circuit City moved to dismiss for lack of subject-matter jurisdiction. Luong argued that the court had diversity jurisdiction because the original claim was for more than $75,000. The district court granted Circuit City's motion, finding that diversity jurisdiction was lacking because the award was for zero dollars. The court also held that even though the petition alleged that the arbitrator acted in manifest disregard of federal law, Luong's petition did not raise a federal question. The 9th Circuit affirmed, holding that the amount in controversy for purposes of diversity jurisdiction in a proceeding to vacate an award is the amount awarded, not the sum claimed in the arbitration. Since the award was less than $75,000, the district court properly dismissed for lack of jurisdiction.
- Subjects
JURISDICTION; VERNON Vu Long; ARBITRATION &; award; CIRCUIT City Stores Inc.; DISABILITY laws; ACTIONS &; defenses (Law)
- Publication
Dispute Resolution Journal, 2004, Vol 59, Issue 2, p92
- ISSN
1074-8105
- Publication type
Article