Saturday, December 28, 2013

MCI v. Logan Group, Inc. case brief

MCI v. Logan Group, Inc. case brief summary
848 F.Supp 86 (1994)

CASE SYNOPSIS
Plaintiff telephone carrier filed an action against defendant customers for failure to pay for services provided; one of the customers filed a counterclaim for billing errors and for failure to pay over money collected on its behalf for certain services. Intervenor moved for leave to file an amended complaint in intervention. The court reviewed the case under 28 U.S.C.S. § 1367(b) and Fed. R. Civ. P. 24(a).

CASE FACTS
Intervenor had purchased the rights to receive certain accounts receivable from one of the customers, and it was initially permitted to intervene in the action on the basis of federal question jurisdiction under 28 U.S.C.S. §1331. Intervenor later admitted that federal question jurisdiction was lacking as the parties' dispute was not dependent upon a tariff of the telephone carrier.

DISCUSSION

  • Diversity jurisdiction existed between the telephone carrier and the customers. 
  • Intervenor's claims were based on state law. 
  • The court dismissed intervenor's claims without prejudice, and the motion to amend the petition in intervention was denied as moot. 
  • Intervenor did not show that it was intervenor of right, as it could not show that the disposition of the parties' dispute could, as a practical matter, impair its interests. 
  • Intervenor could not rely upon the diversity jurisdiction between the parties as a basis for the court's jurisdiction over its claims. 
  • Jurisdiction could not be created by the parties' consent, conduct, or by estoppel. 
  • No independent basis for intervenor's claims existed, as was required under 28 U.S.C.S. § 1367(b).

CONCLUSION
The court dismissed intervenor's claims without prejudice and denied intervenor's motion for leave to file an amended petition in intervention as moot.

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