Castillo Grand, LLC v. Sheraton Operating Corp., No. 11-2457 (2d Cir. 2013)Annotate this Case
This case stemmed from plaintiff's suit against Sheraton, alleging state law claims and invoking subject matter jurisdiction based on diversity of citizenship pursuant to 28 U.S.C. 1332(a). The district court dismissed plaintiff's first and second complaint for lack of subject matter jurisdiction. Sheraton subsequently moved for "just costs" including attorney's fees pursuant to 28 U.S.C. 1919 and the district court granted the motion, concluding that plaintiff's second complaint was engineered to re-assert diversity jurisdiction. Plaintiff appealed. The court concluded that section 1919 did not authorize an award of attorney's fees and that, although such fees could be awarded on a non-statutory basis for bad faith in the conduct of litigation, fees were not warranted under the circumstances of this case. Therefore, the court vacated the district court's order and remanded with directions to delete the award of attorney's fees.