Jet Midwest International Co., Ltd. v. Jet Midwest Group, LLC, No. 18-1311 (8th Cir. 2019)
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After JetMidwest filed suit against JMG for breaching a loan agreement, the district court granted summary judgment to JetMidwest but denied its motion for reimbursement of its attorneys' fees under the agreement.
As a preliminary matter, the Eighth Circuit held that a Hong Kong limited company is equivalent to a U.S. corporation under 28 U.S.C. 1332. Therefore, the district court properly exercised subject matter jurisdiction under section 1332 and the court had appellate jurisdiction under 28 U.S.C. 1291. On the merits, the court disagreed with the district court's interpretation of the agreement, holding that the use of the sweeping language "all costs and expenses" reflects the parties' intent that JMG would pay Jet Midwest's attorneys' fees and other costs for enforcing
as well as preparing the agreement. Accordingly, the court reversed and remanded for consideration of an appropriate award.
Court Description: Gruender, Author, with Arnold and Stras, Circuit Judges] Civil Case - Diversity - Attorneys Fees. Citizenship of a Hong Kong limited company is equivalent to a U.S. corporation under 28 U.S.C. sec. 1332(a) for purposes of establishing subject matter jurisdiction. District court's interpretation of the contract in denying attorneys fees is reversed. Phrase "all costs and expenses" should be construed consistently between preparing and enforcing the loan agreement and includes attorneys fees. Cap applied only to preparation costs.
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