Cerner Middle East Limited v. Belbadi Enterprises, No. 17-35157 (9th Cir. 2019)Annotate this Case
After Cerner filed an action in state court against defendants, defendants removed the action to federal district court. Cerner moved to remand to state court, arguing that the removal was improper and that the federal court lacked subject matter jurisdiction over the action. The district court denied the motion to remand and held that it could exercise jurisdiction under 9 U.S.C. 205, which authorizes a defendant to remove to federal court an action previously filed in state court that relates to an arbitration agreement or award falling under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards of June 10, 1958.
The Ninth Circuit reversed and held that this case was not related to an international arbitration agreement or award, as that term is used in section 205. Therefore, section 205 did not provide a proper basis for removal or for federal subject matter jurisdiction over this action. The panel held that the outcome of this case could not conceivably be affected by the arbitration awarded. Accordingly, the panel remanded with instructions to remand to state court.