Cerner Middle East Limited, a Cayman Islands Exempted Company, Plaintiff-Appellant,
Belbadi Enterprises LLC, a U.A.E. Limited Liability Company; Vandevco Limited, a Washington Corporation, Defendants-Appellees.
and Submitted October 12, 2018 Portland, Oregon
from the United States District Court for the Western
District of Washington Ronald B. Leighton, District Judge,
Presiding D.C. No. 3:16-cv-05706-RBL
E. Gluck (argued), Samuel Spital, and Stosh Silivos, Holland
& Knight LLP, New York, New York; David J. Elkanich and
Garrett S. Garfield, Holland & Knight LLP, Portland,
Oregon; for Plaintiff-Appellant.
H. Trinchero (argued) and Gary I. Grenley, Garvey Schubert
Barer, Portland, Oregon, for Defendants-Appellees.
Before: Richard R. Clifton and Consuelo M. Callahan, Circuit
Judges, and Roger T. Benitez, [*] District Judge.
/ International Arbitration
panel reversed the district court's order denying
plaintiff's motion to remand to state court an action
that had been removed to federal court on the basis that it
related to an international arbitration award. 9 U.S.C.
§ 205 authorizes the removal by a defendant of an action
previously filed in state court if the action relates to an
arbitration agreement or award under the Convention on the
Recognition and Enforcement of Foreign Arbitral Awards. The
panel concluded that the outcome of this case could not
conceivably be affected by an arbitration award arising from
a dispute concerning a contract for the development of
medical information software. Specifically, the arbitration
award could not have preclusive effect over whether certain
entities were alter egos or over the amount of damages that
certain entities owed to the plaintiff; the factual findings
in the arbitration award could not affect the outcome of this
case; and the possibility that the district court could find
persuasive the legal analysis contained in the arbitration
award was insufficient. The panel therefore held that the
action did not relate to an arbitration agreement under the
Convention. Accordingly, 28 U.S.C. § 205 did not
authorize removal of the action to federal court or provide
federal subject matter jurisdiction over this case.
panel reversed the district court's order and remanded
with instructions to remand the case to state court.
CLIFTON, Circuit Judge:
appeal presents questions regarding the removal from state
court to federal court of an action that arguably relates to
an international arbitration award. Under 9 U.S.C. §
205, a defendant is authorized 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, sometimes described as the
"New York Convention." Plaintiff-Appellant Cerner
Middle East Limited filed an action in Washington state court
against Defendants-Appellees Belbadi Enterprises, LLC and
Vandevco Limited. Defendants removed the action to federal
district court. Cerner moved to remand it 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 that motion to remand, holding that it
could exercise jurisdiction under 9 U.S.C. § 205.
view, this case is not related to an international
arbitration agreement or award, as that term is used in the
statute, and no other basis for federal jurisdiction has been
offered by Defendants. We therefore reverse the district
court's denial of Cerner's motion to remand and
remand the case to the district court with instructions that
it be remanded to the Washington state court.
action is one of several disputes between Cerner, on one
side, and Ahmed Saeed Mohammad Al Badi Al
Dhaheriand entities controlled by Dhaheri, on the
Cerner Middle East Limited (which will be identified in this
opinion as "Cerner") is a Cayman Islands
corporation with its principal place of business in Kansas
City, Missouri. It is a subsidiary of Cerner Corporation, a
medical services technology company based in Kansas City,
whose revenue in 2018 was in excess of $5 billion and whose
stock is listed on the NASDAQ exchange.
a businessman with substantial holdings, is a citizen and
domiciliary of the United Arab Emirates ("UAE"). He
is not a party to the current action, but Cerner alleges that
Dhaheri owns and controls Defendant Belbadi Enterprises, LLC,
a UAE corporation with its principal place of business in Abu
Dhabi, UAE. Cerner further alleges that Belbadi is the owner
of Defendant Vandevco Limited, that Vandevco is a Washington
corporation with its principal place of business in
Vancouver, Washington, and that Vandevco owns, through other
entities, the Vancouver Center, a mixed residential and
commercial development in Vancouver. Cerner alleges that
Vandevco is an alter ego of Belbadi for jurisdictional and
liability purposes. Other entities related to Dhaheri that
are involved in the history of this dispute, ...