MCI v. Logan Group, Inc.
United States District Court for the Northern District of Texas
848 F.Supp 86 (1994)
MCI Telecommunications Corporation (MCI) (plaintiff) sued The Logan Group, Inc. and Communications Specialties, Inc. (CSI) (defendants) in the United States District Court for the Northern District of Texas for unpaid telephone services. Fidelity intervened under Federal Rule of Civil Procedure (FRCP) 24(a) as assignee of CSI’s accounts receivable. Fidelity claimed breach of contract and fraud because MCI gave assurances that the accounts would be paid, but did not pay. The court did not believe Fidelity was entitled to intervention as a matter of right, but allowed the unopposed intervention because there was a shared question of fact. Fidelity amended its complaint to include promissory and equitable estoppel claims against MCI. Fidelity’s claims were rooted in state law, but in pleadings Fidelity asserted federal question jurisdiction. There was no diversity of citizenship, because both Fidelity and MCI were incorporated in Delaware. Thus, the court ordered Fidelity to show cause why federal jurisdiction of proper.
Rule of Law
Holding and Reasoning (Mahon, J.)