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Zambelli Fireworks Mfg. Co., Inc. v. Wood

United States Court of Appeals for the Third Circuit
592 F.3d 412 (3rd Cir. 2010)


Facts

Zambelli Fireworks Manufacturing Co., Inc. d/b/a/ Zambelli Fireworks Internationale (Zambelli) (plaintiff) is a Pennsylvania corporation with its principal place of business in New Castle, Pennsylvania. Matthew Wood, a Florida resident, signed an employment agreement with Zambelli that contained a two-year restrictive covenant not to compete. Despite this, shortly after leaving Zambelli, Wood went to work for a competitor, Pyrotecnico F/X, LLC (Pyrotecnico) (defendant). Pyrotecnico is a limited liability company (LLC) registered in the State of Nevada. Pyrotecnico’s only member is Pyrotecnico of Louisiana, LLC, an LLC registered in Louisiana. Zambelli sued Wood and Pyrotecnico to enforce the restrictive covenant in federal court under diversity jurisdiction, alleging that it was a citizen of Pennsylvania, Wood was a citizen of Florida, and Pyrotecnico was a citizen of Nevada. Nevertheless, at trial, Stephen Vitale, the managing member of Pyrotecnico of Louisiana, LLC testified that he resided and worked at Pyrotecnico’s New Castle, Pennsylvania headquarters. The United States Court of Appeals for the Third Circuit, sua sponte, determined that the parties might not be diverse and requested supplemental briefs on jurisdiction.

Rule of Law

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Issue

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Holding and Reasoning (Fisher, J.)

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