289 Kilvert, LLC v. SBC Tower Holdings LLC
133 F.4th 1
1st Cir.2025Background
- Kilvert, a Rhode Island company, obtained interests in a commercial property at 289 Kilvert Street and sued SBC Tower (a Delaware and Texas entity) for breach of lease, seeking eviction and damages related to telecommunication tower subleases.
- The lease included a Rhode Island choice-of-law provision.
- Kilvert filed the complaint in Rhode Island district court, and SBC Tower timely removed the case to federal court based on diversity jurisdiction.
- Kilvert moved to remand, arguing Rhode Island law gave exclusive jurisdiction to the state district court for landlord-tenant disputes.
- The federal district court agreed with Kilvert, remanding the case to state court.
- SBC Tower appealed the remand order to the First Circuit.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether RI's exclusive-jurisdiction statute bars removal to federal court | RI statute gives state district courts exclusive authority over landlord-tenant actions | Statute only allocates jurisdiction among state courts, not federal courts | State statute does not divest federal courts of diversity jurisdiction |
| Effect of choice-of-law provision on forum selection | Choice-of-law equals consent to Rhode Island forum | Provision only applies to substantive law, not exclusive venue | Choice-of-law provision does not create an exclusive forum-selection clause |
| Federal court's jurisdiction despite state law | Federal court barred from hearing case by state law | Federal law sets federal court jurisdiction, which state law can't override | Only Congress determines federal court jurisdiction; federal statute preempts state law here |
| Appealability of remand order under 28 U.S.C. § 1447(d) | Remand order is unreviewable | Remand was not based on subject matter or procedural defect under § 1447(c) | Remand reviewable because order was not based on lack of subject matter jurisdiction or defect |
Key Cases Cited
- Quackenbush v. Allstate Ins. Co., 517 U.S. 706 (remand orders are reviewable only if not based on § 1447(c) grounds)
- Powerex Corp. v. Reliant Energy Servs., Inc., 551 U.S. 224 (limits on federal appellate review of remand orders)
- Nazario-Lugo v. Caribevisión Holdings, Inc., 670 F.3d 109 (federal courts must exercise lawful jurisdiction and resolve matters properly before them)
- Huffington v. T.C. Grp., LLC, 637 F.3d 18 (explains standards for enforcing forum selection clauses)