CG Access Group, LLC v. Fabrique Innovations, Inc., 1:24-cv-03230

Plaintiff CG Access Group, LLC, a sales facilitator, entered into a contract with Defendant Fabrique Innovations, Inc., for sales-related services with a 5% commission agreement.
Defendant, a New York corporation, failed to pay several invoices between 2021 and 2022, resulting in significant arrears to Plaintiff.
Parties attempted to resolve payment through installment plans and communication, but Defendant only made partial payments, leaving over $165,000 unpaid.
Plaintiff sued for breach of contract, account stated, quantum meruit, and violation of New York Labor Law (NYLL) Section 191-c, seeking over $165,000 in damages and statutory double damages.
Defendant moved to dismiss for lack of subject matter jurisdiction, arguing the amount in controversy was below the $75,000 requirement for diversity jurisdiction; Plaintiff opposed.
The court had to determine whether the jurisdictional amount was satisfied, particularly considering NYLL liquidated damages.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Does the court have diversity jurisdiction based on amount in controversy?	Claims (including double damages under NYLL) exceed $75,000; complaint made in good faith.	Actual arrears are less (around $53,000 or $44,000), and the court should not exercise jurisdiction.	The amount in controversy is satisfied, especially under NYLL; motion to dismiss denied.
Can liquidated damages and attorneys’ fees under NYLL be included in the jurisdictional amount?	Liquidated damages and attorneys’ fees are recoverable and must be included.	Did not directly address this; challenged only base commission computations.	Liquidated damages and attorneys' fees are considered; amount exceeds threshold.
Effect of a purported oral modification reducing the commission rate.	Dispute over commission rate is a factual issue inappropriate for resolution on motion to dismiss.	Claimed parties orally agreed to reduce the commission from 5% to 4%.	Factual disputes do not defeat jurisdiction at pleading stage; court accepts Plaintiff's allegations as true.
Whether NYLL claim is a proper basis for diversity jurisdiction.	Diversity jurisdiction applies to all state law claims if amount in controversy and diversity are met.	Argued the court should decline jurisdiction over a state statutory claim.	Court clarified it has diversity jurisdiction over state law claims regardless.

Scherer v. Equitable Life Assurance Soc'y, 347 F.3d 394 (2d Cir. 2003) (sets forth standard for diversity jurisdiction and burden of proof for amount in controversy)
Wolde-Meskel v. Vocational Instruction Project Cmty. Servs., Inc., 166 F.3d 59 (2d Cir. 1999) (creates rebuttable presumption of good faith in jurisdictional amount pleaded)
Marakova v. United States, 201 F.3d 110 (2d Cir. 2000) (standards for Rule 12(b)(1) subject matter jurisdiction dismissals)