Hady Elkobaitry v. Howmet Aerospace, Inc.
2:24-cv-05138
C.D. Cal.Oct 24, 2024Background
- Plaintiff Hady Elkobaitry sued Howmet Aerospace, Inc., Howmet Global Fastening Systems, Inc., and unnamed defendants in Los Angeles Superior Court for employment discrimination and related California state-law claims after being terminated from his VP/GM role.
- Defendants removed the case to federal court, claiming diversity jurisdiction under 28 U.S.C. § 1332 because the corporate defendants were citizens of Delaware and Pennsylvania, not California (where Elkobaitry is a citizen).
- The core factual dispute was the location of Howmet Global’s principal place of business: Plaintiff said Torrance, California; Defendants said Pittsburgh, Pennsylvania.
- Plaintiff moved to remand, arguing complete diversity was lacking because Howmet Global was a California citizen, submitting corporate filings and employment records to back this up.
- Defendants countered with historical filings, executive office locations, payroll documents, and IRS documentation establishing Pittsburgh as the “nerve center.”
- The central legal inquiry was the application of the Supreme Court’s “nerve center” test for determining a corporation’s principal place of business under § 1332(c)(1).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Principal place of business of Howmet Global | Torrance, CA, due to location of officers and filings | Pittsburgh, PA, is the "nerve center" for direction/control | Pittsburgh, PA |
| Existence of diversity jurisdiction | No, because Howmet Global is allegedly a CA citizen | Yes, sufficient proof of Pittsburgh HQ; no CA citizenship | Jurisdiction exists |
| Adequacy of removal | Improper due to lack of complete diversity | Proper and timely; removal supported by federal law | Removal is proper |
| Attorney’s fees for improper removal | Entitled to fees if remand appropriate | Not entitled if removal was objectively reasonable | Fees denied |
Key Cases Cited
- Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375 (federal courts are courts of limited jurisdiction)
- Owen Equip. & Erection Co. v. Kroger, 437 U.S. 365 (complete diversity requirement)
- Hertz Corp. v. Friend, 559 U.S. 77 ("nerve center" test determines a corporation’s principal place of business)
- McNutt v. Gen. Motors Acceptance Corp. of Indiana, 298 U.S. 178 (party must support jurisdictional allegations with competent proof)