NJOY, LLC v. Imiracle (HK) Limited
3:24-cv-00397
S.D. Cal.Jun 26, 2025Background
- NJOY, LLC filed suit in federal court alleging violations related to the sale of flavored disposable vapor devices, naming several groups of defendants including brick-and-mortar retailers.
- The brick-and-mortar retailer defendants moved for judgment on the pleadings, arguing a lack of subject matter jurisdiction.
- While this motion was pending, NJOY and the retailer defendants reached a settlement involving entry of judgment and a permanent injunction.
- NJOY also sought court approval to file a First Amended Complaint, likely to address jurisdictional pleading issues.
- Key parts of the litigation continued as to other defendants not part of the joint settlement motion, leaving the case ongoing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Adequacy of subject matter jurisdiction | Jurisdiction is supported by diversity & supplemental jurisdiction based on related federal claims | Complaint fails to properly plead jurisdiction over retailer defendants | Court held supplemental jurisdiction exists; motion denied |
| Entry of permanent injunction and judgment | Parties consented to permanent injunctive relief against the retailer defendants | No opposition to joint motion (settled parties) | Injunction and judgment granted; clerk to enter under Rule 54(b) |
| Leave to amend complaint | Leave to amend should be granted as there is no undue delay, bad faith, or prejudice | No opposition filed to motion to amend | Leave to amend granted |
Key Cases Cited
- Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375 (1994) (federal courts’ limited jurisdiction and burden on party asserting jurisdiction)
- Stock West, Inc. v. Confederated Tribes, 873 F.2d 1221 (9th Cir. 1989) (presumption against federal jurisdiction)
- NewGen, LLC v. Safe Cig, LLC, 840 F.3d 606 (9th Cir. 2016) (permitting amendment of defective jurisdictional allegations)
- Sonoma County Ass’n of Retired Employees v. Sonoma County, 708 F.3d 1109 (9th Cir. 2013) (liberal grant of leave to amend pleadings)
- Owens v. Kaiser Foundation Health Plan, Inc., 244 F.3d 708 (9th Cir. 2001) (factors for granting leave to amend pleadings)
- Foman v. Davis, 371 U.S. 178 (1962) (standards governing amendments to pleadings)