Saadeh v. Farouki – Case Brief
Saadeh v. Farouki, 107 F.3d 52 (D.C. Cir. 1997).
Facts: Farouki (D) defaulted on a loan he had received from Saadeh (P). Saadeh filed a diversity action in federal district court to recover the unpaid funds. When the suit was filed, Farouki was a citizen of Jordan but also had permanent resident status and was a citizen of Maryland. Saadeh was a citizen of Greece. Farouki later became a U.S. citizen while the lawsuit was pending. The trial court entered judgment in favor of P and D appealed on the grounds that there was no diversity of citizenship among the parties.
Issue: Does diversity of citizenship exist between an alien and an alien who has permanent resident status in the US?
Holding and Rule: No. Diversity of citizenship does not exist between an alien and an alien who has permanent resident status in the US.
The court noted that Congress amended the diversity statute in 1988; an alien admitted to the United States for permanent residence shall be deemed a citizen of the State in which such alien is domiciled.
The court held that despite the plain language of the amendment it appeared to have been intended only to eliminate diversity in suits between a citizen and an alien with permanent resident status living in the same state. The court held that the amendment was not intended to create diversity jurisdiction for suits between an alien and another alien with permanent resident status.
Disposition: Dismissed for lack of jurisdiction.
Notes: Most courts reject an interpretation of the amended diversity statute which allows diversity between an alien and an alien with permanent resident status. This court held that the amendment was intended merely to eliminate diversity between a US citizen and an alien with permanent resident status residing in the same state.