Opinion ID: 3027785
Heading Depth: 1
Heading Rank: 1

Heading: introduction

Text: The parties appeal and cross-appeal from a judgment and orders in this action that Emerald Investors Trust (“Emerald Trust”) brought, predicated on the district court’s asserted diversity of 2 citizenship jurisdiction, seeking recovery on two unpaid promissory notes and foreclosure of the mortgages securing the notes. The district court, over the defendants’ objection, held that it had diversity of citizenship jurisdiction because the sole beneficiary of Emerald Trust was Emerald Investors Ltd. (“Emerald Ltd.”), a corporation incorporated in the British Virgin Islands where it had its principal place of business, and the defendant partnerships, all of which are undoubtedly citizens of states within the United States, are not citizens of the British Virgin Islands. As always, after we are satisfied of our own jurisdiction,1 the threshold, and, indeed, as it turns out, the only issue on this appeal is whether the district court had subject matter jurisdiction. Inasmuch as we cannot determine if the district court had diversity of citizenship jurisdiction and there is no other basis for it to have exercised jurisdiction, we do not reach the merits of the case. Rather, we will remand the matter to the district court to resolve the jurisdictional issue after allowing discovery and conducting any hearing that it deems necessary.