MCI v. Logan Group, Inc.

MCI Telecommunications Corporation (MCI) (plaintiff) sued The Logan Group and Communications Specialties, Inc. (CSI) for unpaid telephone services. Fidelity, as assignee of CSI's accounts receivable, intervened, claiming MCI had assured it that CSI's accounts would be paid but then failed to pay, and asserting breach-of-contract, fraud, and estoppel claims against MCI. Although Fidelity styled its claims as raising federal questions, they were actually rooted in state law, and there was no diversity jurisdiction since both Fidelity and MCI were incorporated in Delaware; the court ordered Fidelity to establish a proper jurisdictional basis.