Baldwin v. Burger Chef Systems Inc‪.‬

In October 1971, Burger Chef Systems, Inc., and Baldwin, Inc., entered into a lease and franchise agreement for the operation of a fast food restaurant. Acting in their individual capacities, members of the Baldwin family, appellees here, guaranteed the performance of Baldwin, Inc., under the agreement. In May 1973, Burger Chef filed a demand for arbitration, seeking to recover from Baldwin, Inc., and from the guarantors arrearages due under the contract in the amount of $21,365.16. Shortly thereafter, the Baldwins filed a complaint against Burger Chef in the Circuit Court for Saginaw County, Michigan, asking that Burger Chef be enjoined from pursuing the arbitration remedy and praying for a declaration that the individual guaranties are invalid. The complaint made no reference to the amount sought by Burger Chef in the arbitration proceeding. Burger Chef subsequently filed a petition to remove the case to the District Court on the basis of diversity of citizenship. However, the District Court granted the Baldwins' motion to remand on the ground that the requisite amount in controversy was not established by the Circuit Court complaint. The court also awarded $750 to the Baldwins for attorneys' fees incurred because of the removal. Burger Chef now appeals from this award.