Santa Fe Gold Corporation et al v. Sanders et al

Filing 16

IT IS ORDERED Defendant Douglas Murray Sanders's #12 Motion for Extension of Time to File Response is GRANTED. He shall have 45 days following remand to Answer or otherwise respond to Plaintiffs' Complaint. Defendant's #15 Motion for Leave to Request Waiver of Service Via Plaintiffs Counsel is DENIED AS MOOT. This case is REMANDED to Pima County Superior Court (Cause # C20214048). The Clerk of the Court shall mail a certified copy of this Order to the Clerk of the Pima County Superior Court, and shall then close its file in this matter. Signed by Magistrate Judge Bruce G Macdonald on 11/18/21. (Attachments: #1 Remand Letter) (BAC)

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IN THE UNITED STATES DISTRICT COURT

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FOR THE DISTRICT OF ARIZONA

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9 Santa Fe Gold Corp., et al.,
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No. CV-21-0373-TUC-BGM

Plaintiffs,

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ORDER

12 Sanders, et al.,
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Defendants.

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Currently pending before the Court are Defendant Douglas Murray Sanders’s

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Motion for Extension of Time to File Response (Doc. 12) and Motion for Leave to Request

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Waiver of Service Via Plaintiffs’ Counsel (Doc. 15).

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Subject Matter Jurisdiction
Defendant Douglas Murray Sanders removed this cause of action from Pima County
Superior Court based upon diversity of citizenship. Not. of Removal (Doc. 1).

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“Federal courts are courts of limited jurisdiction.” Kokkonen v. Guardian Life Ins.

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Co. of America, 511 U.S. 375, 377, 114 S. Ct. 1673, 1675, 128 L. Ed. 2d 391 (1994); see

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also U.S. Const. art. III. District courts have original jurisdiction “of all civil actions where

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the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and

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costs, and is between (1) citizens of different States; (2) citizens of a State and citizens or

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subjects of a foreign state; (3) citizens of different States and in which citizens or subjects

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of a foreign state are additional parties; and (4) a foreign state, defined in section 1603(a)

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of this title as plaintiff and citizens of a State or of different States.” 28 U.S.C. § 1332.

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This is referred to as diversity jurisdiction. Section 1441, 28 U.S.C., delineates which

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actions are removable. “Except as otherwise expressly provided by Act of Congress, any

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civil action brought in a State court of which the district courts of the United States have

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original jurisdiction, may be removed by the defendant or the defendants to the district

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court of the United States for the district and division embracing the place where such

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action is pending.” 28 U.S.C. § 1441(a). There exists, however, a “‘strong presumption’

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against removal jurisdiction [which] means that the defendant always has the burden of

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establishing that removal is proper.” Gaus v. Miles, Inc. 980 F.2d 564, 566 (9th Cir. 1992)

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(citations omitted). Federal courts “strictly construe the removal statute against removal

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jurisdiction.” Id. (citations omitted). Additionally, “[f]ederal jurisdiction must be rejected

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if there is any doubt as to the right of removal in the first instance.” Id.

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Plaintiffs’ Complaint (Doc. 1-3) alleges eight (8) grounds for relief: 1) recording

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false documents; 2) filing a false or misleading non-consensual lien; 3) a special action to

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remedy filing of false or fraudulent secured interest; 4) pattern of unlawful activity; 5)

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illegal control or conduct of an enterprise; 6) interference with contract or business

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expectancy; 7) declaratory relief; and 8) injunctive relief. Rule 8(b)(1), Arizona Rules of

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Civil Procedure, instructs that “[i]n all actions in which a party is pursuing a claim other

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than for a sum certain or for a sum which can by computation be made certain, no dollar

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amount or figure for damages sought shall be stated in any pleading[.]” Ariz. R. Civ. P.

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8(b)(1). Accordingly, Plaintiffs’ Complaint (Doc. 1-3) does not specify an amount in

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controversy.1 “Where the complaint does not demand a dollar amount, the removing

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defendant bears the burden of proving by a preponderance of evidence that the amount in

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controversy exceeds [the jurisdictional minimum].”

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Automobile Ins. Co., 116 F.3d 373, 376 (9th Cir. 1997) (citations omitted).

Singer v. State Farm Mutual

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Counts One (1) through Six (6) of Plaintiffs’ complaint (Doc. 1-3) suggest potential
damages of 1) $5,000.00 plus reasonable attorney’s fees; 2) $500.00 plus reasonable attorney’s
fees; 3) reasonable attorney’s fees; 4) up to treble damages plus pre-judgment interest, costs, and
reasonable attorney’s fees; 5) up to treble damages plus pre-judgment interest, costs, and
reasonable attorney’s fees; and 6) net profits/benefit plus punitive damages.

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Defendant Sanders claims that “[b]ased on [his] documented claims under the

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Uniform Commercial Code against non-parties, which the Plaintiffs are fraudulently and

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illegally attempting to render void under the State Court Action, Defendant Sanders has

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actual knowledge and proof that the amount in controversy exceeds the jurisdictional

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requirement of $75,000 for removal of actions based on diversity.” Def.’s Not. of Removal

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(Doc. 1) at ¶ 13. The jurisdictional amount in controversy is what Plaintiffs’ claims are

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worth, not speculation regarding the value of claims Defendant might have against non-

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parties. As such, Defendant has not met his burden to demonstrate this Court has subject

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matter jurisdiction.

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Accordingly, IT IS HEREBY ORDERED that:

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(1)

Defendant Douglas Murray Sanders’s Motion for Extension of Time to File

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Response (Doc. 12) is GRANTED. He shall have forty-five (45) days following remand

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to Answer or otherwise respond to Plaintiffs’ Complaint;

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(2)

Defendant’s Motion for Leave to Request Waiver of Service Via Plaintiffs’

Counsel (Doc. 15) is DENIED AS MOOT;
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This case is REMANDED to Pima County Superior Court (Cause #

C20214048);
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The Clerk of the Court shall mail a certified copy of this Order to the Clerk

of the Pima County Superior Court; and
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The Clerk of the Court shall then close its file in this matter.

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Dated this 18th day of November, 2021.

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