HICA Education Loan Corporation v. Vien D Doan

Filing 7

MINUTES OF IN CHAMBERS - COURT ORDER by Judge Percy Anderson: Before the Court is the Complaint filed by plaintiff HICA Education Loan Corporation against defendant Vien Doan. The Complaint alleges that Plaintiff is the owner of a promissory note sig ned by Defendant pursuant to the Health Education Assistance Loan Program. Plaintiff alleges that Defendant is in default and seeks to recover the amount of the loan, interest, attorneys' fees, and assorted costs, fees, and charges. The laws and regulations upon which Plaintiff relies do not appear to create a private right of action under federal law for the collection of unpaid student loans. Nor is it clear in any other respect how Plaintiff's Complaint, which alleges a single claim for "default" to collect the unpaid balance of a student loan, "arise" under federal law. The Court therefore orders Plaintiff to show cause in writing why this action should not be dismissed without prejudice for lack of subject matter jurisdiction. Plaintiff's response to this order to show cause shall be filed no later than 10/21/2011. The failure to adequately respond to this order by that date may result in the dismissal of this action. Court Reporter: Not Reported. (gk)

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES - GENERAL
Case No.

CV 11-7122 PA (CWx)

Title

HICA Education Loan Corp. v. Vien Doan

Present: The
Honorable

Date

October 12, 2011

PERCY ANDERSON, UNITED STATES DISTRICT JUDGE

Paul Songco

Not Reported

N/A

Deputy Clerk

Court Reporter

Tape No.

Attorneys Present for Plaintiffs:

Attorneys Present for Defendants:

None

None

Proceedings:

IN CHAMBERS - COURT ORDER

Before the Court is the Complaint filed by plaintiff HICA Education Loan Corporation
(“Plaintiff”) against defendant Vien Doan (“Defendant”). The Complaint alleges that Plaintiff is the
owner of a promissory note signed by Defendant pursuant to the Health Education Assistance Loan
(“HEAL”) Program. According to the Complaint, Defendant has failed to make all required payments
on the loan. Plaintiff alleges that Defendant is in default and seeks to recover the amount of the loan,
interest, attorneys’ fees, and assorted costs, fees, and charges.
The Complaint asserts that the Court possesses subject matter jurisdiction over this action by
virtue of the Court’s federal question jurisdiction. Specifically, the Complaint alleges:
This court has jurisdiction over this lawsuit pursuant to 28 U.S.C. § 1331
because the Plaintiff’s claims against the Defendant arise under the
Constitution, laws, or treaties of the United States. Specifically, Plaintiff’s
claims are founded upon one or more promissory notes executed pursuant
to 42 U.S.C. §§ 292/294 et seq. and the Federal Regulations set forth in 42
CFR Part 60 governing the administration of the Health Education
Assistance Loan (HEAL) Program.
(Complaint 2:8-15.)
The laws and regulations upon which Plaintiff relies do not appear to create a private right of
action under federal law for the collection of unpaid student loans. Nor is it clear in any other respect
how Plaintiff’s Complaint, which alleges a single claim for “default” to collect the unpaid balance of a
student loan, “arise” under federal law. The Court therefore orders Plaintiff to show cause in writing
why this action should not be dismissed without prejudice for lack of subject matter jurisdiction.
Plaintiff’s response to this order to show cause shall be filed no later than October 21, 2011. The failure
to adequately respond to this order by that date may result in the dismissal of this action.
IT IS SO ORDERED.
CV-90 (06/04)

CIVIL MINUTES - GENERAL

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