Deutsche Bank National Trust Company as Trustee v. Jerry Duran

Filing 11

ORDER GRANTING MOTION TO REMAND AND REQUEST FOR ATTORNEYS FEES AND COSTS IN THE AMOUNT OF $437.50 AND DENYING REQUEST TO BAR FUTURE REMOVALS AND PROCEED EX PARTE IN THE EVENT OF FUTURE REMOVALS 6 . The Clerk of the Court shall close this case. by Judge Otis D. Wright, II. cc: order, docket, remand letter to Los Angeles Superior Court, Santa Monica, No. 14 R0373. MD JS-6. Case Terminated. (lc). Modified on 1/23/2015 (lc).

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1 2 3 O 4 JS-6 5 6 7 United States District Court Central District of California 8 9 10 11 DEUTSCHE BANK NATIONAL TRUST Case No. 2:14-CV-08439-ODW-PLAx 12 COMPANY, as trustee 13 14 Plaintiff, v. 15 JERRY DURAN; RICHARD THOMAS; 16 and DOES 1–100, inclusive, 17 Defendants. 18 19 I. ORDER GRANTING MOTION TO REMAND AND REQUEST FOR ATTORNEYS’ FEES AND COSTS AND DENYING REQUEST TO BAR FUTURE REMOVALS AND PROCEED EX PARTE IN THE EVENT OF FUTURE REMOVALS [6] INTRODUCTION 20 Plaintiff Deutsche Bank National Trust Company, as Trustee, moves to remand 21 this action to the Superior Court of the State of California, Los Angeles County, Santa 22 Monica Judicial District for lack of federal subject-matter jurisdiction. (ECF No. 6). 23 Further, Plaintiff seeks attorneys’ fees and costs in the amount of $962.50 pursuant to 24 28 U.S.C. § 1447(c); a bar on any future removals of the action; and permission to 25 proceed ex parte if there are any future removals of the action. (Id.) Plaintiff argues 26 that Defendant Jerry Duran failed to establish a sufficient basis for removal and is 27 merely attempting to impede Plaintiff’s ability to recover possession of the real 28 property. For the reasons discussed below, the Court finds that Defendant had no 1 objectively reasonable basis for removal. Therefore, the Court GRANTS Plaintiff’s 2 Motion to Remand and AWARDS attorneys’ fees against Defendant in the amount of 3 $437.50. (Id.) Plaintiff’s request for an Order barring future removals of this action 4 and for permission to proceed ex parte in the event there are future removals of this 5 action is DENIED.1 (Id.) II. 6 FACTUAL BACKGROUND 7 Plaintiff’s claim arose out of a non-judicial foreclosure sale. (ECF No. 6, Mot. 8 to Remand [“MTR”] 1.) In March 2006, Defendant Jerry Duran executed a deed of 9 trust encumbering the real property in dispute. (Id.) In March 2014, Plaintiff 10 purchased this property at a trustee’s sale and perfected title. (Id.) Plaintiff alleges 11 Defendant remained in possession of the property and on April 16, 2014, Plaintiff 12 filed an unlawful detainer action against Defendant in the Los Angeles County 13 Superior Court. (Id. at 2; MTR Ex. 1.)2 14 The hearing on Plaintiff’s state-court motion for summary judgment was 15 originally set for August 12, 2014. (MTR 2.) On August 8, 2014, two court days 16 before that hearing, Defendant removed the action to federal court pursuant to 28 17 U.S.C. § 1441 on the basis of purported federal question jurisdiction. Specifically, 18 Defendant alleged that Plaintiff’s claim “is based upon a notice which expressly 19 references and incorporates the ‘Protecting Tenants at Foreclosure Act of 2009,’ 12 20 U.S.C § 5201.” (MTR Ex. 4, at 2.) Consequently, the hearing on Plaintiff’s MSJ was 21 continued. (MTR 2.) 22 Upon removal this case was assigned to Judge Dale S. Fischer who then 23 remanded the case holding that Plaintiff’s Complaint does not state a federal cause of 24 1 25 26 27 28 After carefully considering the papers filed in support of and in opposition to the Motion, the Court deems the matter appropriate for decision without oral argument. Fed. R. Civ. P. 78; L.R. 7-15. 2 The Court takes judicial notice to the extent it relies on the documents attached to the Request for Judicial Notice (ECF No. 6-1). See Fed. R. Evid. Rule 201(b); C.B. v. Sonora Sch. Dist., 691 F. Supp. 2d 1123, 1138 (E.D. Cal. 2009) (“The Court may take judicial notice of matters of public record, including duly recorded documents, and court records available to the public through the PACER system via the internet.”) To the extent the documents are not relied upon, the Request is moot. 2 1 action. (Id.); see Deutsche Bank Nat’l Trust Co. v. Duran, No. CV 14-6253 DSF 2 (FFMx) (C.D. Cal. Aug. 19, 2014) (order remanding case to Superior Court of 3 California, County of Los Angeles). 4 Once remanded, Plaintiff scheduled another hearing on its MSJ. On September 5 22, 2014, one day before the hearing, Defendant filed a bankruptcy petition in the 6 United States Bankruptcy Court, Central District. (MTR 3.) As a result, the hearing 7 on Plaintiff’s MSJ was once again continued. (Id.) On November 4, 2014, the United 8 States Bankruptcy Court, Central District granted Plaintiff’s request to lift the 9 automatic bankruptcy stay. (Id.; MTR Ex. 9.) 10 On October 13, 2014, Defendant filed a second Notice of Removal again 11 asserting that Plaintiff’s claim implicates the Protecting Tenants at Foreclosure Act of 12 2009, 12 U.S.C. § 5201. (MTR Ex. 10, at 2.) Plaintiff alleges that it did not receive 13 notice of this motion until it was informed by this Court on November 5, 2014. (MTR 14 3.) Plaintiff’s MSJ hearing was once more continued. (Id.) On December 3, 2014, 15 Plaintiff filed this Motion seeking (1) an order from this Court remanding this case to 16 state court, (2) attorneys’ fees and costs in the amount of $962.50, and (3) permission 17 to proceed ex parte if there are any future removals of this action. 18 Defendant did not file an opposition. 19 III. (Id. at 4.) LEGAL STANDARD 20 Federal courts are courts of limited jurisdiction, having subject-matter 21 jurisdiction only over matters authorized by the Constitution and Congress. U.S. 22 Const. art. III, § 2, cl. 1; see, e.g., Kokkonen v. Guardian Life Ins. Co. of Am., 511 23 U.S. 375, 377 (1994). A suit filed in state court may be removed to federal court if the 24 federal court would have had original jurisdiction over the suit. 28 U.S.C. § 1441(a). 25 Federal courts have original jurisdiction where an action presents a federal question 26 under 28 U.S.C. § 1331, or diversity of citizenship under 28 U.S.C. § 1332. 27 exercise diversity jurisdiction, a federal court must find complete diversity of 28 3 To 1 citizenship among the adverse parties, and the amount in controversy must exceed 2 $75,000, usually exclusive of interest and costs. 28 U.S.C. § 1332(a). 3 Courts strictly construe the removal statute against removal jurisdiction, and 4 “[f]ederal jurisdiction must be rejected if there is any doubt as to the right of removal 5 in the first instance.” Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir. 1992). The 6 party seeking removal bears the burden of establishing federal jurisdiction. Durham v. 7 Lockheed Martin Corp., 445 F.3d 1247, 1252 (9th Cir. 2006) (citing Gaus, 980 F.2d 8 at 566). IV. 9 10 11 A. DISCUSSION The Motion to Remand As an initial matter, Defendant did not file an Opposition to Plaintiff’s Motion 12 for Remand. Pursuant to Local Rule 7-12, “[t]he failure to file any required 13 document, or the failure to file it within the deadline, may be deemed consent to the 14 granting or denial of the motion.” L.R. 7-12. “[T]his alone provides a sufficient basis 15 to grant the motion.” Pac. Value Opportunities Fund II LP v. Eskidjian, No. LA CV 16 13-03442 JAK (SPx) 2013 WL 3467312, at *1 (C.D. Cal. July 9, 2013). 17 Notwithstanding Local Rule 7-12, Defendant’s second Notice of Removal was 18 untimely filed. Pursuant to 28 U.S.C. § 1446(b) (provides that a notice of removal 19 shall be filed within 30 days after the defendant’s receipt of the complaint.) 20 Defendant was served with the Summons and Complaint of Plaintiff’s unlawful 21 detainer action on April 20, 2014. (MTR 7; MTR Ex. 2.) Defendant’s second Notice 22 of Removal was filed on October 30, 2014 (MTR 7; See also Second Notice of 23 Removal)—over six months past the date he was served with the Complaint. 24 Defendant missed the 30-day time period proscribed by § 1446(b) rendering his 25 Removal motion defective. 26 Additionally, even had Defendant’s Notice of Removal been timely filed, Judge 27 Fischer previously founjd this case is not eligible for removal. Deutsche Bank, No. 28 CV 14-6253 DSF (FFMx). As discussed above, in response to Defendant’s initial 4 1 Notice of Removal, also untimely filed, Judge Fischer sua sponte remanded this case 2 to state court. Id. Judge Fischer determined “[t]he complaint is a state law unlawful 3 detainer complaint and does not state a federal cause of action.” Id. (emphasis 4 added). Moreover, Judge Fischer reiterated that “federal jurisdiction is based on the 5 plaintiff’s complaint and not on any federal counterclaims or defenses that a defendant 6 might assert.” Id. Further, as Plaintiff accurately points out, Defendant’s second 7 Notice of Removal is identical to his first. (MTR 9.) Consequently, Defendant 8 presents no new information to the Court and the Court finds no reason to disagree 9 with Judge Fischer’s earlier decision. 10 Finally, the Court is not presented with any other basis for removal. Defendant 11 makes no showing that diversity exists between the parties, nor has he presented any 12 facts indicating the amount in controversy meets the $75,000 statutory requirement. 13 Accordingly, consistent with Judge Fischer’s August 19, 2014 Order, this Court finds 14 removal improper. 15 B. The Request for Attorneys’ Fees 16 Plaintiff argues it is entitled to attorneys’ fees and costs of $962.50 incurred as a 17 result of filing the present Motion to Remand. (MTR 8.) Plaintiff cites to 28 U.S.C. 18 § 1447(c) which in relevant part provides “[a]n order remanding the case may require 19 payment of just costs and any actual expenses, including attorney fees, incurred as a 20 result of the removal.” 28 U.S.C. § 1447(c) (emphasis added). 21 In Martin v. Franklin Capital Corp., 546 U.S. 132, 134 (2005), the Supreme 22 Court granted certiorari to determine the proper standard for awarding attorneys’ fees 23 under § 1447(c). The Supreme Court acknowledged that an “appropriate test for 24 awarding fees under § 1447(c) should recognize the desire to deter removals sought 25 for the purpose of prolonging litigation and imposing costs on the opposing party, 26 while not undermining Congress’ basic decision to afford defendants a right to remove 27 as a general matter, when the statutory criteria are satisfied.” Id. at 140. Consistent 28 with that aim, the Supreme Court held that “[a]bsent unusual circumstances, courts 5 1 may award attorney’s fees under § 1447(c) only where the removing party lacked an 2 objectively reasonable basis for seeking removal.” Id. at 141 (emphasis added). 3 Here, Defendant lacked an objectively reasonable basis for seeking removal. 4 The Court agrees with Plaintiff’s assertion that Defendant’s second Notice of 5 Removal was merely a tactic to delay the expeditious resolution of this case. (MTR 4, 6 8, 9.) As described above, the hearing on Plaintiff’s MSJ has now been continued 7 four times due to various filings by Defendant. Moreover, Judge Fischer had already 8 held removal in this case would be improper. Despite this, Defendant filed a second, 9 identical Notice of Removal five months after the filing deadline passed. The Court 10 finds Defendant did not have an objectively reasonable basis for seeking removal. 11 Pac. Value Opportunities Fund II LP v. Eskidjian, No. LA CV 13-03442 JAK (SPx) 12 2013 WL 3467312, at *1–*2 (C.D. Cal. July 9, 2013) (holding defendant had no 13 objectively reasonable basis for removal where defendant failed to establish federal 14 question or diversity jurisdiction, untimely filed Notice of Removal, and failed to file 15 an opposition to plaintiff’s motion to remand). 16 The Court has “wide discretion” to grant reasonable attorneys’ fees and costs. 17 Moore v. Permanente Med. Grp., Inc. 981 F.2d 443, 447 (9th Cir. 1992). Here, the 18 Court finds that Defendant did not have an objectively reasonable basis for seeking 19 removal, therefore, to reimburse Plaintiff for unnecessary litigation costs, the Court 20 awards Plaintiff attorneys’ fees and costs in the amount of $437.50. The Court 21 acknowledges this award is below the $962.50 relief Plaintiff requested. (MTR 4, 8, 22 10.) However, since Defendant never opposed the motion, Plaintiff did not have to 23 prepare a reply as it earlier predicted. (ECF No. 6, Parto Decl. ¶ 4) Accordingly, the 24 $525.00 allocated for that purpose was not factored into the calculation of Plaintiff’s 25 reward. (Id.) 26 /// 27 /// 28 /// 6 1 C. The Request for a Court Order Barring Future Removals in This Action 2 and Permission to Proceed Ex Parte in the Event There Are Future Removals 3 An Order barring future removals of this particular action is unnecessary since 4 the defendant is already barred by the passing of the 30-day filing deadline provided 5 by § 1447(b). 6 As to Plaintiff’s second request, the Court declines to grant an order permitting 7 Plaintiff to proceed ex parte in the event there are future removals of this action. Once 8 this case is remanded to state court this Court no longer has jurisdiction over the 9 action or the parties. Accordingly, an order permitting Plaintiff to proceed ex parte 10 would be improper. If Defendant again removes this action based on the same failed 11 arguments it has used twice before, he will be required to show cause why he should 12 not be sanctioned for unnecessarily prolonging litigation with frivolous motions. See 13 FRCP Rule 11(c)(3), L.R. 11-9. V. 14 CONCLUSION 15 For the reasons discussed above, this Court finds Defendant had no objectively 16 reasonable basis for seeking removal. Accordingly, the Court GRANTS Plaintiff’s 17 Motion to Remand and AWARDS attorneys’ fees against Defendant in the amount of 18 $437.50. (ECF No. 6.) Plaintiff’s request for an Order barring future removals of this 19 action and for permission to proceed ex parte in the event there are future removals of 20 this action is DENIED. This action is remanded to the Superior Court of the State of 21 California, Los Angeles County, Santa Monica Judicial District. The Clerk of the 22 Court shall close this case. 23 IT IS SO ORDERED 24 January 23, 2015 25 26 ____________________________________ OTIS D. WRIGHT, II UNITED STATES DISTRICT JUDGE 27 28 cc: order, docket, remand letter to Los Angeles Superior Court, Santa Monica, No. 14 R0373 7

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